Impact Reports

5 Insights into Capital Access for Small Businesses in 2022

New data from Hello Alice reveals the challenges owners face as they seek funding and financing.

May 10, 2022 · 2 min read
Jeff Lee of Halo Customer Guitars, Inc.

Small business owners need capital to survive and grow, but many face considerable barriers to accessing it. At Hello Alice, we recognize the need for equitable access across the capital continuum. We continue to prioritize connecting small business owners to the money needed to fund and grow your business. To that end, we surveyed owners to examine capital access for small businesses in 2022.

In the spirit of equitable access, our latest survey report dives into the challenges, limitations, and opportunities of capital access for all owners, and especially women- and minority-owned businesses who comprise the majority of the Hello Alice community.

Here are some key takeaways on capital access for small businesses in 2022 from this report:

1. Small business owners remain optimistic about growth in 2022, but lack of capital limits growth.

Take, for examples, that 89% of small business owners claim access to capital is limiting their business growth potential.

2. Small business owners are relying on their personal savings.

As many as 37% of small business owners report using their personal savings to fund their business. This shows they’re deeply invested in the success of their business, but may have a limited runway without access to credit or flexibility.

3. Building business credit remains a challenge.

Though 50% of owners have a personal credit score of 680 or better — strong enough to apply for most business credit cards — that score would still lock them out of a business loan (which typically require a score of 720 or better to qualify for).

4. Demand for business credit is strong, but barriers are amplified for minority-owned businesses.

Notably, 49% of Black business owners who applied for financing in the last 12 months reported that none of their application was approved, compared to just 28% of white owners. A majority of owners (73%) say they’re interested in support to help them prepare to apply and successfully use business financing.

5. Demand for business credit is strong.

As evidenced by 62% of small business owners planning to apply for financing in 2022. Of those, 84% want to expand their business, pursue new opportunities, or acquire business assets with this financing.

More Resources 

Interested in learning more about capital access for small businesses in 2022? Download the full report on capital access for small businesses here.

Is your company or organization interested in supporting this important work? Or gaining insights about your community of business owners? If so, please reach out to [email protected]

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