New report reveals experiences and financing behaviors of nonemployer firms on the cusp of hiring staff
A new report titled “2025 Report on Nonemployer Firms: Findings on Hiring Plans from the 2024 Small Business Credit Survey” delves into the experiences and challenges of nonemployer firms—those with no paid employees except the owner(s)—that are on the verge of transitioning into employer firms.
Just released by the Federal Reserve, the report finds that while “potential employers,” or nonemployers that plan to add employees in the next 12 months, are more likely to apply for financing, they face higher denial rates than “stable” nonemployers, or those that do not plan to add employees during the same period. Also explored are financial performance and the types of financing various firms tend to use.



