Philly small business owners are adjusting to the new ‘status quo’

Applications for access to capital, whether a line of credit, business loan, personal loan, home equity loan, real estate loan or cash advance were up in 2023 compared to 2022.

“A third of small businesses in our area are still applying for these products because they often use them to make ends meet, to try and get by to make it into next year where they might do better,” she said.

There was a large drop in loan applications from the U.S. Small Business Administration  — 30% in 2022 compared to 11% in 2023.

The top three financial challenges owners reported facing were increased cost of goods, services and labor, weak sales and operating expenses. Hiring qualified employees, growing sales and issues in the supply chain were the most common operational challenges.