Credit Crunch Begins To Ease For Your Bottom Line

NFIB economist Bill Dunkelberg says just 4% of small businesses cite financing as a top concern

The credit crunch that hit small businesses particularly hard during the recession has begun to ease, said NFIB's chief economist in the latest Your Bottom Line With Bill Dunkelberg.

Over 20% of small business owners have used personal assets such as their own homes and other real estate to directly finance or collateralize business activities. When home prices fell during the recession, that resulted in about 18% owning at least one "upside down property."

But in a recent NFIB survey, just 4% of business owners say financing and credit is their top business problem, compared to 22% citing poor sales and 20% excessive regulation.

Dunkelberg sees positive signs on the horizon.

"Credit is going to be easier to get, interest rates are going to be low, so don't be afraid to go out and ask your bank for a loan," Dunkelberg said.

He also urged business owners to shop around for the best rates.

"There are 6,000 independent banks out there," Dunkelberg said. "If one can't help you, there's probably someone out there who can, so give it a shot." 

NFIB's web series Your Bottom Line With Bill Dunkelberg educates small business owners on what drives the economy and how economic issues affect their businesses. William Dunkelberg, one of the nation's top experts on small business, hosts the series. New videos are posted each week and all episodes are archived for later viewing.

About NFIB
NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through a unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of members to own, operate and grow their businesses. For more information visit NFIB online.

About William Dunkelberg
William C. Dunkelberg has been chief economist for NFIB since 1971. He is currently professor of Economics at the School of Business and Management, Temple University, and served as dean from 1987-94. He was director of the Center for the Advancement and Study of Entrepreneurship from 1991-94.

Dunkelberg is a nationally recognized authority on small business, entrepreneurship, consumer behavior and consumer credit policy. He has been an advisor to cabinet officers, a member of the Consumer Advisory Council of the Federal Reserve System and is a past president of the National Association of Business Economists. He has chaired the Census Advisory Committee and is an elected member of the Conference of Business Economists and the National Economic Issues Council. He is also a frequent contributor to broadcast and cable news programs and is often quoted in leading newspapers and magazines.