Biz2Credit Small Business Lending Index™ Finds June 2021 Loan Approval Rates Increased for All Categories of Lenders
Total Nonfarm Payroll employment rose by 850,000 in June, and the unemployment rate rose by one-tenth of a percentage point to 5.9%, the U.S. Bureau of Labor Statistics reported on Friday, July 2. Notable job gains occurred in leisure and hospitality, public and private education, professional and business services, retail trade, and other services. 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.
“Banks are looking to increase their SBA 7(a) loan-making, as they found out that the small business lending sector can be lucrative. Many lenders earned millions in processing fees for processing Paycheck Protection Program (PPP) loans in the past year,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business finance.
“Small business owners need capital both to rebound and to grow,” Arora said. “They have taken off their blinders and look for alternative to the big name banks. They can get funding from many different sources, and capital seems to be flowing again, but we are not anywhere near we were before the pandemic. Still, we are seeing encouraging trends.”
About Biz2Credit Small Business Lending Index™
The Biz2Credit Small Business Lending Index™ 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 Index™ 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.