Biz2Credit Small Business Lending Index for July 2013 Reports Jump in Big Bank Approval Rates and the End of the Credit Union Slide

Overall Improvement in the Economy Bodes Well for Entrepreneurs in Search of Capital, According to Biz2Credit Study

NEW YORK, NY, August 6, 2013 - Small business loan approvals at big banks ($10 billion+ in assets) jumped to an all-time index high of 17.4% in July 2013 from 16.9% in June, according to the ahrefstartBiz2Credit Small Business Lending Indexahrefend, a monthly analysis of 1,000 loan applications on Biz2Credit.com.

Big Banks

Big Banks

Further, in a year-to-year comparison, big bank approval rates have increased by more than 50 percent.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"The 2012 tax returns have provided the big banks with financial information that indicates many small businesses are doing better now than they were during the past few years. Thus, the banks are more willing to allocate capital for small business loans, resulting in the uptick in approval rates,"

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"These were the best post-recession lending figures we have seen from the Biz2Credit Small Business Lending Index."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small business loan approvals made by credit unions improved to 45.1% in July, up from 44.8% in June 2013. This ended a 13-month slide in which lending approvals plummeted more than 20 percent.Loan approvals at small banks dropped slightly to 49.4% in July from 49.8% in June. In a year-to-year comparison, lending approvals at small banks is still slightly higher than it was at the same point last year.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"Approvals at small banks were down slightly in July, in part, because the big banks -- which have better brand recognition and sometimes offer better rates -- are cutting into their market share,"

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Small business loan approvals by alternative lenders dropped to 63.2% in July from 63.4% the previous month. Approval rates are slightly lower than they were at the same point last year, and indications are that alternative lending may have peaked.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

Credit unions

Credit unions

approvals at credit unions improved for the first time in more than a year, ending a 13-month slide in which approval rates plummeted over 20 percent.Small banks and alternative lenders experienced slight dips in approval percentages in July 2013.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"We are beginning to see larger credit unions investing in SBA loans. Possessing the license to carry out SBA loans is a huge advantage that the credit unions have over alternative lenders, and they are starting to promote this aggressively,"

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

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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
May 2019

Small Business Loan Approvals at Big Banks Stay at Record Post-Recession High, According to May 2019 Biz2Credit Small Business Lending IndexTM

Small Banks and Institutional Lenders Climb, Credit Union Lending Remains at Post-Recession Low, Alternative Lending Stalls Again

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.