U.S. business funding data
Small Business Financing Statistics 2026
A current snapshot of how U.S. small businesses use financing, why they apply and what happens after they do.
Updated October 9, 2026
At a glance
These figures come from the Federal Reserve's 2026 Report on Employer Firms, based on responses collected from September through November 2025. The survey covers businesses with 1 to 499 employees across the United States.
Read the Federal Reserve report86%
of employer firms use financing regularly
Credit cards and loans were the most common products used by firms in the survey.
Federal Reserve, March 202660%
applied for financing in the prior 12 months
Financing demand remained a normal part of operating and growing many small businesses.
Federal Reserve, March 202656%
applied to meet operating expenses
Another 46% sought financing for an expansion or a new opportunity.
Federal Reserve, March 202642%
received all the financing they sought
Thirty-six percent received some or most of what they sought, while 22% received none.
Federal Reserve, March 202638%
applied for a loan, line of credit, or merchant cash advance
That share was nearly unchanged from the Federal Reserve's 2024 survey.
Federal Reserve, March 202629%
of these applicants sought financing from an online fintech lender
The share increased from 17% in the 2020 survey.
Federal Reserve, March 202660%
of online-lender borrowers said their actual costs were higher than expected
The finding underscores the value of reviewing the complete repayment terms before accepting financing.
Federal Reserve, March 202631%
had no outstanding debt
Among firms with debt, 59% used a personal guarantee and 51% used business assets to secure it.
Federal Reserve, March 202677%
reported rising costs, tariff-related costs, or both as a financial challenge
The survey captures the cost pressure that can shape when and why a business considers financing.
Federal Reserve, March 2026Nonemployer firms
A distinct picture for owner-only businesses.
The Federal Reserve's July 2026 chartbook added a separate look at businesses with no employees beyond their owner or owners. Their financing habits are not identical to those of employer firms, so the figures below are kept separate rather than blended into the national employer-firm results above.
Read the Federal Reserve chartbook31%
of nonemployer firms did not regularly use external financing
These businesses have no employees other than the owner or owners.
Federal Reserve, July 202664%
used personal funds to address financial challenges
That compares with 54% of employer firms in the same 2025 survey.
Federal Reserve, July 2026About half
had no debt at the time of the survey
The Federal Reserve reports this as an approximate share, rather than a rounded percentage.
Federal Reserve, July 2026What the numbers show
Most financing decisions start with a specific business need.
The most common reason firms sought financing was to cover operating expenses. Expansion and new opportunities were next. That distinction matters: a useful financing conversation begins with the job the capital needs to do, not a one-size-fits-all product.
The reported outcomes also show why it pays to compare the full offer. Approval, amount, cost and repayment terms can vary widely by the business, the purpose of the funds and the funding partner.
Explore funding optionsSources and methodology
How to read these statistics.
The employer-firm statistics above are reported findings from the Federal Reserve's 2026 Report on Employer Firms. The nonemployer statistics come from its July 2026 chartbook. Both releases reflect the 2025 Small Business Credit Survey. The employer-firm report received 6,525 responses from a nationwide convenience sample of firms with 1 to 499 employees.
Survey results describe reported business experiences. They are useful for understanding broad financing patterns, but they do not predict a specific business's eligibility, approval, pricing or terms.
Cite this page
Small Business Financing Statistics 2026
Prodigy 1 Capital. Updated October 9, 2026. Based on the Federal Reserve's 2026 Report on Employer Firms and July 2026 Chartbook on Nonemployer Firms.
https://prodigy1.info/small-business-financing-statistics