New survey data shows growing need for flexible capital options

Washington, D.C. — The Revenue Based Finance Coalition (RBFC) is highlighting findings from the Federal Reserve’s recently released 2026 Small Business Credit Survey Report. The report shows the growing need for flexible financing solutions and access to funding options for small businesses navigating a challenging economy.

Small businesses face significant financial pressure, with the survey finding that 77% of small businesses reported cost-related financial challenges in the prior year. Rising operating expenses, uneven sales, and cash flow pressures are creating difficult conditions for business owners across industries.

While navigating challenges, many businesses are seeking capital to keep operations moving and to grow their operations. The survey found that 56% of businesses sought financing to cover operating expenses, while 46% pursued capital to expand their business or invest in new opportunities. These findings suggest businesses are not seeking financing simply to take on debt. Instead, they are seeking practical tools to make payroll, purchase inventory, repair equipment, stabilize cash flow, and invest in future growth.

“The survey findings show small businesses need access to flexible capital options,” said Mary Donohue, Executive Director of RBFC. “Gaps in financing prevent small businesses from hiring and investing in future growth. Small businesses need more capital options to meet their needs and to grow local economies.”

The report also highlighted a significant gap between financing demand and financing access. While businesses continue seeking capital to sustain and grow their operations, only 51% of firms reported having all of their financing needs met. Another 34% experienced financing shortfalls, while 15% reported unmet financing needs altogether.

“Nearly half of small businesses are still experiencing financing gaps,” Donohue said. “Policymakers should focus on expanding responsible pathways to capital rather than limiting financing options that businesses depend on.”

The findings also reinforce that small businesses need practical financing solutions that match the realities of running a business. More than 37% of financing applicants sought less than $50,000. This shows many businesses are not seeking large, long-term financing products. Often small businesses simply need timely access to working capital that allows them to address immediate challenges or seize growth opportunities.

“Working capital can mean the difference between surviving, growing and hiring, or missing an opportunity,” Donohue said. “Small business owners are not all alike, and their financing needs are not all alike. Responsible policy should promote transparency and accountability while preserving access to a range of financing options that support businesses with diverse needs.”

RBFC encourages policymakers, regulators, and industry stakeholders to consider the realities facing today’s small businesses and support policies that strengthen access to flexible, responsible funding solutions.