Small business credit access varies significantly by state, with entrepreneurs in some regions facing higher rejection rates and limited financing options. According to the 2025 Fed Small Business Credit Survey, 58% of early-stage potential employers sought financing in 2024, with 50% being denied their credit application.

State-Level Data

The survey also provides state-level data on credit use and the state of the market. Texas, for example, had 75% of firms reporting rising costs as a problem, while 52% reported uneven cash flow. In contrast, Washington state had 91% of small businesses complaining of increased costs and 55% reporting uneven cash flow.

California, one of the most powerful economies in the US, faces many of the same challenges as its counterparts, with 26% of firms describing their financial condition as poor. New York saw above-average challenges, with 45% of small businesses operating at a loss.

The data highlights the diversity of the credit market in the US, with small businesses not tied to one funding avenue. They may pick and choose from a range of options, whether that’s a strategy driven by credit card spending or an approach more reliant on traditional bank loans.

Original reporting: KTVZ (Central Oregon) — read the source article.