Bank Loan Approval Rates Continued to Climb in August 2017, According to Biz2Credit Small Business Lending Index^TM

"It's a good time for bank lending; the big banks are approving nearly a quarter of the loan requests they receive from small businesses while the smaller banks are granting almost half of the funding applications they receive."

"The economy is holding up well: the job market is strong, oil prices are still relatively low, and home values have gone up, which makes entrepreneurs feel more secure and confident."

"The dollar is strong, and there is also hope that President Trump's promised tax cuts will pass and spur more economic growth," added Arora, one of the country's leading experts in small business finance. "With interest rates up a bit, it's profitable for lenders to close deals. Thus, bank lending is as strong as it has been the mid-2000s. Despite the daily drama in Washington, global growth has picked up, and the U.S. economy seems to be on solid footing."

"Alternative lenders still are players in small business lending because they are willing to provide funding for borrowers who have less than stellar credit or little credit history at all," Arora explained. "Since they accept higher risk by funding borrowers who do not have stellar credit histories, alternative lenders charge at a higher cost of capital."

"Credit unions continue to lose their relevance in small business lending because they have not invested in technology and are often slow in their deal-making," Arora explained. "Further, the credit union member business-lending (MBL) cap has not risen above 12.25% of assets. This remains an ongoing issue."