SBA 504 Loan Interest Rates
Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.
For the second consecutive quarter, small businesses throughout Florida said the top issue facing their business is access to capital.
According to the Florida Chamber of Commerce's fourth quarter Small Business Index Survey, 31% of respondents stated accessing capital was “the single most important issue” facing their business today (up from 25% in the prior quarter).
This quarter's results continued a trend seen from last quarter, as capital becomes an increasing challenge and concern to small businesses. Economic uncertainty was the second most popular answer, with 28% - a six percentage point increase from the previous quarter results.
More than 40% of businesses responding indicated they were not able to obtain financing in the past six months - this is up from 36% in the prior quarter. In addition, 46% of small business owners said they expected financing to be more difficult to obtain in the near future, up 6% over last quarter.
Only 10% of the nearly 600 survey respondents said they were able to obtain necessary financing and capital. These responses, significant increases from the previous quarter, indicate that small business owners are looking to expand their operations, either because of or in expectation of an improving economy, but are being turned down for financing necessary to fund expansion.
The economy and its impact on small business profits received mixed reviews with small business leaders reporting both higher (36%) and lower (32%) sales over last quarter. Thirty-seven percent of respondents said their business was “better/much better off today than six months ago,” a five percentage point decrease over last quarter and 20% of respondents stated their business was worse/much worse off, a two percentage point increase over last quarter.
Small businesses remain optimistic about the future of the economy, however, with 68% of respondents stating they expect company sales to increase over the next 12 months, on par with last quarter's response (69%). The optimism regarding the economy explains why small businesses are seeking additional capital for expansion, despite mixed reviews on existing profit gains.
Small Business Employment Outlook:
• 29% of respondents expect to hire in the next six months.
• 3% expect to lay off employees in the next six months.
• 69% said economic uncertainty and lack of sales are the leading obstacles preventing their small business from hiring new employees.
While a plurality of business owners see light on the horizon and are planning for an improved economy, challenges do exist in the forecasts. A tightening credit market appears to be preventing entrepreneurs from taking full advantage of these improving economic conditions - a negative force against job creation.
This continues to bear true as the percentages of businesses better off and seeing economic improvement have declined from previous quarters.
The Florida Chamber's Small Business Index Survey was conducted electronically Sept. 9 through Sept. 27, 2013, and received 594 unique responses.
For more information about the survey, visit small business index survey.
For more information about the Florida Chamber of Commerce, visit www.flchamber.com.
