The SBRB report, co-sponsored by Business Today Magazine, solely focused on examining issues related to small businesses and their relationships with lenders. More than 500 owners and managers throughout the U.S. participated in the study.
The study also indicated that of those businesses that have increased their loan levels during the past six months, 35% find their access to credit more difficult, 12% find access to credit is easier and 5% find it impossible.
This is the fourth in a series of four SBRB/Business Today reports examining small business lending relationships and loan needs. The first report indicated that the relationships small businesses have with their principal lenders appear to be good and even getting better; however, the 45% of owners and managers that use their residence as collateral said they have experienced a decrease in loan limits up to 10%.
The second report focused on overall 2008 loan needs and anticipated 2009 credit requirements. The report found that 25% said they will increase the dollar value of their loan requests or raise the limit on their line of credit in 2009. This is an increase of one point from the 26% of small businesses that increased their loans or line of credit in 2008. 58% reported that their line of credit will remain unchanged.
The third report conveyed information about the use of residences as collateral for business loans. Of those business owners indicating that they use their home as collateral, 50.4% said their lenders had amended their borrowing levels with 56% of the respondents receiving a decrease in credit.
