Biz2Credit Small Business Lending Index™ for February 2022 Finds Approval Rates Continue to Rise

Approval Percentages at Banks and Non-Bank Lenders Are Roughly Half of What They Were at Their Peak in February 2020

Small business leading

Biz2Credit Small Business Leading IndexTM

Biz2Credit Small Business Lending Index™ Reports Loan Approval Rates at Banks Roses in February 2022

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) rose from 14.5% in January to 14.7% in February. Total nonfarm payroll employment rose by 678,000 in February, and the unemployment rate was decreased to 3.8%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics on Friday, Mar. 4. Employment growth continued in leisure and hospitality, in professional and business services, in health care, and in construction. 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. To view the report for February 2022.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“Two years ago, bank approval percentages were almost double what they are today for all categories of lenders,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business lending and FinTech. “For instance, in February 2020, big banks approved 28.3% of loan requests, while small banks approved more than half (50.3%) of loan applications.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also increased from 20.3% in January to 20.5% in February, according to the latest Biz2Credit Small Business Lending Index™ released today.

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 25.2% of funding requests in January, up one-tenth of a percent from 25.1% in January.

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’ approval rates rose from 26.3% in January to 26.5% in February.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“Non-bank lender percentages in 2020 were even higher: institutional lenders approved nearly two-thirds (66.5%) of small business loan requests, at the time an all-time high. Meanwhile, alternative lenders granted 55.9%, and credit unions approved 39.6%,” added Arora, who has overseen Biz2Credit’s index for more than a decade. “We have a long way to go before we reach those marks again – if we ever do.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions remained stagnant at 20.7% in February.

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

March 2022

Biz2Credit Small Business Lending Index™ for March 2022 Finds Approval Rates Rise Once Again

View Report
February 2022

Biz2Credit Small Business Lending Index™ for February 2022 Finds Approval Rates Continue to Rise

Approval Percentages at Banks and Non-Bank Lenders Are Roughly Half of What They Were at Their Peak in February 2020

View Report
January 2022

Biz2Credit Small Business Lending Index™ for January 2022 Finds That Loan Approval Rates Increased for Every Category of Lender

Approval Percentages at Big Banks, Small Banks, Institutional Lenders, Alternative Lenders and Credit Union Still Are Roughly Half of What They Were in January 2020

View Report
December 2021

Biz2Credit Small Business Lending Index™ for December Finds Loan Approval Rates Continue to Rise, But at Slow Pace

Approval Percentages at Big Banks, Small Banks, Institutional Lenders, Alternative Lenders and Credit Union Still Are Roughly Half of What They Were in December 2019

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.