A majority of small business owners who received tax refunds plan to invest that money back into their businesses, according to a new survey from Balboa Capital, a small business loan provider and business financing company.
The survey, which was conducted to gauge small business owners’ views of the economy and to find out what they intend to do with their tax refunds, was sent to more than 300,000 business owners nationwide last month.
Among small business owners who completed their taxes in 2016, 14 percent received a tax refund, while 56 percent did not.
Of those who received tax refunds, three in four said they intend to use that money for either equipment or technology acquisition, debt consolidation, expansion initiatives, and/or increased employee hiring.
In addition, 75 percent of small business owners used the Section 179 tax deduction to deduct the full or partial price of business equipment that was purchased and put into place in 2015, according to the survey.
“Small business owners had a strong first quarter and are anticipating a hike in economic growth during the first half of 2016, and this is leading to increased confidence and business investing,” Jake Dacillo, director of marketing at Balboa Capital, said in a written statement. “Business owners were also surveyed on the types of financing they secured in Q1, and small business loans and equipment financing top the list.”
Other key findings of the survey include:
Seventy-six percent of small business owners reported moderate to significant revenue increases in the first quarter.
Seventy-nine percent expect to see growth in the US economy during the first half of 2016.
National Small Business Week is May 1 through May 7.