The regional president for TD Bank sees cautious optimism among small business owners in Delaware.
Brian Monday says the optimism has been seen throughout the state and in a variety of businesses. Monday’s territory includes Maryland and the Washington, D.C. area. A few areas of the region have seen cutbacks related to the fedeal government that have affected business, he noted. His statements are reflected in the bank’s second annual Business Pulse Check survey of small business owners in Delaware, as well as the Greater Philadelphia Area. TD asked small business owners in the area about their revenue goals for 2014 and 2015, hiring expectations, financing needs and the influence of the U.S. economy on their business.
The Small Business Pulse Check polled more than 250 small business owners with revenue of $5 million or less.
This year’s results found that nearly three-quarters (73 percent) of local small business owners expect to meet or exceed their projected revenue performance by year-end 2014, up from 69 percent in 2013. Significantly fewer area business owners (47 percent) feel the national economy has had a negative impact on their business over the past year compared with 2013 (56 percent). With lingering economic fears subsiding, 54 percent of small business owners are projecting revenue and sales growth next year, compared with only 48 percent of those surveyed in 2013.
TD, a part of a financial services company based in Canada, sailed through the financial crisis without loan problems or being part of the TARP program that injected capital into many U.S. banks.
Monday said that helped the bank in making money available to borrowers, although he added that some business owners may still believe that it is difficult to get a loan.
TD is best known as a retail bank with branches that operate seven days a week,
However, Monday notes that the neighborhood business model is based on convenient banking services for nearby businesses, including loans. Branch managers are also active in the community and work with businesses in their territory, he added.
TD has 13 branches in the state and is still scouting for additional sites in the state, Monday said. No new branches are on the boards for the bank, which operates in all three counties.
TD, after a major expansion in the region under previous owner Commerce, has slowed down branch construction. However, it is not closing branches, a strategy now being undertaken by some banks.
Other findings in the survey included:
– Area small business owners expecting to see revenue and sales growth, but, according to the survey, 62 percent are optimistic and excited about their business opportunities for 2015. Thirteen percent of business owners even indicated 2015 might become their best year to date.
– Twenty percent of local small business owners have applied or are planning to apply for a loan or line of credit in the next 12 months.
Of those business owners with credit needs, nearly half (48 percent) are seeking financing for working capital support, followed by cash flow (42 percent) and product/equipment costs (40 percent).
– The majority of small business owners (82 percent) indicated they would go to their primary financial institution if they were in need of additional credit or financing.
– Male-owned small businesses in the Philadelphia metro area are three times as likely to have applied in the past 12 months or plan to apply in the coming year for a loan than small businesses owned by a female.
– When it comes to credit/financing needs, 54 percent of male-owned small business owners would use the funds for working capital vs. 67 percent of female-owned business owners that said they would use the funds for product /equipment costs.
– 69 percent of area businesses plan to keep staffing levels unchanged.
