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

Small business leading

Biz2Credit Small Business Leading IndexTM

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

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 + in assets) increased from 14.3% in December to 14.5% in January. Two years ago, bank approval percentages were almost double what they are today. In January 2020, big banks approved 28.3% of loan requests. Total nonfarm payroll employment rose by 467,000 in January, and the unemployment rate was little changed at 4.0%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics on Friday, Feb. 4. Employment growth continued in leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing. 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 January 2022.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“Banks and most non-bank lenders are showing slow but steady increases in their loan approval percentages, as business owners look to reinvest in their businesses,” said Rohit Arora, CEO of Biz2Credit, one of the nation’s leading experts in FinTech and small business lending. “Still, approval percentages are rising slower than anyone had hoped. An expected increase in interest rates from the Federal Reserve may entice them to open the purse strings a little bit more. Loan approval rates are still far below pre-COVID approval levels of January 2020.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also rose from 20.1% in December to 20.3% in January, according to the latest Biz2Credit Small Business Lending Index™ released today. Two years ago, bank approval percentages were almost double what they are today. In January 2020, small banks approved 50.4% of loan applications

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 25.1% of funding requests in January, up two-tenths of a percent from 24.9% in December. Two years ago, bank approval percentages were almost double what they are today. In January 2020, institutional lenders approved nearly two-thirds (66.4%) of requests

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 26.1% in December to 26.3% in January. Two years ago, bank approval percentages were almost double what they are today. In January 2020, alternative lenders granted 56.1%.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“The COVID crisis accelerated the shift towards digital lending to small businesses. More and more small business owners are now more comfortable in borrowing or applying for credit online, which wasn't the case prior to the pandemic,” Arora said. “Banks and non-bank lenders are looking to digitize their small business loan application process. Digital learning and AI have helped reduce lending risk, while digitizing has streamlined the process and reduced the time it takes to make a decision.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions approved 20.7% in January, up one-tenth of a percentage after stalling the prior two months. Two years ago, bank approval percentages were almost double what they are today. In January 2020, credit unions approved 39.6%.

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.