WASHINGTON, March 8, 2022 /PRNewswire/ — Two years into the pandemic, more than half of small businesses say they are in fair or poor financial condition, according to a meta-analysis by GOALmentors for American small businesses and resource partner of the US Small Business Administration.
Most small businesses did not apply for a loan, although 54% of entrepreneurs who did not apply for a loan needed funds. Among small business owners who requested external financing, 63% used the funds to meet basic needs such as salaries, rent and inventory costs, rather than to expand their business.
When the loans were issued, small businesses struggled to receive the full financing they needed. Even among small businesses with low credit risk, only 38% received the financing they were looking for, down from 62% at pre-pandemic levels.
Despite these lending issues, there is cause for optimism as small business loan approvals are up nearly 10% from 2020 levels across all types of financial institutions.
SCORE can guide small business owners looking for loans and financing options
“Small business owners are overwhelmed with a number of difficult issues,” said SCORE’s CEO. Bridget Weston. “Whether it’s labor shortages, supply chain issues, rising cost of goods or general economic uncertainty, entrepreneurs are struggling. However, we want small business owners know they don’t have to do it alone. SCORE has a number of resources to help overcome these obstacles to help you succeed.”
Entrepreneur and client SCORE chris rourkfounder of Miami-based on VOLTA ion, reflects on how SCORE has helped him secure his finances and keep his business running despite ongoing economic challenges: “When everything seems to be against you, that’s when the strongest foundations are Having my SCORE mentor by my side to shine the light on new ideas has opened up a world of opportunities to pursue, but it’s yourself who has to have the courage to work hard and follow those leads to succeed. “
SCORE mentors can provide free advice on managing finances, the loan application process and which loan is best for your business.
To find a mentor to help your small business, visit SCORE.org/find-mentor.
Since 1964, SCORE has helped 11 million entrepreneurs start, grow or troubleshoot a business. SCORE’s 10,000 volunteers provide free mentorship, workshops and educational services to more than 1,500 communities nationwide, creating 45,027 new businesses and 74,535 non-ownership jobs in 2020 alone. Follow @SCOREMentors on Facebook, instagram and LinkedIn.
Funded [in part] through a cooperative agreement with the US Small Business Administration.