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March / 2022

Biz2Credit Small Business Lending Index™ for March 2022 Finds Approval Rates Rise Once Again

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Big BanksImage
Banks with assets greater than $10 billion
Small business loan approval percentages at big banks ($10m + in assets) rose from 14.7% in February to 14.9% in March.

Meanwhile, total nonfarm payroll employment rose by 431,000 in March, and the unemployment rate declined to 3.6%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics on Friday, April 1. Notable job gains continued in leisure and hospitality, professional and business services, retail trade, and manufacturing. 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 March 2022.

Monthly Comparison
+0.2%
14.9%
March 2022
14.7%
Feb 2022
Yearly Comparison
+1.4%
14.9%
March 2022
13.5%
March 2021
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“When the COVID-19 pandemic began in March 2020, loan approval percentages were almost double what they are today for banks and non-bank lenders,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business lending and FinTech. “Two years later, small business lending still has not fully rebounded. This is disappointing news for companies looking to grow their businesses.”

Rohit Arora
Biz2Credit CEO
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Small Banks Image
Banks with assets less than $10 billion
Small banks’ approvals also increased from 20.5% in February to 20.6%, according to the latest Biz2Credit Small Business Lending Index™ released today.
Monthly Comparison
+0.1%
20.6%
March 2022
20.5%
Feb 2022
Yearly Comparison
+2.3%
20.6%
March 2022
18.3%
March 2021
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Institutional Lenders Image
Investment groups or large investment portfolios such as insurance funds, mutual funds and hedge funds
Institutional lenders approved 25.3% of funding requests in March, up one-tenth of a percent from 25.2% in February.
Monthly Comparison
+0.1%
25.3%
March 2022
25.2%
Feb 2022
Yearly Comparison
+2.0%
25.3%
March 2022
23.3%
March 2021
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Alternative Lenders Image
Independent lending organizations not licensed as banks or credit unions
Alternative lenders’ approval rates rose from 26.5% in February to 26.6% in March.
Monthly Comparison
+0.1%
26.6%
March 2022
26.5%
Feb 2022
Yearly Comparison
+2.7%
26.6%
March 2022
23.9%
March 2021
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“Because of supply chain issues, small businesses are sometimes having to borrow money when inventory is available and buy more than they typically would need in order to hedge against shortages,” added Arora. “I don’t see this changing until supply chain issues ease. Big corporations can weather the storm. It is harder for SMBs.”

Rohit Arora
Biz2Credit CEO
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Credit Unions Image
Non-profit money cooperatives whose members borrow from pooled deposits
Credit unions fell one-tenth of a percent to 20.6% in March after being stagnant for two months.
Monthly Comparison
-0.1%
20.6%
March 2022
20.7%
Feb 2022
Yearly Comparison
+0.2%
20.6%
March 2022
20.4%
March 2021

The Report

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.