Using data from the national 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey, this brief details findings from the Third District states: Delaware, New Jersey, and Pennsylvania.
The survey finds that for the fourth year in a row, more than half of the firms in the three states said their financial conditions were poor or fair. Overall, 64 percent reported poor or fair financial conditions, compared with 58 percent in 2023.
Other findings from the 917 firms surveyed in these states include the following:
- Fewer firms experienced increases in revenues compared with 2023, and more firms experienced revenue declines.
- Firms continued to face increased costs, and more firms carried debt and reported issues with paying operating expenses and uneven cash flows compared with the previous year.
- Since 2023, the portion of firms that reported challenges with reaching customers or growing sales increased, while issues with hiring or retaining qualified staff remained similar.
- The portion of firms that responded to financial challenges by using personal funds increased, while the portion that raised prices decreased, and the share that used cash reserves remained similar.
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 over 7,600 small employer firms nationwide.
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