Biz2Credit Small Business Lending Index™ Reports Business Loan Approval Rates Up Slightly in May 2022
Total nonfarm payroll employment rose by 390,000 in May, and the unemployment rate remained at 3.6%, according to the Jobs Report released by the U.S. Bureau of Labor Statistics released on Friday, June 3. Notable job gains occurred in leisure and hospitality, in professional and business services, and in transportation and warehousing. Many of these jobs are created by small businesses. However, employment in retail trade declined.
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 May 2022, click here.
"Small businesses are still trying to figure out their funding needs and must consider rising interest rates. With inflation, entrepreneurs need funding for growth,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts in small business lending and fintech.
"The cost of capital for small business borrowers will rise, since most small business funding comes at variable rates,” added Arora. “The continued incremental increase in loan approval percentages is encouraging. For the past year, it really has been a case of ‘slow and steady wins the race’." Arora says the lending industry is watching closely what the SBA does, specifically whether the agency will approve fintech companies to process SBA loans.
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.