Biz2Credit Small Business Lending Index™ Reports Business Loan Approval Rates Rose Slightly in June 2022
Total nonfarm payroll employment rose by 372,000 in June, higher than many economists expected, while the unemployment rate remained at 3.6%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics released on Friday, July 8, 2022. Notable job gains occurred in professional and business services, leisure and hospitality, and health care. 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. To view the report for June 2022, click here.
“With the exception of credit unions, the approval rates for all categories of lenders inched higher last month,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business lending and fintech. “We are nowhere near pre-pandemic approval percentages, however. Still, these are positive signs.” “While the cost of capital for small businesses is rising because most small business funding comes at variable rates, borrowers need capital for growth,” added Arora. “Fortunately, they can find it at a variety of lending sources.”
“With unemployment so low, small business owners are still struggling to find workers. This, naturally, is driving up the cost of labor as demand outweighs supply,” Arora says. “Rising labor costs, combined with 8.6% inflation in May 2022, continues to put a financial crunch on small companies.”
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.