The Daily Rundown: Long Wait for Loans

June 3, 2019

Category: The Daily Rundown


Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.

Today, loans take forever, selling small businesses is getting tougher, tariffs concern industry groups and a phishing scam is targeting business owners.

Small Business Owners Stuck on Hold for Loans

While there’s no doubt that most small businesses live and die based on their profit and loss statements, a timely loan can make all the difference when launching a new company or expanding. But for many business owners, the wait can feel like forever.

According to a survey by Lending Express, nearly 8% of business owners said they had to wait for six months or more on a loan application. Another 16% said they had to wait more than a month.

The Number: 1-in-8. One in 8 business owners reported being denied for a loan twice.

The Quote: This is a sign the market may have peaked and more people are expecting a correction in the year or two ahead.”

Optimism for Selling Smaller Companies Drops Off

When it comes time to cash out, small businesses often look for a larger buyer. However, the brokers who advise on these deals are reporting a drop off in potential buyers.

A survey by Pepperdine University’s Graziadio School of Business, found a drop in optimism in small businesses that a buyer for their business was out there. The drop in confidence was most pronounced among the smallest businesses.

The Number: 28%. Confidence that a buyer would purchase their business fell by 6 percentage points among businesses generating $1-2 million in revenue.

The Quote: This is a sign the market may have peaked and more people are expecting a correction in the year or two ahead.”

Small Business Groups Want Relief from Tariffs

Facing the possibility of additional tariffs imposed by the administration of President Donald Trump, small business groups publicly called for a case fire in the tariff battle. They expressed concern that smaller businesses are facing the biggest burden from tariffs.

The Number: 70%. Of the approximately 15,000 companies that import from Mexico have 50 or fewer employees.

The Quote: “Congress must step up on this critical matter and work with President Trump’s team to resolve the growing influx of illegal immigrants and related humanitarian crisis. Imposing new taxes on Americans is not the answer.

Phishing Scam Targets Small Business Owners

We’re all used to the phishing scams that look obvious. But now a phishing scam that looks like a request for proposal (RFP) to business owners just looking to grow, the Better Business Bureau reports. Luckily, they provide tips on how to avoid getting taken.

The Number: $1.6 million. The average cost of a successful phishing attack on a mid-size business is $1.6 million.

The Quote:No matter what the con, be sure to delete it.

How to Create an Onboarding Process from Nothing

Hiring is up. Way up. But so are the number of people quitting. If you want a successful, productive new hire, you need a plan. Check out this thorough guide to building an onboarding process for tips.


Jesse Noyes is Head of Content for Zenefits. He started out as a business reporter before beginning a career in marketing. Jesse is naturally curious not only about the work people do, but why they do it. His first job was building freestanding stone walls in his home state of Maine.

Category: The Daily Rundown

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