Biz2Credit Small Business Lending Index for June 2013 Reports Slight Dip in Approvals at Big Banks and Credit Unions, Slight Increases in Approval Percentages by Regional Banks and Alternative Lenders

SBA Express Loan Applications and Approvals Expected to Rise in Second Half of the Year, According to Biz2Credit CEO Rohit Arora

NEW YORK, NY, July 9, 2013 - Small business loan approvals at big banks ($10 billion+ in assets) and credit unions all dipped slightly in June 2013, while approval rates inched higher at small banks and alternative lenders, according to the ahrefstartBiz2Credit Small Business Lending Indexahrefend, a monthly analysis of 1,000 loan applications on Biz2Credit.com.

Big Banks

Big Banks

loan approvals at big banks dropped to 16.9% from the all-time Index high of 17.3% in May 2013. However, in a year-to-year comparison, small business lending approvals at big banks are up 52 percent over the figure from June 2012.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"While approvals dropped slightly at big banks in June, overall small business lending rebounded in the first half of 2013. Banks, both large and small, are granting loan requests at much higher rates than they did a year ago,"

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"Small banks gained a slight bit of market share because they are more adept at offering SBA Express loans, typically under $350,000, which are easier to finalize and come without fees. When big banks start processing more SBA Express loans, we will likely see the approval percentages go up. I expect that this will happen."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Loan approvals at small banks climbed to 49.8% in June 2013 from 49.5% the previous month. In a year-to-year comparison, small banks approved at a higher rate last month than they did in June 2012, when the percentage was 47.5%.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"Small banks are granting SBA loans and continue to be strong players in small business lending", "Regional banks are usually more flexible and are approving a higher percentage of small business loans than big banks or credit unions, their main competition."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Small business loan approvals by alternative lenders - accounts receivable financers, merchant cash advance lenders, Community Development Financial Institutions (CDFI), microlenders, and others -increased slightly to 63.4% from the 63.3% rate in May 2013. This is due, in part, to new products introduced by alternative lenders last month.

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 continue their decline, dropping to 44.8% from 45.0% in May 2013. This represents the lowest approval rate for credit unions since the Biz2Credit Small Business Lending Index began in 2011. In a year-to-year comparison, credit union lending is down almost 20 percent in the twelve months between June 2012-13.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"The return of big banks to the small business credit market further threatens credit unions", "Lengthy processes to obtain loans at credit unions are often a large deterrent for customers, which have influenced the movement by higher credit-quality customers who are electing other lending platforms as their primary option."

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

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June 2019

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May 2019

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

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April 2019

Small Business Loan Approvals at Banks Jumped Again in April Biz2Credit Small Business Lending IndexTM

Credit Union Lending Remains at Post-Recession Low

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March 2019

Small Business Loan Approvals at Big Banks Hit New High: Biz2Credit Small Business Lending IndexTM

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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.