Biz2Credit Small Business Lending Index™ Reports Approval Rates Inched Upward in April 2022
Total nonfarm payroll employment increased by 428,000 in April, and the unemployment rate was unchanged at 3.6%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics released on Friday, May 6. Job growth was widespread, led by gains in leisure and hospitality, in manufacturing, and in transportation and warehousing. 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. To view the report for April 2022.
“Small business lending approval rates continue to take incremental steps, but we are still nowhere near pre-pandemic highs,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business lending and FinTech.
“With the Federal Reserve raising interest rates last week, the cost of capital for small business borrowers will rise,” added Arora. “This will have an impact on future borrowing decisions. Most small business loans come with variable rates, and in the foreseeable future, those rates are likely to rise.”
About Biz2Credit Small Business Lending Index™
The Biz2Credit Small Business Lending Index™ 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 Index™ 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.