Government Shutdown Slows SBA Lending Volume, But Approval Percentage Dip Only Slightly in January, According to Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend

Overall Economic Strength Still Bodes Well for Small Businesses in Search of Capital

Although the U.S. Small Business Administration (SBA) was closed for most of January because of the government shutdown, the percentage of SBA loan approvals dropped by just one percent in January at regional and community banks, which process the bulk of the government-backed loans.

Big Banks

Big Banks

ahrefstartSmall business loanahrefend approval rates for big banks remained at a record high 27% in January 2019, according to the Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend, which examines more than 1,000 small business credit applications made via its online lending platform. "Beth Goldberg, Director of SBA's New York District, the agency's largest of 68 offices across the country, said that SBA processed more than 1,100 7(a) loans worth half a billion dollars in its first week back after the shutdown. ."
Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"The government shutdown ultimately did not have a major impact on small business lending," one of the nation's leading experts in small business finance.

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy
"Our top priority was and continues be to working with SBA lenders to approve and process small business loans to get capital into the hands of the businesses that need it," Goldberg said. "Remember that through the shutdown, SBA's Resources Partners - Small Business Development Centers, SCORE Chapters and Women's Business Centers continued to work with entrepreneurs, counseling them on all aspects of their businesses."
"Goldberg added that since reopening on January 28th, her office has guaranteed more than 200 SBA loans worth $59.3 million. " "Meanwhile, the Jobs Report released on Feb. 1 saw an unexpected rise in job creation, and Federal Reserve opted not to raise interest rates at its first meeting of the year. "

"There are still hurdles, however. Many companies are waiting for SBA loans that have not yet been processed."

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Business loan approval rates dropped three-tenths of a percent at regional and community banks in December 2018. Small bank approvals dropped a full percentage point from 49.9% in December 2018 to 48.9% in January.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

" Overall, the economy is still performing well on many levels, " who oversees the research. "This is beneficial to the small business lending market."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Institutional lenders

Institutional lenders

Institutional lenders climbed up to 65.1 %, a jump of three-tenths of a percent from December's mark of 64.8%.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

Alternative lenders

Alternative lenders

Loan approval rates among alternative lenders rose from 56.6% in December to 57.3% in January, a jump of seven-tenths of a percent.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

"As SBA lending stalled during the shutdown, alternative lenders took advantage of the opportunity by lending money to business owners in need of quick capital". "Non-bank lenders fill the gaps many times for borrowers who cannot get money from traditional sources."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions approvals increased to 40.3% of loan applications in January, up one-tenth of a percentage from December, according to the Biz2Credit Index.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"Despite the government shutdown, January was a solid month for small business lending."

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

Access Archives

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
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

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.