Data from the PCA Index Featured in Associated Press about Businesses Struggling to Obtain Credit
An article in the Associated Press by Joyce Rosenburg mentions findings from the Pepperdine Private Capital Access (PCA) Index and two industry groups, the International Business Broke Association and the M&A Source.
Small and mid-sized businesses struggled in the third-quarter to obtain credit, which is having an impact on their plans to hire. The PCA survey questioned 752 small and mid-sized businesses. Since the Great Recession, banks have increased their lending to small and mid-sized businesses. As the economy starts to show signs of slowing down, lending officers will likely become more cautious.
Hiring expectations are slightly lower, with 30% of all companies not expecting to add jobs. Access to capital was the number one reason why companies are not expecting to add jobs or hire. The third-quarter also reported a drop in the number of companies that reported a profitable quarter - 55% of businesses of all sizes, compared to 58% in the last quarter. Read more.