Small businesses drive local economies, yet those in Delaware, New Jersey, and Pennsylvania faced major financial difficulties in 2025, according to the Fed’s Small Business Credit Survey.
Below are some key findings:
- Most firms in the three states described their financial condition as poor or fair. Debt levels held relatively steady, with over one-third of firms seeking loans or credit lines.
- Small businesses in the region continued to face challenges with rising costs, paying operating expenses, and weak sales. Nearly half reported issues with uneven cash flows and tariff-related costs.
- New Jersey firms are struggling compared with Pennsylvania firms. They were more likely to report poor or fair financial health, dip into personal funds to stay afloat, and face challenges with operating expenses and weak sales.
Interact with survey data and learn more about regional trends in this article.