Small businesses without employees were most successful in obtaining Paycheck Protection Program funding from community banks and were the most satisfied with the support they received during the pandemic compared to large banks, credit unions and online lenders, the Federal Reserve Banks said.
While overall non-employer firms were less likely than their small business employer counterparts to seek emerging funding, those that did were more likely to receive all the funding they sought at “small banks” (63 percent) topping 52 percent at large banks, 46 percent at credit unions, and 45 percent at online lenders, according to the latest Small Business Credit Survey.
The survey also found that 42 percent of community bank non-employer applicants were satisfied with their experience, compared with 39 percent at credit unions, 29 percent at large banks, and 28 percent at online lenders.
Details: Findings of the Small Business Credit Survey 2021 Report on Nonemployer Firms, focuses on the experiences of this group leading up to the pandemic and the first six months of the crisis. Non-employer firms comprise 81 percent of all small businesses in the U.S. and are more likely to be owned by women and people of color.
