The whole picture in one table

The headline numbers on small business funding, each with its year and its source.

The Federal Reserve figures come from the 2025 Small Business Credit Survey, fielded from September 3 to November 14, 2025 and published in March 2026. It drew 6,525 responses from firms with 1 to 499 employees.

36.2 million small businesses, and nearly half of private-sector jobs

Small firms are 99.9% of all U.S. businesses. Here is how many there are and how many people they employ.

The SBA Office of Advocacy defines a small business, for research purposes, as an independent business with fewer than 500 employees. Its counts are based on 2022 Census Bureau data.

Note: the Office of Advocacy’s 2025 Small Business Profile for the United States lists 36,186,089 small businesses in its 2022 table by industry (Advocacy profile). Both publications round the total to 36.2 million.

What it means: most U.S. businesses are small, and more than four in five have no employees, so “small business” figures often describe very different kinds of firms.

6 in 10 businesses went looking for financing

Most were not funding a big leap. The top reason was covering operating expenses.

The Federal Reserve survey asks employer firms whether they applied for financing in the 12 months before the survey, and for what purpose. All figures are from the 2025 survey (Fed report; Fed appendix).

Reasons for applying

Share of financing applicants, 2025 survey. Respondents could select more than one. Source: Fed appendix.

• Meet operating expenses: 56%
• Expand the business, pursue a new opportunity or acquire business assets: 46%
• Have available credit for future use as needed: 42%
• Refinance or pay down debt: 28%
• Make repairs or replace capital assets: 26%

Why some firms did not apply

Among firms that did not apply, 63% said financing was not needed or they had sufficient financing. Another 17% described themselves as debt averse, and 10% were discouraged, meaning they did not expect to be approved (2025 survey; Fed appendix).

What it means: seeking financing is routine for employer firms, and covering operating expenses is a more common reason than funding an expansion.

Big banks still lead, but online lenders are gaining

The share of applicants turning to online lenders rose from 17% in the 2020 survey to 29% in the 2025 survey.

The survey asks loan, line of credit and merchant cash advance applicants which types of lenders they applied to. Applicants could name more than one source. Large banks are those with at least $10 billion in total assets. Sources: Fed report; Fed appendix.

The share of applicants that sought financing at online lenders rose from 17% in the 2020 survey to 29% in the 2025 survey (Fed report).

What it means: banks remain the most common place to apply, but a growing share of applicants also apply to online lenders. See broker vs. direct lender vs. marketplace.

Only 42% got everything they asked for

Another 36% received some or most of it, and 22% received none. Results vary a lot by where a business applies.

The survey reports outcomes two ways: for all financing applicants, and for loan, line of credit and cash advance applicants specifically. Both cover the 12 months before the 2025 survey.

Sources: Fed report (42%, 22%) and Fed appendix (all other figures). The report combines the “some” and “most” groups for all applicants and states that 36% received some or most of the financing sought.

Outcomes by lender type

Share of loan, line of credit and cash advance applicants at each source, 2025 survey. These shares are not adjusted for firm profitability or credit risk. Source: Fed appendix.

Why applications were not approved

Among applicants that were not approved for at least some of the financing they sought, 46% said lender requirements were too strict and 37% said the business already had too much debt (2025 survey; Fed appendix). Respondents could select more than one reason.

What it means: a full approval is the most common single outcome, but close to half of loan, line of credit and cash advance applicants receive less than they asked for. Related reading: why business loan applications get declined.

Rising costs hit nearly 3 in 4 businesses

Costs, operating expenses and uneven cash flow top the list of challenges owners reported.

The survey asks employer firms which financial challenges they experienced in the prior 12 months. Respondents could select more than one. Source: Fed appendix.

Seventy-seven percent of firms reported rising costs, tariff-related costs or both (Fed report). Among firms with financial challenges, 54% used personal funds in response and 36% took out debt (2025 survey; Fed appendix).

What it means: cost pressure and cash flow timing, more than access to credit, are the challenges employer firms report most often.

$44.8 billion in SBA-backed loans, and a new $10 million ceiling

The SBA guaranteed 84,400 loans in fiscal year 2025. In 2026 the combined 7(a) and 504 limit doubled.

The SBA does not lend directly in its 7(a) and 504 programs. It guarantees loans made by participating lenders and Certified Development Companies. The figures below are from SBA program pages and SBA news releases.

Under the 2026 policy, a qualified borrower that secures a 7(a) loan first may access up to $5 million through the 7(a) program and up to $5 million through the 504 program (SBA release).

What it means: SBA-guaranteed loans are a small share of all business financing by count, but the program limits are now the highest the agency has offered. See SBA loans.

About half of new businesses reach year five

More than 1.28 million establishments opened in a single year. Here is how many last.

The SBA Office of Advocacy publishes opening, closing and survival figures drawn from the Bureau of Labor Statistics’ Business Employment Dynamics data.

The opening and closing counts include temporary closures and reopenings.

What it means: about half of new employer establishments are still operating after five years, and survival rates rise for businesses that reach that point.

Quote it, link it, check it

You are welcome to cite these figures. Please credit “RAN Funding, Business Funding Statistics 2026” and link to this page at ranfunding.com/business-funding-statistics/. Each statistic on this page links to its original source, so readers can check the figure where it was first published.

Where the numbers come from

All sources are public federal and Federal Reserve data: the Federal Reserve Banks’ Small Business Credit Survey, the SBA Office of Advocacy, and SBA program pages and news releases. Figures are reported as published, with the year or survey period they refer to. We do not combine figures from different sources into new statistics, and we do not estimate.

The Small Business Credit Survey uses a convenience sample, not a random sample. The Federal Reserve weights responses to match the U.S. small employer firm population.

This page is reviewed when new editions of these sources are released. See our editorial standards and fact-checking policy.

About RAN Funding

RAN Funding is a business financing company that works with a network of lenders. Clients complete one application for our lender network and work with one dedicated specialist. Funding ranges from $20,000 to $500,000+, with funding in as little as 24–48 hours once approved. The service is built for established businesses: most clients have 1+ year in business and $20,000+ in monthly revenue.

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