Big Bank Approval Rates for Small Business Loans Hit Record High for the Third Consecutive Month, According to August 2014 Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend

Institutional Lenders Slowly and Steadily Become a Force in Small Business Finance

Small business loan approval rates at big banks reached a post-recession high for the third consecutive month, according to the August 2014 Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend , the monthly analysis of 1,000 loan applications on Biz2Credit is on line lending platform.

Big Banks

Big Banks

Small business loan approval rates at big banks ($10 billion+ in assets) rose to 20.4% in August from 20.1% in July.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"Big banks are utilizing their brand recognition and their investment in technology that makes processing of non-SBA loans more swift and efficient,"

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"As the economy has improved, and the optimism of small business owners seems to be strong, entrepreneurs are willing to invest in their growth potential. Big banks are aggressively pursuing small business loan-making and are attracting higher quality customers from competitors."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

while the percentage of loans granted by small banks slipped to 50.6% from 50.9% last month.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Meanwhile, institutional lenders granted 59.4% of the funding requests they received in August, a slight increase from 59.3% in July. Approval rates have risen every month since Biz2Credit began monitoring the category in January 2014.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

"Institutional investors are quickly becoming important players in small business lending, and they are taking market share from alternative lenders," added Arora, one of the nation's leading experts in small business lending. "Meanwhile, the interest rates charged by non-bank lenders continue to drop. This benefits entrepreneurs in search of capital."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Approval rates at alternative lenders -- merchant cash advance companies, factors, and other non-bank institutions -- slipped for the seventh consecutive month to 62.7% in August, from 62.9% in July.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

Credit Unions

Credit unions

Credit unions granted 43.4% of loan applications in August, down from 43.5% the previous month.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"The financial health of small businesses has improved over last 12 months thus creating a demand for more reasonably priced, longer term products which institutional players -- insurance companies, credit funds, family funds, and other yield-hungry, non-bank financial institutions -- can provide".

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

Access Archives

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
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

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.