Small banks received the highest amount of “satisfied” marks than any other type of lender according to a survey from the Federal Reserve Banks. Small banks registered an 80 percent satisfaction score in the survey of borrowers, compared with 78 percent for credit unions, 77 percent for Community Development Financial Institutions, 61 percent for large banks and just 46 percent for online lenders. In 2016, the survey yielded 10,303 responses from small businesses with employees, or employer firms, located in 50 states and the District of Columbia.
The survey also asked about the top financial challenges for small businesses in the last year; actions taken as a result of those challenges; the amount of financing sought; and the credit sources they applied to.
Results from the 2016 survey showed that while many employer small businesses were profitable and optimistic in 2016, a significant majority faced financial challenges, experienced funding gaps and relied on personal finances.
The full results can be found on the New York Federal Reserve’s website by clicking here.