New York small businesses loans appear to be being awarded at extremely low rates compared to the national average, even though the state has higher rates of planned growth. Only 20 percent of New York small business loans are being awarded, compared to 36 percent nationally, according to the most recent Private Capital Access Index from Pepperdine University and Dun & Bradstreet. This may be troubling, considering the rates at which these businesses are planning to grow in the next few months. New York small businesses are not only planning to hire at a rate higher than the national average, they are planning and in need of financing at higher rates than the national average as well. As the 20 percent success rate shows, New York small business loans are in short supply. This could be why businesses in New York are feeling constrained, as 57 percent feel their growth opportunities are restricted and 51 percent feel that their ability to hire is restricted.
Without better access to small business loans, New York small business owners may have to turn to their personal assets for help, just like they did in Q1 2015 when 39 percent were forced to rely on their personal assets to fuel their business. If small business owners are forced to use personal assets, then they may find themselves compromised down the line without that capital to turn to in times of need.
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See more statistics on New York small businesses in the graphic below: