Poll: Small Businesses Support Increased Oversight to Preserve Financial Health of our Nation's Banks
Latest poll reveals small businesses are feeling negatively impacted by recent banking closures
Washington, DC - Today, Small Business Majority released a new opinion poll revealing that in the past year, 55% of small businesses have found it harder to obtain new capital to grow or operate their business.
The recent banking closures have impacted many small businesses across the country, with 66% of America's job creators sharing concern and 34% reporting that their financial institution is restricting lending due to the banking turmoil. Although we have yet to understand these closures' long-term impact and reach, the poll confirms that the disruptions have created a new worry for small businesses around their access to capital.
Despite enduring rising inflation, workforce challenges, and growing anti-competitive business practices, small businesses remain resilient. But equitable access to capital from banks and other traditional financial institutions has always been a significant challenge for small and midsize businesses that still need help managing financial uncertainty. Even though entrepreneurs hope to grow their businesses, this survey found that higher interest rates over the past year have prevented 72% of small businesses from seeking new capital or taking on more debt on existing lines of credit and/or credit cards.
"We should be able to do both: provide access to capital for under-resourced small businesses and run a sustainable, properly regulated financial system," said John Arensmeyer, Founder & CEO of Small Business Majority. "Our polling shows that the majority of small businesses support more robust oversight of our banking systems that will shore up confidence, maintain the flow of capital to smaller, more underserved customers, and hold the line against even more big-bank consolidation, which would reduce the capital available to small, under-resourced businesses."
In fact, 62% of small businesses support increased oversight, including capital reserve requirements and strengthening investment portfolios. Additionally, to restore confidence in long-term banking, almost 7 in 10 support increasing the level of Federal Deposit Insurance Corporation (FDIC) insurance on commercial bank deposits above the current $250,000.
This poll reflects a national survey of 312 small business owners and decision-makers in the United States. The poll was an online survey conducted on SurveyMonkey on April 2, 2023. The margin of error is +/- 6%. To read the full report, click here.
About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.