More U.S. small businesses reported having greater difficulty getting a loan in March after multiple bank failures led to a further tightening of credit conditions, Bloomberg News reported. A net 9% of owners who borrow frequently said financing was harder to get compared to three months earlier, the most since December 2012, according to a survey from the National Federation of Independent Business out Tuesday. The same share expects tougher credit conditions in the next three months, matching the highest level in a decade. “Small-business owners are cynical about future economic conditions,” Bill Dunkelberg, NFIB chief economist, said in a statement. “There are major uncertainties ahead, most immediate is concern that a banking crisis could develop.” The collapse of four banks in March, most notably Silicon Valley Bank and Signature Bank, prompted many lenders to tighten standards on business loans. That’s made it even more difficult for smaller firms to borrow, compounding what was already a tough financing environment after a year’s worth of interest-rate hikes from the Federal Reserve.
