Just 28 percent of small businesses applied for small business bank loans in the last year, a record low, according to a National Small Business Association survey. Over the same period, 44 percent of those businesses used credit cards to cover capital expenses such as start-up costs and business equipment.

The survey also noted that 57 percent of business owners reported that their credit card terms, such as interest rates and grace periods, have gotten worse this year.

In addition, 63 percent of small business owners indicated that creditors reduced credit lines in September. In August, just 50 percent of small business owners reported reduced or eliminated credit lines, according to data provided by American Express.

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