Biz2Credit Small Business Lending Index™ Finds April 2021 Non-PPP Loan Approval Rates Move Little for All Types of Lenders

Small business leading

Biz2Credit Small Business Leading IndexTM

Biz2Credit Small Business Lending Index™ Reports Loan Approval Rates at Banks Dipped Slightly in April 2021

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) dipped slightly to 13.4% in April from 13.5% in March 2021, according to the latest Biz2Credit Small Business Lending Index™ released today. The Bureau of Labor Statistics reported nonfarm payroll employment rose by 266,000 in April, while the unemployment rate was little changed at 6.1%, the U.S. Bureau of Labor Statistics reported on Friday, May 7. Notable job gains occurred in leisure and hospitality and other services. Many of these jobs are created by small businesses. Biz2Credit analyzed loan requests from companies in business more than two years with credit scores above 680. The results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit's platform.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“Traditional small business loans are hard to obtain at the moment, much more so that they were before the pandemic,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business finance. “Banks have been flooded with applications for Paycheck Protection Program (PPP) loans since the program entered its second round.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals dropped to 18.2% in April, down one-tenth of a percent from 18.3% in March.

March 2020
38.9%
April 2020
11.8%

Monthly Comparison

April 2019
49.8%
April 2020
11.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Institutional lenders approved 23.5% of funding requests last month, up from 23.3% in March.

March 2020
41.2%
April 2020
18.1%

Monthly Comparison

April 2019
65.3%
April 2020
18.1%

Yearly Comparison

Alternative lenders

Alternative lenders

Alternative lenders rose one-tenth of a percent to 24.0% in April from 23.9% in March.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“Institutional lenders and alternative lenders say slight increases in approval rates, but we are still far from where we were before the coronavirus hit in March 2020,” Arora said. “Hopefully, as the infection rates decline and the economy shows signs of recovery, small business loan approvals will begin a steadier upward trend for all categories of lenders.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions dipped to a 20.3% approval rate in April, down a notch from 20.4% in March 2021.

March 2020
23.2%
April 2020
18.1%

Monthly Comparison

April 2019
40.1%
April 2020
18.1%

Yearly Comparison

View Past Months

Access Archives

July 2021

Biz2Credit Small Business Lending Index™ Finds Loan Approval Rates Rose at Banks and at Institutional and Alternative Lenders in July 2021

View Report
June-2021

Biz2Credit Small Business Lending Index™ Finds June 2021 Loan Approval Rates Increased for All Categories of Lenders

View Report
May-2021

Now That PPP Lending Has Ended, Biz2Credit Small Business Lending Index™ Finds May 2021 Loan Approval Rates Increase for Banks and Non-Bank Lenders

View Report
April-2021

Biz2Credit Small Business Lending Index™ Finds April 2021 Non-PPP Loan Approval Rates Move Little for All Types of Lenders

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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.