NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Dan Murray with NFIB-Kansas said a survey conducted last month shows concern about being able to access credit among their membership.
"The day to day operations of our small business owners rely on the financial system," Murray said. "Clearly, many of our Kansas job creators are struggling against the inflation that's ongoing and the labor problems that we've seen, but now rising interest rates are presenting yet another challenge to our small business owners. That hits them in the pocketbook when they go to borrow money for the operations of their business."
It's not that institutions are saying no, the terms just aren't as favorable.
"Of the small business owners who were seeking lending, over half, 58% who borrowed or tried to borrow reported higher interest rates as their largest complaint in accessing financing. I think they are still able to access financing, but nearly 60% are complaining that this is creating a problem for access."
Small business owners are sticking with their hometown banks at this point.
"Ninety-seven percent of the owners have not changed their primary financial institution that they have used in the last three months," Murray said. "As it relates to banking location and size, I thought this was interesting, 42% of small business owners visit their bank in person once or more a week."
Small business owners are relatively optimistic about their businesses, too. Twenty-six percent of owners reported the current financial state of their business as excellent, 45% reported good and another 25% reported okay. Only 5% said poor.
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