Biz2Credit Small Business Lending Index Reports Jump in Lending Approvals at Big Banks for April 2013

Monthly Index Reports All-Time Index High in Approval Rates by Big and Small Banks; Credit Unions Continue to Slump

NEW YORK, NY, May 9, 2013-Small business loan approval rates improved to an all-time index high of 16.8% at big banks, according to the ahrefstartBiz2Credit Small Business Lending Indexahrefend , a monthly analysis of 1,000 loan applications on Biz2Credit.com.

Big Banks

Big Banks

Lending approvals at big banks bounced back in April after experiencing a minor setback in March when approval ratings were at 15.7%. More importantly, in a year-to-year comparison approvals at big banks are up over 50 percent.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

“Big banks such as td Bank, Sovereign and Wells Fargo are investing heavily in new technology to increase speed and service of approvals,”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"As the economy continues to rebound, lending conditions are gradually improving. Higher credit-quality customers are electing to apply to loans from big banks first, now that they are willing to lend and the service has improved.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Lending approvals at small banks increased for the fifth consecutive month, again reaching a new all-time index high of 50.9%. This rate shows a slight increase from the 50.8% figure in March 2013. However, a year-to-year comparison indicates over a 10 percent increase in approvals from the April 2012 figures.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

“Small banks continue to be an aggressive player in small business lending, but must maintain focus on advancements in technology to remain competitive in lending or the big banks will take over”, “Big banks possess the element of brand recognition and can generally offer better rates than small banks, so it is essential small banks offer an advantage and continue to process loans quicker.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

Credit Unions

Credit unions

Credit union ahrefstartapprovals of small business loansahrefend continued to plummet, dropping to 45.2%, from 45.5%in March 2013. There is no indication that this trend will reverse soon. Further, loan approval rates sit at an all-time Index low for credit unions.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

“The return of big banks to the small business credit market does not bode well for credit unions. For the credit unions,""In order to bounce back in small business lending, they must improve their technology and expedite the loan-making process.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

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October 2019

Big Banks’ Small Business Loan Approvals Hit New Record in October, According to Biz2Credit Small Business Lending Index™

Strength seen in lending by big banks, small banks, and institutional investors last month

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September 2019

Small Business Loan Approvals at Big Banks Hit New Record in September, According to Biz2Credit Small Business Lending Index™

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Aug 2019

Small Business Loan Approvals at Banks Continue to Reach New Heights, According to August 2019 Biz2Credit Small Business Lending Index™

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July 2019

Small Business Loan Approvals at Banks Hit Record Highs, According to July 2019 Biz2Credit Small Business Lending IndexTM

Alternative Lending Drops and Credit Unions Sink to a Record Low

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About Biz2Credit Small Business Lending IndexTM

The Biz2Credit Small Business Lending IndexTM is an analysis of 1,000 monthly loan applications on the Biz2Credit website. The Index reports the loan approval rates of small business financing requests at Big Banks ($10 billion+ in assets), local and regional banks and non-bank lenders (credit unions, Community Development Financial Institutions (CDFI), micro lenders, and others).

Unlike other surveys, the results are based on primary data submitted by more than 1,000 entrepreneurs who applied for funding on Biz2Credit's online lending platform, which connects small business borrowers with sources of capital.

Results of the Biz2Credit Small Business Lending IndexTM have been reported by The Wall Street Journal, Bloomberg BusinessWeek, Entrepreneur.com, Bloomberg Radio's "The Hays Advantage", SBA Radio, NY Daily News, Crain's NY Business, Michigan Banker, and other media.