Small Business Loan Approvals at Big Banks Stay at Record Post-Recession High, According to May 2019 Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend
Small Banks and Institutional Lenders Climb, Credit Union Lending Remains at Post-Recession Low, Alternative Lending Stalls Again
Big Banks
Approval rates for small business loan applications remained at a record high of 27.5% at big banks ($10 billion+ in assets) in May, while the approval percentage climbed yet again at small banks, which reached 49.9%, according to the Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend released today.
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"Bank approvals of small business loans are as high as they have ever been in the 21st century's post-recession era", who oversees the monthly research derived from more than 1,000 small business credit applications on his company's online lending platform. "The economy is strong, which bodes well for small businesses searching for capital."

Rohit Arora, Biz2Credit CEO
Small Banks
Small bank approvals of small business loan applications climbed one-tenth of a percent from 49.8% in April to 49.9% in May. Meanwhile, in the Jobs Report released on June 7, the Labor Department reported that employment increased by 75,000 in May, while the unemployment rate remained at 3.6 percent. The U.S. Bureau of Labor Statistics also reported job gains in professional and business services and in health care. The NFIB Small Business Optimism Index increased in April, the last month reported by the NFIB, to a historically strong level. Profits are still trending upwards, and expectations for sales, business conditions, and credit conditions all improved, according to the NFIB Small Business Optimism Index."
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"SBA lending is a big part of small business loan-making by small banks."

Rohit Arora, Biz2Credit CEO
Institutional lenders
Institutional lenders climbed two-tenths of a percent to a 65.5% approval rate, up from 65.3% in April.
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"Institutional lenders are an excellent source for small business financing, and are continuing to play in increasing role in the small business lending marketplace."

Rohit Arora, Biz2Credit CEO
Alternative lenders
Loan approval rates among alternative lenders dropped one-tenth of a percent to 57.1% in May, down a notch from 57.2% in April.
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"Because the banks are lending aggressively and can offer better rates and terms, alternative lenders have declined slowly but steadily this year". "The banks receive applications from higher quality borrowers, and they offer lower interest rates because default rates are so low at the moment. This is, in part, due to improvements in data analytics among lenders that offer digital online applications."

Rohit Arora, Biz2Credit CEO
Credit unions
Credit unions again stayed at a record low 40.1% of loan applications in April.
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"Credit unions are looking for ways to expand, including partnering with the SBA on small business loans."

Rohit Arora, Biz2Credit CEO
View Past Months
Access Archives
October 2019 |
Big Banks’ Small Business Loan Approvals Hit New Record in October, According to Biz2Credit Small Business Lending Index™ |
Strength seen in lending by big banks, small banks, and institutional investors last month |
View Report |
September 2019 |
Small Business Loan Approvals at Big Banks Hit New Record in September, According to Biz2Credit Small Business Lending Index™ |
View Report |
Aug 2019 |
Small Business Loan Approvals at Banks Continue to Reach New Heights, According to August 2019 Biz2Credit Small Business Lending Index™ |
View Report |
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 |
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.