Using data from the national 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey, this brief details findings from Pennsylvania. The survey finds that 61 percent of Pennsylvania small businesses said financial conditions were poor or fair in 2024 — the highest share since 2020.

The survey of 403 Pennsylvania small businesses also found that compared with 2023:

  • more small businesses carried debt, although firms reported similar revenue trends.
  • more firms faced financial challenges with increased costs, paying operating expenses, and uneven cash flows.
  • hiring or retaining qualified staff, reaching customers or growing sales, and supply chain issues remained the top operational challenges, although the portion of firms citing supply chain issues decreased.
  • the portion of firms that responded to financial challenges by using personal funds or cash reserves increased, while the portion that raised prices decreased slightly.

The Federal Reserve’s Small Business Credit Survey is a national sample of small businesses with fewer than 500 employees that provides timely information on firms’ needs and experiences with getting loans and managing debt. The Fed conducted its survey from September through November 2024 and reached more than 7,600 small employer firms nationwide.


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