Florida small business loans appear to be awarded well below the national rate, despite the state having higher plans for growth than the rest of the nation in the upcoming months. According to the most recent Private Capital Access Index from Pepperdine University and Dun & Bradstreet, less than a fifth of Florida small business loans were awarded, compared to 37 percent nationally. This inability to access capital could be why small businesses are feeling constrained; 62 percent feel that their growth opportunities are restricted and 48 percent feel that their ability to hire is restricted as well. The lack of access to capital may be troubling for these businesses, especially considering the rates at which they plan to grow. At 68 percent, Florida small businesses are not only planning to hire above the national rate, they also need financing due to planned growth more than the rest of the nation.
Without better access to small business loans, Florida business owners may have to make up the loss themselves, just like they did in Q1 2015 when 38 percent of small businesses surveyed funded their business needs through use of their personal assets. Using personal assets can be risky for business owners, as any difficulty with their businesses could potentially hurt their personal credit.
Is your business struggling with financing? Visit Access to Capital to learn more about funding options and resources for small businesses.
See more statistics on Florida small businesses in the graphic below: