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
Small business loan approval rates at big banks ($10 billion+ in assets) rose to 20.4% in August from 20.1% in July.
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"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, Biz2Credit CEO

"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, Biz2Credit CEO
Small Banks
while the percentage of loans granted by small banks slipped to 50.6% from 50.9% last month.
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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.
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"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, Biz2Credit CEO
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.
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Credit unions
Credit unions granted 43.4% of loan applications in August, down from 43.5% the previous month.
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"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, Biz2Credit CEO
View Past Months
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October 2019 |
Big Banks’ Small Business Loan Approvals Hit New Record in October, According to Biz2Credit Small Business Lending Index™ |
Strength seen in lending by big banks, small banks, and institutional investors last month |
View Report |
September 2019 |
Small Business Loan Approvals at Big Banks Hit New Record in September, According to Biz2Credit Small Business Lending Index™ |
View Report |
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 |
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.