Report: 70% of small businesses hit by falling sales, demand for credit increases

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

“Nearly a third of small business owners are using their personal savings to finance their business,” one of the country’s fastest growing banks, Wilmington-based Live Oak Bank, said in its report. quarterly activity. BusinessPulse, released Thursday.

Meanwhile, more than 70% of businesses are also reporting a negative impact on sales – with half of small businesses reporting supply chain disruptions.

The surge in credit demand comes even as the United States provides more than $600 billion in small business loans 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,” said Live’s chairman. Oak Bank, Huntley Garriott, in a statement.

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

Barlow Research surveys more than 2,800 companies across the United States each year to gather current insights 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 nation’s leading small business loan originators.

To date, it has loaned over $9 billion to small business owners nationwide.

Live Oak also founded nCino, the cloud-based lending platform in 2012, then spun it into an independent company.

Live Oak Bancshares is the first NC company on Fortune’s 100 “Fastest Growing Companies” list

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