Biz2Credit Small Business Lending Index™ for August Finds Loan Approval Rates Rise at Banks and at Non-Bank Lenders

Small business leading

Biz2Credit Small Business Leading IndexTM

Biz2Credit Small Business Lending Index™ Reports Loan Approval Rates at Banks Roses in August 2021

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) jumped from 13.8% in July 2021 to 13.9% in August, up by three-tenths of a percentage from one year ago. Total nonfarm payroll employment rose by 235,000 in August, and the unemployment rate declined by 0.2 percentage point to 5.2 percent, the Bureau of Labor Statistics reported on Friday, Sept. 3. Notable job gains occurred in leisure and hospitality, and in professional and business services, transportation and warehousing, private education, and manufacturing. 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.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“Small businesses are again borrowing to improve their cash flow and for growth,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business finance. “Approval percentages rose at both big banks and small banks.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also rose from 19.1% in July to 19.3% in August, according to the latest Biz2Credit Small Business Lending Index™ released today. The approval percentage at small banks is up eight-tenths of a percent from last year.

March 2020
38.9%
April 2020
11.8%

Monthly Comparison

April 2019
49.8%
April 2020
11.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Institutional lenders approved to 24.3% in August, up from 23.9% of funding requests in July and up 2.2 percentage points from one year ago.

March 2020
41.2%
April 2020
18.1%

Monthly Comparison

April 2019
65.3%
April 2020
18.1%

Yearly Comparison

Alternative lenders

Alternative lenders

Alternative lenders approved rose almost a percent from 24.7% in July to 25.2% of funding applications in August 2021. Last year, the August percentage for alternative lenders was 23.0%.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“Non-banks lenders continue to be a good source of capital for small business owners,” Arora said. “They typically focus less on FICO scores and more on the financial health of the borrowers who are applying for funding. This is especially true for institutional lenders and alternative lenders.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions approved 20.5% in August, the same percentage as the two previous months, but down from 21.1% in August 2020.

March 2020
23.2%
April 2020
18.1%

Monthly Comparison

April 2019
40.1%
April 2020
18.1%

Yearly Comparison

View Past Months

Access Archives

July 2021

Biz2Credit Small Business Lending Index™ Finds Loan Approval Rates Rose at Banks and at Institutional and Alternative Lenders in July 2021

View Report
June-2021

Biz2Credit Small Business Lending Index™ Finds June 2021 Loan Approval Rates Increased for All Categories of Lenders

View Report
May-2021

Now That PPP Lending Has Ended, Biz2Credit Small Business Lending Index™ Finds May 2021 Loan Approval Rates Increase for Banks and Non-Bank Lenders

View Report
April-2021

Biz2Credit Small Business Lending Index™ Finds April 2021 Non-PPP Loan Approval Rates Move Little for All Types of Lenders

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.