Small Business Credit Picture Improves Slightly

Washington, DC, Feb. 3 2011 -- Small business owners found it easier to obtain credit last year than in 2009 although the lending environment remains difficult for many, according to a report by the National Federation of Independent Business.

Of 856 small employers surveyed, 48 percent said they applied for credit last year, down from 55% in 2009, NFIB said.

Among these employers, 60% got everything or most of what they needed, up from 50% the previous year.

However, a full 16% were turned away.

The most common reason cited for seeking credit was to prop up cash flows, which was also the top reason credit was denied.

"The economic atmosphere for small businesses did not improve much in 2010," Denny Dennis, the group's senior research fellow, said in a press release.