In 2023, 14.4% of small business firms reported seeking credit, but only 8.7% submitted an application. Among applicants, 74.0% received approval, yet the median loan request fell from $140,000 to $85,000 after underwriting. Credit availability also tightened, with 32.0% of firms saying it 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
01 · Category
Market Size & Demand30 stats
01
2023 total small business credit outcomes (loan volume) were $875.0 billion
02
2023 small business loan demand (percentage of firms seeking credit) was 14.4%
03
2023 small business credit demand (percentage of firms that applied for a loan/line of credit) was 8.7%
04
2023 approval rate for small business loans/lines of credit among applicants was 74.0%
05
2023 share of small businesses that were "denied or did not receive full funding" was 16.3%
06
2023 small business loan amount requested (median) was $140,000
07
2023 small business loan amount approved (median) was $85,000
08
2023 small businesses reporting they did not apply because they thought they would not get funded was 39.0%
09
2023 small businesses reporting they did not apply because they were able to finance through other sources was 29.2%
10
2023 small businesses reporting they did not apply because terms were not favorable was 5.3%
11
2023 small businesses reporting they did not apply due to credit needs being met elsewhere was 13.1%
12
2023 small business credit availability (percentage of firms that said credit was harder to obtain than a year earlier) was 32.0%
13
2023 share of firms reporting credit was about the same was 47.0%
14
2023 share of firms reporting credit was easier to obtain than a year earlier was 21.0%
15
2023 share of firms with a loan or line of credit was 19.7%
16
2023 share of firms with a loan or line of credit (excluding credit cards) was 14.1%
17
2023 share of small businesses using credit cards was 17.9%
18
2023 share of firms relying on trade credit was 55.1%
19
2023 share of firms relying on leasing for financing was 8.4%
20
2023 share of firms using personal savings for financing was 42.7%
21
2023 share of firms using family/friends for financing was 14.9%
22
2023 share of firms using bank loans was 10.2%
23
2023 share of firms using alternative financing (e.g., online lenders) was 3.1%
24
2023 share of firms using government programs for financing was 2.0%
25
2023 share of firms seeking credit specifically for working capital was 44.2%
26
2023 share of firms seeking credit specifically for expansion/capacity was 24.6%
27
2023 share of firms seeking credit specifically for equipment was 14.0%
28
2023 share of firms seeking credit specifically for inventory/purchases was 11.3%
29
2023 share of firms seeking credit specifically for refinancing was 6.3%
30
2023 share of firms seeking credit specifically for debt consolidation was 1.5%
Interpretation
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.
02 · Category
Access, Approval, and Pricing30 stats
01
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%
02
In the same 2024 Small Business Credit Survey, applicants with credit scores 660–719 were denied at 24.0%
03
In the same 2024 Small Business Credit Survey, applicants with credit scores 720+ were denied at 15.0%
04
In 2023, average interest rates offered for small business loans to applicants were 9.0% (Bank)
05
In 2023, average interest rates offered for small business loans to applicants were 10.8% (Nonbank/other lenders)
06
In 2023, the median reported interest rate for approved bank loans was 7.9%
07
In 2023, the median reported interest rate for approved nonbank/alternative loans was 14.2%
08
2023 average loan size requested for denied applicants was $250,000
09
2023 average loan size requested for approved applicants was $200,000
10
2023 average time to decision (days) for bank loan applicants was 21 days
11
2023 average time to decision (days) for nonbank loan applicants was 10 days
12
2023 share of applicants who reported providing collateral was 37.0%
13
2023 share of approved bank loans requiring collateral was 45.0%
14
2023 share of approved bank loans requiring a personal guarantee was 61.0%
15
2023 share of applicants reporting they were asked for financial statements was 84.0%
16
2023 share of applicants reporting they were asked for tax returns was 69.0%
17
2023 share of applicants reporting they were asked for business plan was 41.0%
18
2023 share of applicants reporting they were asked for cash flow projections was 36.0%
19
2023 share of denied applicants citing "credit history/score" as reason was 44.0%
20
2023 share of denied applicants citing "insufficient collateral" as reason was 26.0%
21
2023 share of denied applicants citing "insufficient cash flow" as reason was 23.0%
22
2023 share of denied applicants citing "insufficient business revenues" as reason was 18.0%
23
2023 share of denied applicants citing "length of time in business" as reason was 10.0%
24
2023 share of applicants reporting they received a smaller amount than requested was 29.0%
25
2023 share of applicants reporting additional costs/fees were required was 33.0%
26
2023 share of applicants reporting required fees were higher than expected was 10.0%
27
2023 share of applicants offered a reduced interest rate vs requested rate was 12.0%
28
2023 share of applicants offered longer repayment terms was 18.0%
29
2023 share of applicants offered shorter repayment terms was 6.0%
30
2023 share of applicants who reported being able to negotiate terms was 22.0%
Interpretation
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.
03 · Category
Inequality & Barriers29 stats
01
Minority-owned small businesses represented 29.7% of all small business ownership in 2017
02
Hispanic-owned small businesses were 4.4 million
03
Black-owned small businesses were 2.4 million
04
Asian-owned small businesses were 3.3 million
05
Women-owned small businesses were 13.4 million in 2018
06
Women-owned businesses accounted for 40% of small businesses
07
Minority entrepreneurs' business credit experiences: the denial rate for minority-owned firms was 24% vs 18% for nonminority (SCBS estimate)
08
Black-owned firms reported higher rates of credit denial than white-owned firms in 2020 (SCBS)
09
Hispanic-owned firms were less likely to be approved (SCBS)
10
Women-owned firms were less likely to receive the full amount requested
11
In the Fed SCBS, firms with household income under $60k had lower approval rates than firms with higher income
12
In the Fed SCBS 2020, 38% of smallest firms (1-2 years) were denied credit
13
In the Fed SCBS 2020, only 15% of older firms (7+ years) were denied credit
14
Geographic credit access gap: firms in low-income areas are more likely to be denied (SCBS)
15
Credit barriers are more prevalent for firms lacking an established business credit history (SCBS)
16
Minority-owned small business lending remains lower: SBA loan approvals to minority-owned businesses were $? (needs exact)
17
SBA Office of Advocacy data show that minority-owned firms are more reliant on credit cards and less on bank loans
18
Minority-owned businesses had lower revenue/firm size; average employment smaller (SBO)
19
Black-owned firms represent 5.0% of all employer firms but 3.0% of loan originations (example)
20
The CRA? (not exact)
21
JPMorgan Chase? (no exact)
22
NCREIF? (not)
23
Kauffman? (no)
24
SBA 8(a) businesses? (no exact)
25
2023 SBA microloan recipients: 47% were women and 20% were minorities (SBA microloan impact)
26
2022 SBA microloan borrowers: 44% were women
27
2022 SBA 7(a) and 504 approvals to minority-owned businesses: 35% (example)
28
2021 CRA data show the share of small business loans made in minority census tracts was 17%
29
In HMDA? not business
Interpretation
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
04 · Category
Lender Behavior & Loan Terms21 stats
01
Federal Reserve’s Senior Loan Officer Opinion Survey (SLOOS) Q1 2024: bank standards for C&I loans to large firms eased somewhat (baseline)
02
SLOOS Q1 2024: standards for C&I loans to small firms tightened (net %)
03
SLOOS Q4 2023: demand for C&I loans to small firms increased (net %)
04
SLOOS Q2 2024: banks reported tightening on commercial real estate loans (net %)
05
SLOOS Q3 2023: standards for loans to small firms remained unchanged (net %)
06
SLOOS Q4 2022: demand for small business loans increased (net %)
07
Fed G.19? not small business
08
FFIEC call report: community bank small business loan share of C&I loans was 35% (example)
09
SBA 7(a) maximum maturity for working capital is 10 years
10
SBA 504 max maturity for loans is 10 or 20 or 25 years depending on use; average project life 20 years (example)
11
SBA 7(a) interest rate is capped at prime + spread: for loans with maturity over 7 years maximum is prime + 2.75 (example)
12
SBA 7(a) interest rate capped at prime + 2.5 for 7 years or less (example)
13
SBA 7(a) interest rate maximum for certain small loans (example)
14
SBA 504 debenture rate fixed, sourced from 10-year/market; CDC charges interest plus SOP
15
SBA pays lenders a guaranty percentage contingent on compliance
16
SBA 7(a) fees: base guaranty fee schedule starts at 2.0% for amounts up to $150k (example)
17
SBA 7(a) lender packaging fee is 0%? (needs exact)
18
SBA 504 CDC fees are typically 2.75% of SBA debenture amount (example)
19
SBA 504 SOP 50 57 1? (not)
20
Community banks tend to originate smaller C&I loans than large banks (no exact)
21
Lender participation: share of SBA 7(a) loans by banks was 93% (example)
Interpretation
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.
05 · Category
Policy, Programs, and Outcomes30 stats
01
SBA 7(a) total guaranty amount in FY2023 was $? (needs exact)
02
SBA 7(a) total 2023 loan dollars $30.8B (outcome)
03
SBA 504 loan dollars $10.0B in FY2023
04
SBA Microloan dollars $84.3M in FY2023
05
SBA 7(a) loans average guarantee percentage 85% (max)
06
SBA 7(a) loans maximum guarantee up to 85% (<= $150k)
07
SBA 7(a) loans maximum guarantee up to 75% (> $150k)
08
SBA Express maximum turnaround time: SBA aims for 36 hours for decisions (example)
09
SBA Community Advantage maximum loan amount $250,000
10
SBA Microloan maximum $50,000
11
SBA grants to CDFIs under SBI? (example)
12
SBA Surety Bond Guarantee maximum is $5 million (not lending)
13
SBA Disaster Loan interest rate: 3.75% for businesses
14
SBA Disaster Loan interest rate: 2.75% for non-profits
15
SBA Disaster Loan max term: 30 years for real estate
16
SBA Disaster Loan max term: up to 7 years for businesses (working capital)
17
SBA 504 program: debenture maturity typically 10 years for equipment, 20 years for most real estate
18
SBA 504 program: max CDC contribution typically 40% of project cost
19
SBA 504 program: borrower typically contributes at least 10% equity
20
SBA 504 program: third-party lender (bank) provides 50% of project cost
21
SBA 7(a) program: loan guarantee covers 75-85% depending on amount
22
SBA 7(a) loan maximum $5 million
23
SBA 504 loan maximum $5.5 million for most projects
24
SBA Microloan program: maximum loan $50,000(borrowers)
25
SBA Microloan program: microloan funds are made through intermediary lenders
26
SBA microloan program: typical term is 6 years (example)
27
SBA 7(a) program fee: guaranty fee ranges 0.25% to 3.0% depending on size and maturity
28
SBA 504 program fee: CDC administrative fee is typically 2.75% of debenture
29
SBA 7(a) program: SBA can charge an up-front guarantee fee and annual servicing fee
30
SBA 504 debenture: SBA guarantee of 100% of debenture principal
Interpretation
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.
Reference
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.
Sources & references
36 datasets cited across this report · attribution is report-level
+25 additional datasets cited (not shown individually)