Report: 70% of Small Businesses Affected by Declining Sales, Credit Demand Rises


WILMINGTON – The need for capital is increasing as the demand for credit reaches its highest level since 2010.

“Almost a third of small business owners use their personal savings to finance their business,” said one of the country’s fastest growing banks, based in Wilmington. Bank of live oaks, in its quarterly activity report BusinessPulse, published Thursday.

At the same time, over 70% of businesses also report a negative impact on their sales, with half of small businesses reporting supply chain disruptions.

The surge in demand for credit comes even as the United States provides more than $ 600 billion in loans to small businesses through the Paycheck Protection Plan.

However, the news is not all bad. Long-term expectations are somewhat optimistic, according to the company, with around 76% of business owners planning to maintain or grow their business over the next five years.

“We know the world has changed dramatically over the past 90 days, and the banking industry has a very important role to play in providing capital to small businesses to help them get through this ordeal,” said Live Oak president. Bank, Huntley Garriott, in a statement.

BusinessPulse provides detailed analysis and reports on sentiment for small businesses, including economic conditions, economic confidence, and credit outlook for small and medium-sized businesses.

Barlow Research surveys more than 2,800 companies in the United States each year to gather current perspectives and draws on 10 years of data to provide in-depth research.

Launched in 2009, Live Oak Bank, a subsidiary of Live Oak Bancshares Inc., is one of the leading originators of small business loans in the country.

To date, he has loaned more than $ 9 billion to small business owners nationwide.

Live Oak also founded the cloud-based lending platform nCino in 2012 and then spun it out as an independent business.

Live Oak Bancshares Named Top NC Company on Fortune’s 100 ‘Fastest Growing Companies’ List

Wilmington nCino Unicorn processes over $ 30 billion in paycheck protection loans