According to Capital One’s most recent Spark Business Barometer, small business owners continue to feel the effects of “a challenging economic landscape,” but are more optimistic about the future of their businesses and the economy. If you’re a commercial mortgage broker, it’s important to keep up with the general sentiment of small business owners. Here are some interesting statistics the survey had to report:

• Small business owners are feeling better about the economy. According to the survey, about half of small business owners are optimistic about the national economy, and more than two thirds are feeling good about their local economies.

• Small business owners are optimistic about their financial situation. About a third of small business owners reported that their financial situation has improved since last quarter. Nearly half of the small business owners surveyed feel that their financial outlook will improve in the next six months.

• Small businesses don’t often use SBA loans, and those who do find them “complex and confusing.”  Although nearly 80 percent of the small business owners surveyed are aware of SBA loans, only 9 percent have applied for one. Nearly three fourths of business owners who have applied for SBA loans describe the process as very or somewhat complicated.

So what does all of this mean for mortgage brokers looking to woo clients in need of small commercial mortgages?

Firstly, small business owners with an optimistic view of the economy and their own financial outlook are probably more likely to apply for a commercial mortgage. Secondly, when small business owners are looking for financing, SBA loans generally present a challenge.

Keeping tabs on the sentiment of small business owners will give you valuable insights about potential borrowers. As a mortgage broker, it’s important to use these insights in order to understand your potential borrowers and to provide them with a small commercial mortgage that best fits their needs.

Are you a commercial broker working with a small business owner who did not qualify for an SBA or bank loan? Call APEX at 800-262-2739 or submit a loan scenario here.

‍