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Small Businesses Report Success Securing Bank Loans, According to Private Capital Index

September 19, 2018

LOS ANGELES--(BUSINESS WIRE)--Sep 19, 2018--There is good news and bad news for small businesses in Q3: while they report a high degree of success securing bank loans in the prior three months, they are facing a growing problem attracting and retaining quality workers, according to the Q3 2018 Private Capital Access Index (PCA Index) from Pepperdine Graziadio Business School and Dun & Bradstreet.

Fifty-three percent of all small businesses surveyed report they were successful securing a bank loan in the past three months, including 85% of middle market companies ($5-100 million). Businesses with less than $5 million in revenue saw the sharpest increase, going from 32.7% reporting success in Q3 2017 to 43.8% in Q3 2018, a 33% increase.

“Small businesses, especially Main Street businesses, have turned a corner and banks have taken notice,” said Nalanda Matia, lead economist at Dun & Bradstreet. “Funding is flowing to smaller enterprises who are in growth mode.”

Among likely sources of future funding, small businesses reported bank loans were the no. 1 source named (67%), followed by credit union lending (41%) and asset-based lending (35%).

Overall, 75% of businesses expect their business to perform better in 2018 compared to 2017 and 84% are confident their business will grow.

However, small businesses are now facing a new challenge in attracting and retaining a quality workforce. Twenty-two percent of small and mid-sized businesses reported struggling with finding and retaining a skilled workforce, up from 17% in Q3 2017, a nearly 30% increase.

“In the U.S. there are more job openings than there are unemployed workers and small companies are not immune to skilled labor shortages,” said Dr. Craig R. Everett, director of the Pepperdine Private Capital Markets Project. “Small businesses will have to raise wages and hit untapped sources of labor if they are to continue to grow.”

Seventeen percent of small businesses said the ability to find qualified employees was a key reason preventing them from hiring (second only to 35% reporting economic uncertainly or confidence). More than half of small businesses (54%) report they plan on hiring between 1 to 5 people in the next six months.

The PCA Index is a quarterly indicator produced by the Pepperdine Graziadio Business School and Dun & Bradstreet. The Q3 2018 Index report was derived from 657 completed responses collected between July 16 – July 31, 2018.

Download the latest index data here and follow us on Twitter at @GraziadioSchool and @DnBUS.

About Dun & Bradstreet

Dun & Bradstreet helps companies around the world improve their business performance. The global leader in commercial data and analytics, we glean insight from data to enable our customers to connect with the prospects, suppliers, clients and partners that matter most. Since 1841, companies of every size rely on Dun & Bradstreet to help them manage risk and reveal opportunity. For more about Dun & Bradstreet, visit DNB.com. Twitter: @DnBUS

About the Pepperdine University Graziadio Business School

Anchored in the core values of integrity and innovation, the  Pepperdine Graziadio Business School  challenges individuals to think boldly and drive meaningful change that positively impacts their organizations and communities. With an entrepreneurial spirit, the Graziadio School advances experiential learning in small classes that deepen connections and stimulate critical thinking. Through our wide continuum of MBA, MS and executive degree programs offered across six California campuses, Graziadio faculty inspire full-time students and working professionals to realize their greatest potential as values-centered, Best  for  the World Leaders. Follow Pepperdine Graziadio on  FacebookTwitterInstagram and  LinkedIn.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180919005195/en/

CONTACT: Pepperdine Graziadio Business School

Amanda Karr, 310-568-5663

Amanda.karr@pepperdine.edu

or

Dun & Bradstreet

Lauren Simpson, 310-919-2230

SimpsonL@dnb.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: EDUCATION UNIVERSITY SMALL BUSINESS PROFESSIONAL SERVICES ACCOUNTING BANKING FINANCE HUMAN RESOURCES

SOURCE: Pepperdine Graziadio Business School

Copyright Business Wire 2018.

PUB: 09/19/2018 06:00 AM/DISC: 09/19/2018 06:01 AM

http://www.businesswire.com/news/home/20180919005195/en

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