Providing loans to young and emerging small businesses should be considered “mission critical” for any community-based financial institution hoping to grow its loan portfolio. According to the recently released report on startup firms by the Federal Reserve, 20% of all employer firms in the U.S. have been in business for less than 2 years while another 14% have been around for 3 – 5 years. That is about a third of all employer firms. Additionally, more than half of these firms sought financing in 2016.
Here are a few other key business metrics from the report: