The Federal Reserve Bank of New York recently found that limited access to credit is preventing many small- and medium-sized businesses in New York, New Jersey and Connecticut from growing. According to the reserve's Small Business Credit Survey, 49 percent of respondents stated that finances are hamstringing growth. Additionally, 66 percent of owners claimed they were already in the red, but 36 percent of profitable companies also said they couldn't obtain credit. 

The poll shows that 63 percent of credit applications were approved this year, which is consistent with 2012's rate. Additionally, more SMBs "received all of the credit they sought" in 2013 than they did last year. 

Most importantly, the reserve's survey shows that optimism is growing among SMBs in these three states, as only 18 percent of respondents were discouraged and didn't apply for credit, down from 29 percent in 2012. The report indicates that the owners of these companies are more likely to use their personal money as capital than other entrepreneurs are. 

Overall, the reserve's findings show that obtaining capital remains one of the toughest challenges that SMBs face in today's economy. Many owners struggle to find financial institutions that are willing to finance independent companies. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

Small- and medium-sized business borrowing decreased for the third consecutive month in March. The Thomson Reuters/PayNet Small Business Lending Index dropped to 98.5 from February's 105.4. The latter statistic was "upwardly revised" from 101.3 in the initial report. The consistent drop in borrowing has negated the momentum established when the Federal Reserve began purchasing assets to bolster economic growth. PayNet founder Bill Phelan believes that entrepreneurs are struggling with the unstable market.

"They don't have an appetite to take risk...they must have an opinion that the risks are too great," Phelan told the news source.

Additionally, the index shows that SMB owners are struggling to pay off their debts. Delinquencies rose to 1.6 percent, which marks the first time in three years that the rate increased. In February, delinquency reached a record low of 1.58 percent.

These figures highlight the financial struggles many SMB owners have been facing in recent months. Entrepreneurs are trying to stretch their budgets and avoid taking on extra debt because the economy has been slow to return to pre-recession heights. The index is usually indicative of quarterly trends so borrowing may continue to decrease in the near future. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

A new report shows that banks were using funds meant for small- and medium-sized business loans to repay money from the federal bailout. According to a study conducted by the Special Inspector General for the Troubled Asset Relief Program, the Treasury created a fund worth $30 billion to increase credit for SMBs in 2010. Of that total, $2.7 billion was distributed to 137 banks which had received financial assistance from the Troubled Asset Relief Program. The report states that the banks then used $2.1 billion "to exit TARP in 2011."

The fund was meant to increase SMB lending by providing low interest rates. However, Cliff McCauley, a senior executive vice president of Frost Bank, claims most banks saw the money as the perfect way to get out of TARP debt. 

"Everyone went in thinking it was one of the ways to pay back TARP. It was disguised as promoting to encourage business lending," McCauley told CNN Money. 

This is only one example why some SMB owners mistrust banks. Fortunately for entrepreneurs, there are alternate means of financing their enterprises. For instance, credit unions are viable options for many SMBs that don't qualify for traditional loans. Additionally, the popularity of crowdfunding continues to grow among SMB owners. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

For the second straight month, small- and medium-sized businesses borrowed less than the previous month. The Thomas Reuters/PayNet Small Business Lending Index dropped to 101.3 in February, down from January's 111.7. Bill Phelan, the founder of PayNet, stated that the drop shows that SMB owners don't believe now is the best time to take out loans. 

"They don't have a conviction that they should go all in," Phelan said, according to Reuters. 

Additionally, the index showed the borrowing has slowed to its lowest rate since September. There was only a 2 percent increase in SMB financing on a year-over-year basis. 

The dip in borrowing could be attributed to the unstable economy. Many SMB owners are concerned about their finances and how market forces can effect their enterprises. A new survey has revealed which factors entrepreneurs think will hurt the economy moving forward. In a poll, Newtek found that 60 percent of respondents believe that "uncertainty in Washington" will have a negative effect on the economic situation. Additionally, 22 percent think the income tax increase is the prevailing factor. 

These findings highlight how unsure SMB owners are of their fiscal situations. Entrepreneurs are keeping close eyes on their finances to ensure that their companies are not hurt by the economy. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

New research shows that female small- and medium-sized business owners struggle to secure funding for their enterprises. According to Biz2Credit, loan approval rates for female-owned SMBs were 15 to 20 percent lower than they were for male-operated organizations. Additionally, the average female entrepreneur's credit score is 40 points lower than that of the average male owner. Rohit Arora, CEO of Biz2Credit, attributes these findings to the fact that many women-owned SMBs are in the retail industry. 

"Women tended to be more involved in retail operations, which generally have higher operating expenses and smaller margins. This may also account for their lower credit scores," Arora said in a statement. 

Arora notes that financial institutions consider these factors when processing loans, so female entrepreneurs don't seem like ideal borrowers. However, with an actionable business plan and a clear financial strategy, women SMB owners can improve their standing with lenders. Keeping a close eye on the credit score can also help with approval. Paying off debts and minimizing overhead expenses bolsters a credit score, which banks like to see in a potential borrower. Alternatively, there are other options like crowd funding that female entrepreneurs can use to finance their organizations. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

Small- and medium-sized business owners have many options for financing their enterprises. Entrepreneur Magazine points out that owners can turn to government loans, use credit cards, leverage their home equity or ask for assistance from friends and family. Additionally, credit unions help many entrepreneurs get their projects off of the ground, but a new survey indicates that many prefer a traditional bank experience. 

According to BAI and ARGO, more than half of SMB owners prefer to do business at a local branch or over the phone rather than use online banking services. Less than 25 percent of respondents stated that they use mobile applications. 

Banking fees continue to affect some SMB owners. Approximately 50 percent of entrepreneurs said that they consider an institution's fees when choosing a bank. The report speculates that higher fees would cause entrepreneurs to switch to new banks so they could save money. 

There are many advantages to traditional banking for SMBs. It is often easier for an owner to visit a branch for assistance than navigating a complicated menu online. That said, every entrepreneur has different requirements and should consider their individual needs before committing to financial institutions. 

Small-business marketing news brought to you by 123Print.com, provider of affordable custom business cards, postcards, letterhead and outdoor promotional items.