Ninety-two percent of small business owners reported that all their credit needs were met or that they were not interested in borrowing in April, according to the National Federation of Independent Business. Only 8% of small business owners stated that not all of their credit needs were satisfied.
Thirty-two percent of all small business owners reported borrowing on a regular basis, 4 points above the record low.
For an overwhelming majority of small businesses, credit is not a problem as only 3% of small businesses reported credit supply as their number one business problem.
The report noted that banks have money to lend; but face weak loan demand. Despite money being cheap, business owners have no incentive to borrow to expand and invest in new equipment and new workers due to historically weak sales. Planned capital outlays over the next 3 to 6 months remain at recessionary levels.
Only 4% of small business owners stated that this is a good time to expand their operations.
Not surprisingly, the Small Business Optimism Index fell slightly in April.
Read the report.