Once again, the National Federation of Independent Business (NFIB) found that in August weak sales, not the availability of credit, is the biggest problem facing small business owners.
Four percent reported financing as their #1 business problem, compared to 25 percent which said sales growth was the biggest obstacle.
Thirty-two percent of all owners reported borrowing on a regular basis, up 2 points from July, but only 4 points above the record low.
As “weak sales [remained] top business problem… new investments in new equipment or new workers are not likely to “pay off” by generating enough additional earnings to repay the loan required to finance the investment.”
Only 5% of small business owners said that this is a good time to expand their facilities.
Given these conditions, small business optimism fell for the sixth month in a row in August, declining 1.8 points to 88.1.
See the full NFIB report.