Trust and Access to Capital 2022

TRUST & ACCESS TO CAPITAL

The last two years have taken a tremendous toll on small businesses and challenges persist for many entrepreneurs. Small businesses that do not have a financial cushion or a source of external financing remain at risk. 

We surveyed 2,500+ small business owners to assess confidence in their ability to fund common business needs and measure their trust in various sources of capital.

HERE’S WHAT WE FOUND:

• Most Entrepreneurs of Color Lack Confidence to Fund an Unexpected $5,000 Business Expense
  
  
• Most Entrepreneurs of Color Lack Confidence They Could Finance a Contract or Purchase Order
  
  
• Most Respondents -- Especially Entrepreneurs of Color --Lack Confidence They Could Fund a New Marketing Program 
  
  
• Few Respondents are Aware of Community Financial Institutions (CDFIs and MDIs) or FinTech Lenders
  
  
• Most Respondents Trust the SBA

HERE’S WHAT IT MEANS:

The SBA has an opening to use its unprecedented reach and new-found trust among small business owners to partner and connect Main Street entrepreneurs to sources of capital and guidance that can help them grow, hire, and achieve their American Dream. Community Financial Institutions -- including CDFIs and minority-owned banks -- and responsible Fintech lenders are well-positioned to meet the small dollar financing needs of most small businesses.