Have more small businesses truly turned their backs on loans?

Read the ABA Banking Journal article here.

Here is a brief summary:

• Increased Disinterest in Loans: Post-pandemic, more small businesses report no need for credit, rising from just over 50% to slightly more than 60%.
• Historical Trends: Similar shifts occurred after the Great Recession, linked to survivorship bias and decreased risk tolerance.
• Pandemic Impact: Unlike the Great Recession, new business formation surged post-pandemic, driven by remote work and geographic diversity.
• Current Factors: Excess cash from government support and high interest rates reduce the need for loans, with expectations of increased borrowing when rates decrease.