Small Biz Loan Approval Rates at Banks Continue to Improve in June 2016, According to Biz2Credit Small Business Lending Index

Brexit Does Little to Hurt the U.S. Small Business Lending Marketplace

Loan approval rates at big banks ($10 billion+ in assets) and small banks increased slightly in June 2016, according to the most recent Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend, the monthly analysis of more than 1,000 small business loan applications on Biz2Credit.com. Meanwhile, institutional lenders, alternative lenders and credit unions experienced a small dip in loan approval rates last month.

Big Banks

Big Banks

Big banks Small business loan approval rates at big banks ($10 billion+ in assets) improved to a new all-time Index high of 23.3%, up one-tenth of a percent in June.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"Big banks continue their commitment to small business lending. Oil prices are still very low, and people are spending money, which helps the prospects of small business owners looking to grow."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"We have yet to see any economic fallout from Britain's decision to leave the European Union. So far, the U.S. markets seem to have rebounded well from the initial shock of the so-called Brexit."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Meanwhile, lending approval rates increased slightly at small banks up to 48.8% in June, an increase one-tenth of a percent from May 2016.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"There is confidence in the U.S. economy and it helps small business lending". "We are seeing small companies seeking loans to buy commercial real estate and upgrade equipment. A lot of businesses have good cash flow. These are all good signs that encourage small banks -- and other financial institutions -- to lend."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Institutional lenders

Institutional lenders

Institutional lenders' loan approval rates dipped slightly to 62.7% in June, down one-tenth of a percent from 62.8% in May.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

"Despite this slight drop, look for institutional lenders to grow. With the uncertainty in Europe right now, I expect to see more money coming into the small business lending marketplace from outside the U.S.". "Domestic investors are looking inward, and the U.S. economy is a safe haven right now. This is good news for small businesses seeking capital for growth. Industries including travel and restaurants are doing quite well at this point. Some food businesses have grown 10 percent in a year. These are solid growth figures."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Alternative lenders still are approving more than three-out-of-five loan requests on average. In June, lending approval rates inched upward by one-tenth of a percent to 60.1%.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

"The slow and steady economic recovery has been beneficial to small business owners in many ways". "Small business owners with solid credit ratings are able to find good rates and terms and don't have to borrow at high interest rates. However, for some borrowers, alternative lenders are an important source of capital."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions continued their slow decline in loan approval rates, reaching an all-time Index low of 41.6% in June, down one-tenth of a percent from May. Loan approval percentage rates have declined at credit unions every month for more than a year.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"I don't foresee a turnaround by credit unions coming any time soon".

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

Access Archives

Aug 2019

Small Business Loan Approvals at Banks Continue to Reach New Heights, According to August 2019 Biz2Credit Small Business Lending Index™

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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

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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

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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.