Small Business Loan Approvals at Banks Jumped Again in April Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend

Credit Union Lending Remains at Post-Recession Low

The approval percentage for ahrefstartsmall business loanahrefend applicants hit a record high of 27.5% at big banks ($10 billion+ in assets) in April, up one-tenth of a percent from March, according to the Biz2Credit Small Business Lending IndexTM released today. Approval percentages at small banks jumped four-tenths of a percent in April to 49.8%.

Big Banks

Big Banks

The approval percentage for small business loan applicants hit a record high of 27.5% at big banks ($10 billion+ in assets) in April, up one-tenth of a percent from March.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

Meanwhile, in the Jobs Report released on May 5, the Labor Department reported that employment increased by 263,000 in April, while the unemployment rate declined to 3.6 percent. The industries with notable job gains were professional and business services, construction, health care, and social assistance.

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy
The NFIB Small Business Optimism Index increased in April to a historically strong level. This is an indication that small businesses continue to power the economy after being briefly shaken by January's government shutdown, according to the NFIB.
"Approvals by banks of all sizes continue to climb. The economy is still strong, and small business optimism is high."who oversees the monthly research derived from more than 1,000 small business credit applications on his company's online lending platform.

"Small business lending is as strong as it has ever been in the 21st century's post-recession era."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small bank approvals of small business loan applications climbed from 49.4% in March to 49.8% last month.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"After February passes, the SBA wants the previous year's tax returns. Once taxes are filed, SBA lending, which is particularly important to small banks, picks up". "The backlog is over, and small banks are lending."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Institutional lenders

Institutional lenders

Institutional lenders slipped a notch 65.3%, up a notch from 65.4% in March.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

"Even with a little hiccup, institutional lenders are approving nearly two-thirds of the funding requests they receive."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Loan approval rates among alternative lenders dropped one-tenth of a percent to 57.2% in April, down a notch from 57.3% in March.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

"Alternative lenders have had a lot of losses, and there has been a bit of pull-back". "Banks are lending, and they can offer more attractive rates and terms than alternative lenders can. The banks are getting their applications from higher quality borrowers."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions remained at a record low 40.1% of loan applications in April.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"Credit unions are beginning to look for FinTech partners to help them upgrade their technology," who oversees the Biz2Credit research. "They have to respond to the marketplace, and Millennials simply won't take the time to walk in and become a member in order to fill out a loan application. Digitizing the process will help."

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

Access Archives

September 2019

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

View Report
Aug 2019

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

View Report
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

View Report
June 2019

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

Big Banks, Regional and Community Banks, and Institutional Lenders Climb, While Alternative Lending Drops and Credit Unions Sink to New Low

View Report

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.