The NFIB small business optimism index is 104.0 for month of September. This represents a 3.8-point increase over the prior month’s level of 100.2. This uptick is one of the strongest month over month gains over the last five years. The September level is also 13.9 points higher than the April 2020 low point of 90.1 and is even higher than the September 2019 level of 101.8. This shows a remarkable shift in small business confidence and bodes well for the sustainability of the new economic recovery.

Small Business Optimism Soars

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

Small Business Optimism Soars in September

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