Wsj:
For small-business owners, availability of credit has stayed stable, although borrowing is a bit more costly.
Borrowing was reported by 37% of the owners in the January survey by the National Federation of Independent Business, an increase of three percentage points from December.
The interest rate for short-term loans paid by the small companies rose to 8.1% from 7.9% in December 2005. In January of 2005, the rate was 7.4%, and a year earlier, 5.9%; in January 2001 it was 10.3%.
The number of small-business owners who found it more difficult to get a loan in recent months rose two percentage points, to 6%, while 1% said it was easier, and the remainder found conditions the same. The number of owners expecting credit conditions to become more difficult rose by two percentage points. Only 4% said credit costs were their most-important problem, compared with a high of 37% in the inflationary early 1980s.
Capital spending by small companies remained solid, according to the NFIB survey, with 62% of the firms making outlays, down one percentage point from December 2005. Of those polled, 46% reported outlays for new equipment, 25% for vehicles, 13% to improve or expand facilities, 8% to buy land or new buildings to expand, and 15% for furniture, new fixtures and other such items.
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