According to a new 10,000 Small Businesses Voices survey, 84% of small business owners fear the Federal Reserve’s new bank capital requirements will worsen credit access challenges.

For many small businesses, accessing the necessary capital to grow and scale their business has never been more difficult. According to a Goldman Sachs 10,000 Small Businesses Voices survey, 77% of small business owners are concerned about their ability to access capital they need to run and grow their businesses. For minority-owned businesses, the problem is even more stark. 

• 84% of Hispanic business owners are concerned with their ability to access capital.
• 88% of Black business owners are concerned with their ability to access capital.

Interest rates have jumped and lending has tightened as the Federal Reserve has raised interest rates to a 20-year high in an ongoing effort to curb inflation and reduce demand.

For small business owners who have applied for a new business loan over the past year (28%), 70% reported it was difficult to access affordable capital – an increase from 61% in April.  76% say difficulty accessing affordable capital has negatively impacted their business and 73% say rising interest rates are having a negative impact on their business.

Now, the Federal Reserve has proposed new rules that would make the cost of and access to capital even harder – the Basel III Endgame. These proposed rules will hurt small businesses. It’s time to stop the squeeze.

See our latest press release and survey data. 
 

Gwen Jimmere of Naturalicious
Livonia, Michigan

Silvia Lucci of Luhv Foods
Philadelphia, Pennsylvania