Biz2Credit Small Business Lending Index for August 2013 Reports Record Big Bank Approval Rates for Second Straight Month While Small Banks Granted More Than Half of Loan Requests

Analysis Finds Slight Increase in Credit Union Approvals, Small Dip by Alternative Lenders

NEW YORK, NY, September 10, 2013 - Small business loan approvals at big banks ($10 billion+ in assets) jumped to an all-time index high of 17.6% in August 2013 from 17.4% in July, according to the ahrefstartBiz2Credit Small Business Lending Indexahrefend, a monthly analysis of 1,000 loan applications on Biz2Credit.com.

Big Banks

Big Banks

In a year-to-year comparison, big bank approval rates have increased by more than 62 percent from the 10.9% approval rate in August 2012. It is the second straight record month for loan approvals by big banks.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

Small Banks

Small Banks

Small banks granted more loan requests than they rejected as approvals rose to 50.7% in August from 49.4% in July. Credit union lending also improved slightly to 45.3% in August, up from 45.1% last month. It is the second consecutive month of increases for credit unions after more than a year of declines. Alternative lender approvals of small business loans dropped to 63.1% in August from 63.2% in July.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"Banks, both large and small, are becoming more aggressive in small business lending since it has proven to be a profitable part of their portfolios." "Additionally, banks typically attract higher quality borrowers than credit unions and alternative lenders, so they are becoming more apt to grant loan requests. Five years after the Great Recession, small business lending landscape is better than at any time since 2008."

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

"The resurgence of small business loan-making at traditional banks is impacting alternative lenders, who generally charge higher interest rates". "Borrowers would rather apply to banks with brand names that they trust, particularly since they are easing their lending criteria and granting more loans than at any time since the recession."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

View Past Months

Access Archives

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
May 2019

Small Business Loan Approvals at Big Banks Stay at Record Post-Recession High, According to May 2019 Biz2Credit Small Business Lending IndexTM

Small Banks and Institutional Lenders Climb, Credit Union Lending Remains at Post-Recession Low, Alternative Lending Stalls Again

View Report
April 2019

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

Credit Union Lending Remains at Post-Recession 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.