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-by-State Data

The survey found that small businesses in Texas, Washington, New York, and California illustrate the range of credit market experiences. In Texas, 75% of firms reported rising costs as a problem, while 52% reported uneven cash flow. Despite this, 56% of small businesses in Texas used credit cards, compared to 62% nationally.

In Washington, 91% of small businesses complained of increased costs, and 55% reported uneven cash flow. However, only 26% took on debt to cope with challenging financials, while 71% raised prices as a counterbalance. In New York, 45% of small businesses operated at a loss, above the 34% national average.

California faces many of the same challenges as its counterparts, with 26% of firms describing their financial condition as poor. Sixty percent used personal funds, 42% took out debt, and 31% downsized, all above average figures.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.