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Economic Headwinds Abound, KeyBank's Continued Investment in Local Communities Keeps Small Businesses Resilient

KeyBank
·3 min read

Small business owners face inflationary concerns, turning to banks for support

NORTHAMPTON, MA / ACCESSWIRE / May 14, 2024 / Inflation continues to be a pain point for business owners, and with the likelihood of interest rate cuts still held in the balance, this has only made the economic environment more uncertain for small business owners. In fact, KeyBank's 2024 Small Business Survey found 37% of small business owners anticipate that inflation will slightly increase their operating costs, and 27% expect a significant increase in operating costs in the next 12 months.

Often the first to feel the effects of inflation and economic volatility, small businesses are grappling with stability and anticipate fluctuating sales/revenue (35%), delayed payments from clients/customers (29%), and high overhead costs (28%) as the top challenges they will face this year. Yet despite concerns, 65% of small business owners feel confident they could fund their operating expenses for one month with their cash reserves, if an unexpected need arose - pointing to the notion that more small businesses have built up emergency funds.

To help navigate today's economic landscape, banks have become lifelines for business owners who have turned to their financial partners for advice on cash flow and business operations. The top three pieces of advice business owns have received include: Cut costs by reducing discretionary spending (34%); Establish an emergency fund (22%); and Diversify revenue streams by introducing new products or services (20%).

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"Banks are at a pivotal moment to provide small business owners with the tools and resources they need to navigate economic volatility and help their business run better," said Mike Walters, Head of Business Banking at KeyBank. "KeyBank is dedicated to providing small businesses and local communities with resources to help them remain financial resilient for long-term success."

KeyBank, a top SBA lender1, has provided more than $4.5 billion in small business loans and lines of credit. Most recently, KeyBank received their 11th consecutive "Outstanding" rating from the Office of the Comptroller of the Currency (OCC) on its most recent Community Reinvestment Act (CRA) exam.

Moreover, KeyBank is dedicated to supporting low-to-moderate income (LMI) communities as well as providing community investments to bring access to capital to local businesses. In 2023, KeyBank provided $267.7 million in small business lending to LMI communities and, in 2020 and 2021, processed 69,000 loans through the Paycheck Protection Program (PPP), providing more than $11.2 billion in critical funding to small and mid-size businesses.

Learn more about KeyBank's opportunities and programs for your small business by visiting key.com/small-business. KeyBank offers a range of tools, including the KeyBank Small Business Check-In, KeyBank Small Business Financial Review and the Business Cash Flow Calculator.

Methodology

This survey was conducted online by Survey Monkey. 1,983 respondents, ages 18-99, located in the United States, who own or operate a small-to-medium size business with an annual gross revenue of less than $10 million, completed the survey in March 2024. Learn more about KeyBank's opportunities and programs for your small business by visiting key.com/small-business. KeyBank offers a range of tools, including the KeyBank Small Business Check-In, KeyBank Small Business Financial Review and the Business Cash Flow Calculator.

CFMA #240508-2592778

This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice. All credit products and SBA Loans are subject to approval, terms, conditions, and availability and subject to change. Key.com is a federally registered service mark of KeyCorp. ©2024 KeyCorp

1Source: Statistics released by the U.S. Small Business Administration (SBA) October 2023 for total approved loans through the SBA's 7(a) lending program during the federal fiscal year ending 10/2023.

View additional multimedia and more ESG storytelling from KeyBank on 3blmedia.com.

Contact Info:
Spokesperson: KeyBank
Website: https://www.3blmedia.com/profiles/keybank
Email: info@3blmedia.com

SOURCE: KeyBank



View the original press release on accesswire.com