Biz2Credit Small Business Lending Index™ Finds June 2021 Loan Approval Rates Increased for All Categories of Lenders

Small business leading

Biz2Credit Small Business Leading IndexTM

Small Business Loan Approval Rates at Big Banks Rose in june 2021

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) climbed slightly from 13.5% in May to 13.6% in June 2021, according to the latest Biz2Credit Small Business Lending Index™ released today. 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.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“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.

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also rose from 18.7% in May to 18.9% in June.

March 2020
38.9%
April 2020
11.8%

Monthly Comparison

April 2019
49.8%
April 2020
11.8%

Yearly Comparison

“Smaller banks, especially community and regional institutions are partnering with FinTechs to make their small business loan application process digital. The pandemic opened up opportunities for many banks.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Institutional lenders

Institutional lenders

Institutional lenders approved 23.8% of funding requests in June, up two-tenths of a percent from 23.6% in May.

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 approved 24.5% of funding applications in June 2021, up from 24.3% the month prior.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“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.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions edged up from a 20.4% approval rate in May, to 20.5% in June 2021.

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

May-2021

Now That PPP Lending Has Ended, Biz2Credit Small Business Lending Index™ Finds May 2021 Loan Approval Rates Increase for Banks and Non-Bank Lenders

View Report
April-2021

Biz2Credit Small Business Lending Index™ Finds April 2021 Non-PPP Loan Approval Rates Move Little for All Types of Lenders

View Report
March 2021

Biz2Credit Small Business Lending Index™ Finds March 2021 Non-PPP Loan Approval Rates Trending Upwards for All Categories of Lenders

PPP Lending Still Dominates Small Business Loan-Making in March 2021

View Report
February 2021

Biz2Credit Small Business Lending Index™ Finds Loan Approval Rates in February 2021 Changed Little from January, But Dropped Dramatically from February 2020

As Small Business Businesses Apply for PPP Funding, Approval Percentages for Traditional Loans Plummet

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.