Fed Launches 2021 Small Business Credit Survey
The Federal Reserve’s 2021 Small Business Credit Survey opened this week for responses. The annual survey focuses on gathering information on how and why small businesses seek financing, an area where data historically have been limited.
This year, the Fed aims to increase survey participation among several groups and sectors, including finance and insurance, health care and education, and firms with 1-to-4 employees. By taking the survey, small businesses contribute to data that directly informs the Fed, federal government agencies, service providers, and others—ultimately benefiting business.
The 10-minute survey is open to businesses currently in operation, those recently closed, and those about to launch. The questions ask about business conditions, financing needs, and the effects of the pandemic on business. All responses are confidential. The survey closes Nov. 19, 2021.
Small business owners can take the 2021 survey here.
More than 15,000 respondents representing firms with 500 or less employees participated in the 2020 SBCS. From their responses, the survey reported:
- Firms experiencing financial difficulty during the pandemic frequently turned to their own personal funds for help, suggesting that credit availability continued to be a problem despite the introduction of emergency programs like the Paycheck Protection Program.
- Sixty-four percent of firms would apply for additional government-provided assistance if it were made available, again suggesting strong demand for emergency credit.
- Meanwhile, the share of applicant firms that received all the financing they sought declined from 51 percent in 2019 to 37% in 2020.
More information is available at FedSmallBusiness.org.
Published by The Business Journal, Youngstown, Ohio.