Jump ahead: Key findings | Funding gaps | Owner as lender | Personal costs | Financing barriers | Cash flow | How financing is used | Key takeaways | FAQs | Sample & methodology

Who is financing the businesses that need it most?

Ask who finances America's small and midsize businesses and the answer, more often than not, is the person who owns one. This report, based on an October 2026 survey of over 1,200 business owners and financial executives, reveals a system that works well for some while others are relying on retirement savings, home equity, and skipped paychecks. 

Intuit QuickBooks’ Business Financing Report 2026 explains why 2 in 5 (41%) US businesses with 0-99 employees report funding gaps and how it affects them. The majority of the businesses surveyed (83%) use the owner’s personal finances, with average contributions of roughly $60,000 per business since founded. Seven in 10 of these self-funding owners (70%) say this has affected their personal or financial wellbeing. And almost 9 in 10 underfunded businesses (89%) are experiencing operational or strategic challenges as a result—such as delaying hiring or growth plans.

The funding gap: 2 in 5 need more financing than they can get

More than 2 in 5 businesses with 0-99 employees (41%) currently have unmet financing needs, according to the survey. This funding gap takes three forms: 

1. Partly funded: 26% currently use financing but need more than they have.
2. Rejected: 8% can’t access financing at all because their applications were rejected.
3. Discouraged: 7% need financing but don’t even apply because they expect to be rejected. 

Overall, 60% of respondents currently use financing but only 34% are “fully funded”. The remaining 23% reported no need for financing when the survey was fielded.

Employers are more likely to report funding gaps than solopreneurs

Funding gaps are more commonly reported by larger employers in the sample (with 10-99 employees) than solopreneurs (45% vs 29%). Gaps are also more common among businesses that do not separate personal and business finances (48% vs 35% among businesses that do keep them separate). Overall, almost half of the respondents (47%) do not keep personal and business finances fully separated.

The funding gaps have consequences. Almost 9 in 10 underfunded businesses (89%) say it affects operations or strategic decisions, with 48% delaying or canceling hiring, expansion, or investment plans. One in ten (10%) are considering closing the business. Here are the top three consequences:

1. Relying more heavily on business owner’s personal savings (28%)
2. Raising prices sooner or higher than we otherwise would (22%)
3. Delaying or canceling plans to expand the business (22%)

The owner as lender: What are small and growing businesses using personal financing for?

More businesses use personal financing (83%) than business financing (78%), according to the survey. But given the choice, 67% of owners who have used personal financing would have preferred to use business financing instead, if it had been available. 

Personal financing is especially important during the startup phase. Only 27% report using business financing “to get the business started” compared to 36% that used the owner’s money for this. Overall, nearly half (49%) report that the business was underfunded at launch. Similarly, younger businesses (up to 5 years old) are significantly more likely to report using the business owner’s money than older businesses (11+ years old). Business owners with a higher appetite for financial risk are significantly more likely to self-fund their businesses than those without.

Personal credit lines and credit scores

When cash runs short, nearly half of respondents (48%) say the first response is to rely on the owner as a credit line. Owners either put in their own money (32%) or skip their own paycheck (16%). Similarly, when applying for financing, almost 3 in 5 (58%) report using the business owner's personal credit score—either on its own (33%) or alongside the business credit score (25%). 

The personal cost: How does self-funding affect the business owner?

Seven in 10 business owners who have put their own money into their business (70%) say that doing so has negatively affected their personal finances or wellbeing. Among businesses with a funding gap, this rises to 88%. The most common problem is “stress, anxiety, or difficulty sleeping” (32%), while 1 in 10 (12%) have been left without retirement savings. 

In purely financial terms, what does this cost business owners? Based on the survey results, owners are using approximately $60,000 of their own money, on average, per business. Two in five (41%) have contributed more than $25,000. Nearly 1 in 5 (18%) have contributed more than $100,000.

Owners are also using personal assets

Overall, nearly 3 in 5 business owners who self-fund their business (58%) report using their personal assets—either selling them, using equity, or using them as collateral. The top three are:

1. Stocks or investments: used by 21%
2. Retirement savings: used by 20%
3. Home or other property: used by 15% 

These decisions often move with the markets. Two-thirds of business owners who have used their home or stock market investments to fund their business (68%) say the value of these assets affects their ability to use them. For example, more than 2 in 5 (44%) say rising values are currently making it easier for them to use these assets for business funding, while 1 in 5 (21%) say falling values are currently having the opposite effect. The remaining 32% say their decisions are purely based on the needs of their business at the time.

Financing barriers: Who can’t access financing and why?

Two-thirds of respondents (66%) report facing at least one barrier that has prevented them from accessing financing. The top three barriers are: 

1. Not enough collateral (22%)
2. No relationships with lenders (18%)
3. Low credit score (18%)

The oldest businesses in the sample (established 11+ years ago), were significantly less likely to face financing barriers than the youngest. The same is true for businesses with longer cash runways (more cash on hand) and businesses that keep personal and business finances separate. While statistically significant, these are correlations which do not imply causation.

Who is most likely to face a funding gap?

Younger businesses, businesses owned by people of color, businesses owned by women, and businesses owned by people with lower financial literacy (self-reported) are all more likely to report needing financing but not get it, according to the survey. The differences below are statistically significant.

• Business age: Younger businesses (up to three years old) are nearly three times as likely as older businesses (11+ years old) to need financing and have no access to it (24% vs. 8%). Their overall funding-gap rate is also higher (43% vs. 33%).
• Demographics: Businesses owned by people of color are more likely than white-owned businesses to report a funding gap (46% vs. 38%), to need financing but have no access (18% vs. 12%), and to say their financing needs were “urgent” or “critical” over the past 12 months (42% vs. 33%). Nearly 1 in 5 owners of color (19%) say race or ethnicity can make financing harder to get, compared with 7% of white owners.
• Gender: Businesses owned by men and women report funding gaps at similar rates (42% vs. 40%). But women are nearly twice as likely to need financing and not apply because they expect to be rejected (9% vs. 5%), and less likely to have used business financing in the past year (61% vs. 75%). Women are also twice as likely to say their gender has made financing harder to get (15% vs. 7%).
• Financial literacy: Owners who rate their own financial literacy as “low” are more than twice as likely to need financing but have no access at all (22% vs. 10%) and far less likely to have their records ready to apply (43% vs. 74%).

What would encourage more businesses to apply for financing?

According to the survey, some businesses that need financing don’t apply because they expect rejection. The top five incentives that would encourage more businesses to apply are as follows:

1. Stronger credit score (25%)
2. Transparent costs, fees, and terms (22%)
3. Improved cash flow or sales volume (21%)
4. Faster decisions by lenders (20%)
5. No collateral requirement (20%)

Cash flow and runway: Who is waiting to get paid and what is the impact?

Almost every business that invoices is waiting for payments, according to the survey. More than 9 in 10 (93%) report payment delays. A quarter (25%) typically wait more than two weeks. Older, higher-revenue businesses tend to wait longest. 

Two-thirds of businesses waiting for payments (65%) say the delays are creating challenges. The most common are delaying purchases of inventory or materials (20%), keeping more cash on hand than usual (20%) and, again, relying on the owner's personal funds (18%). 

30 days is the reported median cash runway

If revenue dried up today, respondents say they could cover business expenses for another 30 days, on average (based on the median). Only about 1 in 6 (17%) have more than three months of cash runway. More than a quarter (27%) have one week or less. Older or higher revenue businesses tend to have longer cash runways than younger or lower revenue businesses. For example, businesses with over $1 million in annual revenue were significantly more likely to have 3 to 6 months of business expenses available than those with less than $100,000.

Some are taking matters into their own hands by using financing products themselves—and most say they're working. Almost a third (31%) currently offer a BNPL service (buy now, pay later) and 73% of them have seen revenue increase as a result. Nearly as many (30%) use revenue-based financing, which is repaid as a percentage of sales, and 69% say it has improved cash flow.

Business financing: How is it used and why is it needed?

Over the past 12 months, business credit cards were the most common type of financing used by respondents (supporting similar findings in other recent surveys). Asked to describe their financing needs over that period, when financing was used, and almost half (47%) say it was “routine” use for everyday expenses. But 37% describe the need as “urgent” or “critical,” with inflation cited as the top driver. 

Reasons for needing financing over the past 12 months run from routine to emergency:

• 47% say it was “routine: to pay for everyday expenses.”
• 40% say it was “growth: to fuel business expansion or innovation.”
• 27% say it was “urgent: to relieve temporary financial pressure.”
• 14% say it was “critical: to prevent the business from closing.”
• 10% say it was a “buffer: to create or top up a rainy day fund.”

As noted above, four in ten businesses that used financing in the past year (40%) used it for growth. Of these, half bought equipment (50%), 48% bought inventory or materials, 37% expanded (new location, product or service), 36% invested in technology, and a third (33%) hired more employees.

Three key takeaways for businesses and lenders

When businesses can’t get financing, many owners are writing checks, tapping savings, or liquidating assets. But some can’t do this and most would prefer not to. Here are three of the most important takeaways about the current state of business financing:

1. The funding gap is much larger than the number of rejections implies. Only 8% of businesses surveyed aren’t using financing due to rejected applications. Another 7% never applied despite needing it, and 26% received less than they needed. Meanwhile, 83% are relying on the owner’s personal finances to fill the funding gap.
2. The gap is widest where the stakes are highest. The youngest and smallest employers are the most likely to need financing and not get it. They're also more likely to have urgent financing needs, rather than discretionary. These businesses are vital to the future of our economy but often run on the thinnest margins, with little or no cushion to fall back on. 
3. Good habits may help. Owners who keep business and personal finances separate are far less likely to report a funding gap, based on correlations in the data. Similarly, businesses with their paperwork in order typically report better access. And the things that would encourage more businesses to apply—stronger credit scores, transparent terms, faster decisions, simpler applications—are potentially addressable.

Sample and methodology

Intuit commissioned an online survey, fielded in October 2026, of 1,208 US business owners and financial decision-makers at US businesses with 0 to 99 employees. The sample included 940 business owners (78%) and 268 executives (22%) who make financing decisions for the business. Questions about business owners’ personal finances, income, and assets were asked only of owners, not executives. All respondents received remuneration. 

Statistical analysis: All differences described as “more likely” or “less likely” or “significant” between groups of respondents are statistically significant based on chi-square tests (Yates-corrected for two-group comparisons) at the 95% confidence level (p < .05), without adjustment for multiple comparisons. Results are unweighted and show association, not causation. 

Rounding, aggregation, and denominators: Results are rounded to the nearest whole number so may not sum to 100% in some cases. Responses to multiple-choice questions are shown as a percentage of respondents, not of responses, so they can sum to more than 100%. Aggregated results from multiple-choice questions are deduplicated. Combined results are the sum of rounded components so can differ by 1 point from the exact value. Where a statistic is based on a subset of respondents (for example, owners who have used personal money, n=847; businesses that used financing in the past 12 months, n=989; businesses that invoice and wait for payment, n=904), the base is stated in the chart or the text. 

Sample composition: By size, 23% of businesses in the sample have no employees, 33% have 1 to 9 employees and 44% have 10 to 99. By revenue, 32% earn under $100,000 a year, 37% between $100,000 and $999,999, and 29% $1 million or more. By age, 20% of businesses are under three years old, 31% are 3 to 5 years old, 21% are 6 to 10, and 28% are 11 or older. 83% are service businesses and 17% produce goods. 52% of respondents are men and 47% are women; 68% identify as white and 39% selected at least one non-white race or ethnicity (respondents could select more than one). 

Financing definitions: Business financing means credit obtained in the business's name: business term loans, SBA loans, business lines of credit, business credit cards, merchant cash advances, trade or vendor credit, and revenue-based financing. Personal financing means the owner's own money or credit used for the business: personal savings, personal credit cards, home equity, personal loans, retirement account withdrawals or loans, and loans from family or friends. Equity investment and grants were asked about separately and are not included in either group.

Funding gap definition: This is defined as a business that is using financing but needs more, has applied and been rejected, or needs financing but hasn't applied because it expects to be rejected. The full data set, including every question and breakdowns by employer status, employee size, revenue, business age, industry, gender, race and ethnicity, and more, is available on request. 

2025 Business Financing Report: Note that the 2025 edition of this report is based on a different survey so year-over-year comparisons are not available.

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