Financing demand varies widely by industry, but access to capital varies even more. Manufacturing firms apply at the highest rate (69%) and receive full funding 63% of the time, while healthcare and education firms secure full funding just 39% of the time despite moderate demand.
High financing demand does not guarantee access to capital, with some industries facing significant approval barriers despite strong borrowing needs.
Key Takeaways
- Full funding rates range from 63% (manufacturing) to 39% (healthcare and education), a 24-point gap in capital access across industries.
- Healthcare and education experienced the sharpest YoY decline (-12pp, from 51% to 39%), while manufacturing improved the most (+10pp, from 53% to 63%).
- Manufacturing and non-manufacturing goods production share the highest application rates (69% and 68%) but diverge on full funding: 63% vs. 52%, a gap likely driven by collateral quality differences.
- Leisure and hospitality firms report the worst financial condition of any sector, with 73% rating themselves Poor or Fair, yet their full funding rate (57%) ranks second-highest.
- Healthcare and education has the highest denial rate (27% receiving no funding) despite moderate application volume (58%).
- Operating expenses are the top reason for seeking financing across all eight industries, ranging from 45% in finance and insurance to 64% in leisure and hospitality.
- Online lenders have the highest market penetration in healthcare and education (36%) and leisure and hospitality (35%), the two sectors with the greatest financial stress.
- Finance and insurance firms are the least likely to apply (47%) and the most likely to say financing was not needed (88%), consistent with their strongest self-reported financial condition.
Financing Application and Funding Rates by Industry (2025 SBCS)
Application rates span 22 percentage points across industries, but full funding outcomes diverge even more sharply.
| Rank | Industry | Application Rate (2025) | Prior Year (2024) | Change | Full Funding Rate (2025) | Prior Year (2024) | Change |
|---|---|---|---|---|---|---|---|
| 1 | Manufacturing | 69% | 65% | +4pp | 63% | 53% | +10pp |
| 2 | Non-manufacturing goods production | 68% | 68% | 0 | 52% | 50% | +2pp |
| 3 | Retail | 65% | 60% | +5pp | 55% | 49% | +6pp |
| 4 | Leisure and hospitality | 60% | 63% | -3pp | 57% | 49% | +8pp |
| 5 | Healthcare and education | 58% | 61% | -3pp | 39% | 51% | -12pp |
| 6 | Business support and consumer services | 56% | 59% | -3pp | 52% | 53% | -1pp |
| 7 | Professional services and real estate | 52% | 50% | +2pp | 51% | 55% | -4pp |
| 8 | Finance and insurance | 47% | 43% | +4pp | 57% | -- | -- |
What the Data Shows
Asset-Heavy Industries Drive Demand
Manufacturing and goods-producing sectors lead application rates (68-69%), reflecting capital needs tied to inventory, equipment, and physical assets.
Demand Does Not Equal Access
Healthcare and education firms apply at a moderate rate (58%) but receive full funding just 39%, the lowest of any sector.
The Leisure and Hospitality Paradox
Leisure and hospitality firms report the weakest financial condition (73% Poor/Fair) but achieve the second-highest full funding rate (57%).
Application Rate vs Full Funding Rate by Industry
Healthcare and education shows the largest access gap (19 percentage points), while finance and insurance is the only sector where funding exceeds demand.
Reasons for Seeking Financing by Industry Sector
Financing demand is primarily driven by operating needs rather than expansion across most industries.
| Industry | Operating Expenses | Expansion | Credit Reserve | Repairs/CapEx | Refinance |
|---|---|---|---|---|---|
| Leisure and hospitality | 64% | 33% | 36% | 44% | 33% |
| Retail | 62% | 45% | 39% | 23% | 35% |
| Healthcare and education | 58% | 44% | 45% | 23% | 37% |
| Manufacturing | 57% | 52% | 42% | 25% | 22% |
| Business support and consumer services | 56% | 52% | 39% | 30% | 28% |
| Professional services and real estate | 55% | 46% | 49% | 20% | 23% |
| Non-manufacturing goods production | 51% | 51% | 44% | 26% | 23% |
| Finance and insurance | 45% | 49% | 35% | 24% | 28% |
Financial Stress Indicators by Industry Sector
Financial stress does not always translate into higher approval rates or increased borrowing.
| Industry | Poor/Fair Financial Condition | Top Financial Challenge | Credit Access Challenge | Discouraged Rate |
|---|---|---|---|---|
| Leisure and hospitality | 73% | Cost increases (90%) | 26% | 12% |
| Retail | 66% | Tariffs (69%) | 30% | 8% |
| Healthcare and education | 66% | Operating expenses (67%) | 27% | 12% |
| Manufacturing | 58% | Tariffs (62%) | 33% | 8% |
| Non-manufacturing goods production | 57% | Cost increases (76%) | 37% | 12% |
| Business support and consumer services | 56% | Cost increases (69%) | 25% | 12% |
| Professional services and real estate | 46% | Cost increases (60%) | 26% | 8% |
| Finance and insurance | 33% | Cost increases (55%) | 23% | 7% |
Interpretation: Industry Financing Patterns
Collateral Drives Funding Outcomes
Asset-rich industries consistently achieve higher funding rates, while service-oriented sectors like healthcare face greater approval constraints despite strong borrowing needs.
Cost Pressure Drives Demand
Tariffs and rising costs are concentrated in goods-producing sectors, increasing borrowing demand and application rates.
Hidden Demand Remains Significant
Discouraged borrower rates (up to 12%) indicate unmet financing demand not captured in application data. Cross-reference approval rates by lender type for additional context.