SOURCE: Small Business Research Board

March 04, 2009 12:27 ET

More Small Businesses Report Decrease in Lines of Credit With Lenders, Says Latest Small Business Research Board Study

Fourth of a Series

BUFFALO GROVE, IL--(Marketwire - March 4, 2009) - Small business owners and managers report that increasingly difficult access to credit and a decrease in current lines of credit are impacting their businesses, according to a nationwide Small Business Research Board (SBRB) study.

The report issued today indicates 41% of those responding to the SBRB/Business Today Small Business Lending Relationship and Loan Requirements Study contend their lines of credit have decreased, while 19.8% report increases.

The SBRB report, co-sponsored by Business Today Magazine, solely focused on examining issues related to small businesses and their relationships with lenders. More than 500 owners and managers throughout the U.S. participated in the study.

The study also indicated that of those businesses that have increased their loan levels during the past six months, 35% find their access to credit more difficult, 12% find access to credit is easier and 5% find it impossible.

This is the fourth in a series of four SBRB/Business Today reports examining small business lending relationships and loan needs. The first report indicated that the relationships small businesses have with their principal lenders appear to be good and even getting better; however, the 45% of owners and managers that use their residence as collateral said they have experienced a decrease in loan limits up to 10%.

The second report focused on overall 2008 loan needs and anticipated 2009 credit requirements. The report found that 25% said they will increase the dollar value of their loan requests or raise the limit on their line of credit in 2009. This is an increase of one point from the 26% of small businesses that increased their loans or line of credit in 2008. 58% reported that their line of credit will remain unchanged.

The third report conveyed information about the use of residences as collateral for business loans. Of those business owners indicating that they use their home as collateral, 50.4% said their lenders had amended their borrowing levels with 56% of the respondents receiving a decrease in credit.

Subsequent reports will detail findings in seven distinct industries.

Business Today Magazine is dedicated to serving the information needs of owners and managers of small businesses. The primary goals of the quarterly publication, based in Buffalo Grove, Ill., are to inform and educate readers by providing timely, useful information that will help readers both contend with the daily demands of running their businesses as well as provide insight on achieving long-term growth. Business Today workshops are also conducted throughout the U.S. to provide educational resources for entrepreneurs and their managers. Their Web site can be found at www.ipabusinesstodaymagazine.com.

The Small Business Research Board ascertains and reports attitudes on a wide variety of national and international issues that impact small businesses. These studies benefit owners and managers and also provide opportunities for third parties to gain real time insight into the attitudes of small businesses.

The latest information about the Small Business Research Board can be found at www.ipasbrb.net.

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