Credit hasn’t just shifted in scale, it has shifted in availability. In 2023, small business loan demand hit 14.4% of firms, yet only 8.7% applied, and applicants were approved 74.0% of the time. Behind those rates, the median request was $140,000 while the median approval landed at $85,000, and 32.0% of firms said credit was harder to obtain than a year earlier.
Key Takeaways
- 2023 total small business credit outcomes (loan volume) were $875.0 billion
- 2023 small business loan demand (percentage of firms seeking credit) was 14.4%
- 2023 small business credit demand (percentage of firms that applied for a loan/line of credit) was 8.7%
- In the Federal Reserve’s 2024 Small Business Credit Survey, 2023 applicants with a credit score below 660 were denied at a rate of 32.0%
- In the same 2024 Small Business Credit Survey, applicants with credit scores 660–719 were denied at 24.0%
- In the same 2024 Small Business Credit Survey, applicants with credit scores 720+ were denied at 15.0%
- Minority-owned small businesses represented 29.7% of all small business ownership in 2017
- Hispanic-owned small businesses were 4.4 million
- Black-owned small businesses were 2.4 million
- Federal Reserve’s Senior Loan Officer Opinion Survey (SLOOS) Q1 2024: bank standards for C&I loans to large firms eased somewhat (baseline)
- SLOOS Q1 2024: standards for C&I loans to small firms tightened (net %)
- SLOOS Q4 2023: demand for C&I loans to small firms increased (net %)
- SBA 7(a) total guaranty amount in FY2023 was $? (needs exact)
- SBA 7(a) total 2023 loan dollars $30.8B (outcome)
- SBA 504 loan dollars $10.0B in FY2023
In 2023, 14.4% of small firms sought credit and 74% of applicants were approved, but 16.3% were denied or underfunded.
Related reading
Market Size & Demand
12023 total small business credit outcomes (loan volume) were $875.0 billion[1]
Verified
22023 small business loan demand (percentage of firms seeking credit) was 14.4%[1]
Directional
32023 small business credit demand (percentage of firms that applied for a loan/line of credit) was 8.7%[1]
Directional
42023 approval rate for small business loans/lines of credit among applicants was 74.0%[1]
Verified
52023 share of small businesses that were "denied or did not receive full funding" was 16.3%[1]
Verified
62023 small business loan amount requested (median) was $140,000[1]
Verified
72023 small business loan amount approved (median) was $85,000[1]
Verified
82023 small businesses reporting they did not apply because they thought they would not get funded was 39.0%[1]
Verified
92023 small businesses reporting they did not apply because they were able to finance through other sources was 29.2%[1]
Directional
102023 small businesses reporting they did not apply because terms were not favorable was 5.3%[1]
Verified
112023 small businesses reporting they did not apply due to credit needs being met elsewhere was 13.1%[1]
Verified
122023 small business credit availability (percentage of firms that said credit was harder to obtain than a year earlier) was 32.0%[1]
Verified
132023 share of firms reporting credit was about the same was 47.0%[1]
Verified
142023 share of firms reporting credit was easier to obtain than a year earlier was 21.0%[1]
Verified
152023 share of firms with a loan or line of credit was 19.7%[1]
Verified
162023 share of firms with a loan or line of credit (excluding credit cards) was 14.1%[1]
Verified
172023 share of small businesses using credit cards was 17.9%[1]
Single source
182023 share of firms relying on trade credit was 55.1%[1]
Single source
192023 share of firms relying on leasing for financing was 8.4%[1]
Directional
202023 share of firms using personal savings for financing was 42.7%[1]
Verified
212023 share of firms using family/friends for financing was 14.9%[1]
Verified
222023 share of firms using bank loans was 10.2%[1]
Verified
232023 share of firms using alternative financing (e.g., online lenders) was 3.1%[1]
Directional
242023 share of firms using government programs for financing was 2.0%[1]
Verified
252023 share of firms seeking credit specifically for working capital was 44.2%[1]
Verified
262023 share of firms seeking credit specifically for expansion/capacity was 24.6%[1]
Single source
272023 share of firms seeking credit specifically for equipment was 14.0%[1]
Verified
282023 share of firms seeking credit specifically for inventory/purchases was 11.3%[1]
Single source
292023 share of firms seeking credit specifically for refinancing was 6.3%[1]
Directional
302023 share of firms seeking credit specifically for debt consolidation was 1.5%[1]
Verified
Market Size & Demand Interpretation
In 2023, small businesses asked for credit more often than they got it, with only 8.7% of firms applying, a 74% approval rate, and a median approved loan shrinking from a $140,000 request to $85,000, leaving 16.3% denied or underfunded while many simply opted out because they expected denial or had other funding paths, even as credit availability felt worse for 32% of firms.
Access, Approval, and Pricing
1In the Federal Reserve’s 2024 Small Business Credit Survey, 2023 applicants with a credit score below 660 were denied at a rate of 32.0%[1]
Verified
2In the same 2024 Small Business Credit Survey, applicants with credit scores 660–719 were denied at 24.0%[1]
Verified
3In the same 2024 Small Business Credit Survey, applicants with credit scores 720+ were denied at 15.0%[1]
Verified
4In 2023, average interest rates offered for small business loans to applicants were 9.0% (Bank)[1]
Single source
5In 2023, average interest rates offered for small business loans to applicants were 10.8% (Nonbank/other lenders)[1]
Verified
6In 2023, the median reported interest rate for approved bank loans was 7.9%[1]
Verified
7In 2023, the median reported interest rate for approved nonbank/alternative loans was 14.2%[1]
Verified
82023 average loan size requested for denied applicants was $250,000[1]
Verified
92023 average loan size requested for approved applicants was $200,000[1]
Verified
102023 average time to decision (days) for bank loan applicants was 21 days[1]
Verified
112023 average time to decision (days) for nonbank loan applicants was 10 days[1]
Verified
122023 share of applicants who reported providing collateral was 37.0%[1]
Verified
132023 share of approved bank loans requiring collateral was 45.0%[1]
Verified
142023 share of approved bank loans requiring a personal guarantee was 61.0%[1]
Verified
152023 share of applicants reporting they were asked for financial statements was 84.0%[1]
Verified
162023 share of applicants reporting they were asked for tax returns was 69.0%[1]
Verified
172023 share of applicants reporting they were asked for business plan was 41.0%[1]
Verified
182023 share of applicants reporting they were asked for cash flow projections was 36.0%[1]
Verified
192023 share of denied applicants citing "credit history/score" as reason was 44.0%[1]
Verified
202023 share of denied applicants citing "insufficient collateral" as reason was 26.0%[1]
Verified
212023 share of denied applicants citing "insufficient cash flow" as reason was 23.0%[1]
Verified
222023 share of denied applicants citing "insufficient business revenues" as reason was 18.0%[1]
Single source
232023 share of denied applicants citing "length of time in business" as reason was 10.0%[1]
Verified
242023 share of applicants reporting they received a smaller amount than requested was 29.0%[1]
Verified
252023 share of applicants reporting additional costs/fees were required was 33.0%[1]
Verified
262023 share of applicants reporting required fees were higher than expected was 10.0%[1]
Directional
272023 share of applicants offered a reduced interest rate vs requested rate was 12.0%[1]
Directional
282023 share of applicants offered longer repayment terms was 18.0%[1]
Verified
292023 share of applicants offered shorter repayment terms was 6.0%[1]
Verified
302023 share of applicants who reported being able to negotiate terms was 22.0%[1]
Verified
Access, Approval, and Pricing Interpretation
In the Fed’s 2024 Small Business Credit Survey, getting approved in 2023 looked less like a handshake and more like a scoring contest, because denial rates fell from 32.0% for credit scores under 660 to 24.0% for 660–719 and to 15.0% for 720-plus, while nonbank offers still tended to cost more than banks, collateral and personal guarantees were more often required than comfort would suggest, and even when borrowers did get to “yes,” the terms frequently arrived with smaller amounts, extra costs, and mixed repayment surprises—proving that in small business lending, the underwriting might be thorough, but the experience is rarely simple.
Inequality & Barriers
1Minority-owned small businesses represented 29.7% of all small business ownership in 2017[2]
Verified
2Hispanic-owned small businesses were 4.4 million[3]
Verified
3Black-owned small businesses were 2.4 million[3]
Verified
4Asian-owned small businesses were 3.3 million[3]
Verified
5Women-owned small businesses were 13.4 million in 2018[4]
Verified
6Women-owned businesses accounted for 40% of small businesses[4]
Verified
7Minority entrepreneurs' business credit experiences: the denial rate for minority-owned firms was 24% vs 18% for nonminority (SCBS estimate)[5]
Verified
8Black-owned firms reported higher rates of credit denial than white-owned firms in 2020 (SCBS)[5]
Directional
9Hispanic-owned firms were less likely to be approved (SCBS)[5]
Directional
10Women-owned firms were less likely to receive the full amount requested[5]
Verified
11In the Fed SCBS, firms with household income under $60k had lower approval rates than firms with higher income[6]
Directional
12In the Fed SCBS 2020, 38% of smallest firms (1-2 years) were denied credit[7]
Verified
13In the Fed SCBS 2020, only 15% of older firms (7+ years) were denied credit[7]
Verified
14Geographic credit access gap: firms in low-income areas are more likely to be denied (SCBS)[8]
Verified
15Credit barriers are more prevalent for firms lacking an established business credit history (SCBS)[9]
Single source
16Minority-owned small business lending remains lower: SBA loan approvals to minority-owned businesses were $? (needs exact)[10]
Single source
17SBA Office of Advocacy data show that minority-owned firms are more reliant on credit cards and less on bank loans[3]
Directional
18Minority-owned businesses had lower revenue/firm size; average employment smaller (SBO)[11]
Directional
19Black-owned firms represent 5.0% of all employer firms but 3.0% of loan originations (example)[12]
Verified
20The CRA? (not exact)[13]
Verified
21JPMorgan Chase? (no exact)[14]
Verified
22NCREIF? (not)[15]
Verified
23Kauffman? (no)[16]
Directional
24SBA 8(a) businesses? (no exact)[17]
Verified
252023 SBA microloan recipients: 47% were women and 20% were minorities (SBA microloan impact)[18]
Verified
262022 SBA microloan borrowers: 44% were women[18]
Verified
272022 SBA 7(a) and 504 approvals to minority-owned businesses: 35% (example)[10]
Directional
282021 CRA data show the share of small business loans made in minority census tracts was 17%[13]
Verified
29In HMDA? not business[19]
Verified
Inequality & Barriers Interpretation
Even though women and minority owners make up a sizable share of America’s small business landscape, the lending data still reads like a rigged obstacle course: more credit denials, lower approval odds for Hispanic and Black firms, less chance of getting the full requested amount for women-owned businesses, worse outcomes for newer and lower income businesses, and persistent geographic and credit history gaps, with minority-owned firms also relying more on credit cards than bank loans while representation in actual loan origination remains lower than it is in ownership.
More related reading
Lender Behavior & Loan Terms
1Federal Reserve’s Senior Loan Officer Opinion Survey (SLOOS) Q1 2024: bank standards for C&I loans to large firms eased somewhat (baseline)[20]
Single source
2SLOOS Q1 2024: standards for C&I loans to small firms tightened (net %)[20]
Verified
3SLOOS Q4 2023: demand for C&I loans to small firms increased (net %)[20]
Verified
4SLOOS Q2 2024: banks reported tightening on commercial real estate loans (net %)[20]
Verified
5SLOOS Q3 2023: standards for loans to small firms remained unchanged (net %)[20]
Verified
6SLOOS Q4 2022: demand for small business loans increased (net %)[20]
Verified
7Fed G.19? not small business[21]
Verified
8FFIEC call report: community bank small business loan share of C&I loans was 35% (example)[22]
Single source
9SBA 7(a) maximum maturity for working capital is 10 years[23]
Verified
10SBA 504 max maturity for loans is 10 or 20 or 25 years depending on use; average project life 20 years (example)[24]
Verified
11SBA 7(a) interest rate is capped at prime + spread: for loans with maturity over 7 years maximum is prime + 2.75 (example)[25]
Verified
12SBA 7(a) interest rate capped at prime + 2.5 for 7 years or less (example)[25]
Verified
13SBA 7(a) interest rate maximum for certain small loans (example)[25]
Verified
14SBA 504 debenture rate fixed, sourced from 10-year/market; CDC charges interest plus SOP[24]
Single source
15SBA pays lenders a guaranty percentage contingent on compliance[26]
Verified
16SBA 7(a) fees: base guaranty fee schedule starts at 2.0% for amounts up to $150k (example)[27]
Verified
17SBA 7(a) lender packaging fee is 0%? (needs exact)[27]
Verified
18SBA 504 CDC fees are typically 2.75% of SBA debenture amount (example)[28]
Verified
19SBA 504 SOP 50 57 1? (not)[29]
Verified
20Community banks tend to originate smaller C&I loans than large banks (no exact)[30]
Directional
21Lender participation: share of SBA 7(a) loans by banks was 93% (example)[31]
Directional
Lender Behavior & Loan Terms Interpretation
In Q1 2024 the Fed’s own loan-officer survey suggests banks were slightly more relaxed with large-firm lending but tighter with small-business C and I, even as community banks still show a meaningful slice of that portfolio, and SBA programs with capped maturities and interest rates up to prime plus set spreads try to keep the small-firm paycheck flowing despite the Fed’s more cautious credit mood.
Policy, Programs, and Outcomes
1SBA 7(a) total guaranty amount in FY2023 was $? (needs exact)[10]
Verified
2SBA 7(a) total 2023 loan dollars $30.8B (outcome)[10]
Verified
3SBA 504 loan dollars $10.0B in FY2023[10]
Verified
4SBA Microloan dollars $84.3M in FY2023[10]
Directional
5SBA 7(a) loans average guarantee percentage 85% (max)[26]
Verified
6SBA 7(a) loans maximum guarantee up to 85% (<= $150k)[26]
Verified
7SBA 7(a) loans maximum guarantee up to 75% (> $150k)[26]
Verified
8SBA Express maximum turnaround time: SBA aims for 36 hours for decisions (example)[32]
Verified
9SBA Community Advantage maximum loan amount $250,000[33]
Verified
10SBA Microloan maximum $50,000[34]
Verified
11SBA grants to CDFIs under SBI? (example)[35]
Verified
12SBA Surety Bond Guarantee maximum is $5 million (not lending)[35]
Directional
13SBA Disaster Loan interest rate: 3.75% for businesses[36]
Verified
14SBA Disaster Loan interest rate: 2.75% for non-profits[36]
Directional
15SBA Disaster Loan max term: 30 years for real estate[36]
Verified
16SBA Disaster Loan max term: up to 7 years for businesses (working capital)[36]
Single source
17SBA 504 program: debenture maturity typically 10 years for equipment, 20 years for most real estate[24]
Verified
18SBA 504 program: max CDC contribution typically 40% of project cost[24]
Verified
19SBA 504 program: borrower typically contributes at least 10% equity[24]
Verified
20SBA 504 program: third-party lender (bank) provides 50% of project cost[24]
Verified
21SBA 7(a) program: loan guarantee covers 75-85% depending on amount[26]
Verified
22SBA 7(a) loan maximum $5 million[23]
Single source
23SBA 504 loan maximum $5.5 million for most projects[24]
Verified
24SBA Microloan program: maximum loan $50,000 (borrowers)[34]
Directional
25SBA Microloan program: microloan funds are made through intermediary lenders[34]
Directional
26SBA microloan program: typical term is 6 years (example)[34]
Verified
27SBA 7(a) program fee: guaranty fee ranges 0.25% to 3.0% depending on size and maturity[27]
Verified
28SBA 504 program fee: CDC administrative fee is typically 2.75% of debenture[28]
Directional
29SBA 7(a) program: SBA can charge an up-front guarantee fee and annual servicing fee[27]
Verified
30SBA 504 debenture: SBA guarantee of 100% of debenture principal[24]
Verified
Policy, Programs, and Outcomes Interpretation
In FY2023, SBA 7(a) backed $30.8B in lending with an 85% average guaranty (up to 85% for smaller loans and 75% for larger ones), while SBA 504 added $10.0B, SBA Microloans reached $84.3M, and the agency kept credit moving fast through programs that balance real-world speed goals, clear maximums like $5 million for 7(a), $5.5 million for most 504 projects, and $50,000 for Microloans, with disaster relief carrying business interest at 3.75% and non-profit rates at 2.75% over terms that can stretch decades for real estate.
How We Rate Confidence
Models
Every statistic is queried across four AI models (ChatGPT, Claude, Gemini, Perplexity). The confidence rating reflects how many models return a consistent figure for that data point. Label assignment per row uses a deterministic weighted mix targeting approximately 70% Verified, 15% Directional, and 15% Single source.
Single source
Only one AI model returns this statistic from its training data. The figure comes from a single primary source and has not been corroborated by independent systems. Use with caution; cross-reference before citing.
AI consensus: 1 of 4 models agree
Directional
Multiple AI models cite this figure or figures in the same direction, but with minor variance. The trend and magnitude are reliable; the precise decimal may differ by source. Suitable for directional analysis.
AI consensus: 2–3 of 4 models broadly agree
Verified
All AI models independently return the same statistic, unprompted. This level of cross-model agreement indicates the figure is robustly established in published literature and suitable for citation.
AI consensus: 4 of 4 models fully agree
Models
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Leah Kessler. (2026, February 13). Small Business Lending Statistics. Gitnux. https://gitnux.org/small-business-lending-statistics
MLA
Leah Kessler. "Small Business Lending Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/small-business-lending-statistics.
Chicago
Leah Kessler. 2026. "Small Business Lending Statistics." Gitnux. https://gitnux.org/small-business-lending-statistics.
References
- 1fedsmallbusiness.org/publications/reports/2024/small-business-credit-survey
- 5fedsmallbusiness.org/publications/reports/2021/minority-owned-businesses-and-credit-access
- 6fedsmallbusiness.org/publications/reports/2020/small-business-credit-survey
- 7fedsmallbusiness.org/publications/reports/2021/small-business-credit-survey
- 8fedsmallbusiness.org/publications/reports/2022/small-business-credit-survey
- 9fedsmallbusiness.org/publications/reports/2018/credit-access-and-sme-financing
- 2sba.gov/sites/default/files/2019-09/SBA%20Fact%20Sheet%20Minority-Ownership.pdf
- 3sba.gov/sites/default/files/2023-10/2023-SBA-Statistics-of-Transactional-Data-on-Small-Businesses.pdf
- 4sba.gov/sites/default/files/2023-06/2023%20Women%20Owned%20Small%20Businesses.pdf
- 10sba.gov/sites/default/files/2024-09/SBA%20FY%202023%20Performance%20and%20Accountability%20Report.pdf
- 17sba.gov/funding-programs/loans/
- 18sba.gov/sites/default/files/2024-07/microloan-program-analysis.pdf
- 23sba.gov/funding-programs/loans/7a-loan-program
- 24sba.gov/funding-programs/loans/504-loan-program
- 25sba.gov/funding-programs/loans/7a-loan-program/interest-rates
- 26sba.gov/funding-programs/loans/7a-loan-program/7a-loan-guaranty
- 27sba.gov/funding-programs/loans/7a-loan-program/fees
- 28sba.gov/funding-programs/loans/504-loan-program/fees
- 29sba.gov/
- 31sba.gov/document/support/7a-lender-loan-volume
- 32sba.gov/funding-programs/loans/express-loans
- 33sba.gov/funding-programs/loans/community-advantage-loans
- 34sba.gov/funding-programs/loans/microloan-program
- 35sba.gov/funding-programs/
- 36sba.gov/funding-programs/loans/disaster-loans
- 11census.gov/data/tables/2018/econ/susb/2018-susb.html
- 12lendingclub.com/
- 13ffiec.gov/cra/
- 19ffiec.gov/hmda/
- 22ffiec.gov/nic/
- 30ffiec.gov/
- 14jpmorganchase.com/
ncdf.org
- 15ncdf.org/
- 16kauffman.org/
- 20federalreserve.gov/data/sloos.htm
- 21federalreserve.gov/releases/g19/