Surveys paint picture of improving credit market

5/3/2011

While a number of studies released this week have shown slight but noteworthy improvements in small business lending, hiring and financial outlooks, Tuesday's quarterly report from Capital One provides a more encouraging depiction of the overall economic recovery.

Specifically, small businesses appear more optimistic about financial conditions and the availability of credit. According to the survey, 85 percent of small firms in the first quarter claimed they are able to access necessary financing, up from 78 percent in the fourth quarter of 2010.

The data reflect recent monthly studies by the National Federation of Independent Business, which has consistently reported that more than 90 percent of small firms are achieving their credit needs.

"It is an encouraging sign that most businesses believe credit and financing is available to them when needed," said Pete Appello, executive vice president of small business banking at Capital One, in a statement. "This will allow small businesses to take advantage of growth opportunities when they are ready."

The findings also mirror that of Monday's Small Business Lending Index from Thomson Reuters and PayNet, which found small business borrowing in March grew 12 percent over the year before.