A new survey from small business association National Federation of Independent Business (NFIB) has found that small business owners are saying that high interest rates are impacting their operations.

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In an email survey conducted during the first two weeks of December, the NFIB assessed small busines owners’ holiday sales and owners’ evaluation of economic conditions locally. The survey found that small business owners are not satisfied with financial terms when it comes to borrowing for their business and are concerned about rising interest rates.

“More small business owners report that higher interest rates are impacting business operations,” Holly Wade, Executive Director of NFIB’s Research Center, said. “Even with financing concerns, small business owners have expectations for a solid holiday season but aren’t confident in their local or national economy going into the New Year.”

More than a quarter of the respondents said they tried to borrow money, or did borrow money, for their businesses in the last quarter of 2023. Of those only 8 percent were satisfied with the amount and terms offered, a significant decline from just a few months prior. In July 2023, 32 percent reported being satisfied with the rates and terms.

Additionally, 80 percent of those accessing credit in the last three months reported high interest rates as their largest financing complaint, up from 58 percent in July.

Only five percent reported that their largest complaint was that the amount of credit approved was too low, while 4 percent reported the collateral required to borrow was too large. Owners also listed too short of a repayment schedule, too much paperwork and a slow application, approval or closing process (4 percent each) as complaints.

More than half of the owners accessing credit (55 percent) over the last three months said interest rates were a significant issue. Thirty percent said it was a moderate issue, and 11 percent said it was a mild issue.

A majority of owners said their financing complaint was having some impact on their business. Twenty-one percent said the impact was significant, while 35 percent said it was moderate and 44 percent said it was mild. Only four percent said it was not an issue at all, down from 23 percent in July 2023.