The latest report from the Small Business Credit Survey (SBCS) for 2023 indicates that the challenges faced by businesses due to the COVID-19 pandemic are gradually diminishing. Issues such as supply chain disruptions have improved since 2022. While business performance has rebounded from the lows seen during the pandemic, it has not yet reached pre-pandemic levels.
Small businesses are still encountering obstacles in their operations and finances. Many businesses struggled with increasing costs and managing operating expenses in the period leading up to the survey conducted from September to November 2023. Although the number of businesses struggling to hire or retain skilled employees decreased from 2022 to 2023, it remained a significant operational challenge for most.
Regarding financing, there was a slight decrease in the number of businesses applying for loans, credit lines, or cash advances between 2022 and 2023. Approval rates remained consistent, with applicants at small banks, credit unions, and finance companies being more successful in securing financing compared to other sources. Small banks and credit unions had the highest satisfaction rates among applicants, whereas those applying through online lenders were the least satisfied.
Aside from insights on business performance and financing, this report also delves into special areas such as payment details, COVID-19 Economic Injury Disaster Loan debt, and the relationships between businesses and financial service providers.
