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April / 2022

Biz2Credit Small Business Lending Index™ Reports Approval Rates Inched Upward in April 2022

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Big BanksImage
Banks with assets greater than $10 billion
Small business loan approval percentages at big banks ($10m + in assets) rose from 14.9% in March to 15.1% in April

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.

Monthly Comparison
+0.2%
15.1%
April 2022
14.9%
March 2022
Yearly Comparison
+1.7%
15.1%
April 2022
13.4%
April 2021
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“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.

Rohit Arora
Biz2Credit CEO
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Small Banks Image
Banks with assets less than $10 billion
Small banks’ approvals also increased from 20.6% in March to 20.8% this past month, according to the latest Biz2Credit Small Business Lending Index™ released today
Monthly Comparison
+0.2%
20.8%
April 2022
20.6%
March 2022
Yearly Comparison
+2.6%
20.8%
April 2022
18.2%
April 2021
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Institutional Lenders Image
Investment groups or large investment portfolios such as insurance funds, mutual funds and hedge funds
Institutional lenders approved 25.4% of funding requests in April, up one-tenth of a percent from 25.3% in March.
Monthly Comparison
+0.1%
25.4%
April 2022
25.3%
March 2022
Yearly Comparison
+1.9%
25.4%
April 2022
23.5%
April 2021
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Alternative Lenders Image
Independent lending organizations not licensed as banks or credit unions
Alternative lenders’ approval rates rose from 26.6% in March to 26.8% in April.
Monthly Comparison
+0.2%
26.8%
April 2022
26.6%
March 2022
Yearly Comparison
+2.8%
26.8%
April 2022
24.0%
April 2021
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“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.”

Rohit Arora
Biz2Credit CEO
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Credit Unions Image
Non-profit money cooperatives whose members borrow from pooled deposits
Credit unions stalled at 20.6% in April after dropping one-tenth of a percent in March.
Monthly Comparison
0.0%
20.6%
April 2022
20.6%
March 2022
Yearly Comparison
+0.3%
20.6%
April 2022
20.3%
April 2021

The Report

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.