75% of Small Business Owners Tapped Personal Credit for Business Expenses, Bluevine Study Finds

New national survey reveals lack of loan preparation puts personal financial health at risk, contributing to delays or denials for 1 in 4 applicants.

JERSEY CITY, N.J., July 29, 2026 /PRNewswire/ -- A new national survey published today by Bluevine—the largest digital banking platform for small businesses in the U.S.*—reveals that small business financing challenges are often driven by a gap in preparation and financial literacy rather than a lack of available capital. According to the study of more than 800 U.S. small business owners, 25% of their recent business financing applications were delayed or denied due to avoidable application mistakes, driving many founders to compromise their personal financial health.

The findings highlight a critical disconnect: While roughly two-thirds (65%) of SMB owners applied for a business line of credit or term loan in the past 12 months, the vast majority skipped fundamental preparation steps. A striking 73% of respondents admitted they did not research lender approval requirements beforehand, 72% failed to update their financial statements, and 56% did not check their business credit score before hitting submit.

These preparation gaps frequently force owners to rely on personal financing to keep operations afloat, with 75% of small business owners self-reporting that they used personal credit cards or personal loans for business expenses over the last year. This marks a massive jump from Bluevine's 2025 data, where 49% of owners reported using a personal card to cover business expenses.

"Using personal credit cards for business expenses can create risk beyond utilization," said Aditya Narula, Senior VP & GM of Lending & Credit at Bluevine. "It can blur personal and business finances, limit the owner's ability to build business credit, and make tax or cash-flow tracking harder. Over time, it may constrain personal borrowing capacity for a mortgage, car loan, or emergency needs. A stronger application starts before the application itself."

Additional Key Findings

• The Early-Stage Vulnerability: Business owners whose companies are five years old or younger struggle the most with the process. Over half (54%) experienced issues with their most recent application, compared to just 24% of established businesses (six years or older). Furthermore, 44% of newer owners rely on personal credit cards, and 20% utilize personal loans for business needs.
• The Personal Toll of Mixed Finances: Relying on personal credit is actively harming small business owners' private lives. Of the 41% of owners who currently use personal credit cards for business expenses, more than 4 in 5 (42%) say it has negatively affected their personal finances, including increasing personal credit utilization (23%), creating household stress or conflict (16%), and lowering personal credit scores (12%).
• Application Surprises: Among the 37% of SMB owners who ran into roadblocks during their most recent application, 12% were caught off guard by how long processing took, 11% discovered their credit score was lower than expected, and 8% applied without understanding lender requirements.
• Financing Alleviates Stress: Access to proper business financing remains vital to operational health. Sixty-eight percent (68%) of small business owners state that having a dedicated business line of credit or term loan significantly reduces their stress about covering upcoming expenses or emergencies.

"A prepared application can materially speed up the process because it reduces back-and-forth," Narula added. "Current P&Ls, recent bank statements, accurate business information, and a clean credit profile help lenders verify your business faster. The biggest unlock is consistency: when documents, revenue, ownership, and credit history tell the same story, decisions move faster."

For a deeper dive into real-world credit behavior and advice on navigating the application process, read the full findings here.

Methodology

The survey was conducted online by Centiment for Bluevine between May 12, 2026, and May 13, 2026. The results are based on 864 completed surveys from U.S. adults aged 18 and older who were verified as small business owners. The data is unweighted, and the margin of error is approximately ±3% for the overall sample with a 97% confidence level.

* As compared to publicly available data on the number of lifetime customer accounts held by other U.S. banking platforms dedicated to small businesses that offer both checking and lending services, as of June 2026.

About Bluevine

Bluevine is the largest small business banking platform in the U.S., serving as the financial operating system for startups and small businesses. Through a single account, companies can earn more, save more, borrow, and manage their money whenever and wherever they do business - without ever stepping into a branch. Accessible through one dashboard, its product suite integrates high-yield business checking, accounts payable, debit and credit cards, loans, and lines of credit. Since 2013, Bluevine has served over 1 million customers, delivered over $17 billion in loans, and is currently trusted with over $2 billion in managed customer deposits. Bluevine has been named as the Best Online BusinessChecking Account by Nerdwallet for 2026 and recognized as one of CNBC's World's Top Fintech Companies in 2026.

Bluevine is backed by leading private and institutional investors, including Lightspeed Venture Partners, Menlo Ventures, 83North, Citi Ventures, ION Crossover Partners, SVB Capital, Nationwide, and M12 (Microsoft's Venture Arm). Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Lines of credit are issued by Celtic Bank. For more information, please visit bluevine.com or follow us on LinkedIn, Instagram, Facebook, and X.

SOURCE Bluevine