Biz2Credit Small Business Lending Index for Nov. 2013 Reports Rebound in Loan Approval Rates at Banks and Other Lenders

Lending Approval Rates at Banks Return to Pre-Government Shutdown Levels

Small business loan approvals at big banks ($10 billion+ in assets) increased to 17.4% in November 2013 from just 14.3% in October, according to the Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications on Biz2Credit.com. In a year-to-year comparison, lending approval rates at big banks have increased more than 30 percent.

Big Banks

Big Banks

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"Big banks have begun to feel the pressure to lend more money with the Dodd-Frank reform bill nearing and we should expect to see more changes accordingly in the next year".

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Additionally, small business loan approvals at small banks increased from 44.3% in October to 49.7% in November. More importantly, approval rates at banks both large and small have returned to pre-government shutdown levels in September, as the IRS and SBA are catching up on the backlog of loan applications.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"ahrefstartSBA loansahrefend are being made at a strong rate. With a robust economy and government guarantees that mitigate lender to risk, small banks are approving almost half of the loan requests they receive," Arora explained. "SBA financing is helping startups and growing companies to succeed."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Alternative lenders continue to thrive in small business lending. Approval rates by alternative lenders dropped slightly to 67.2% in November 2013, down from 67.3% the previous month.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

"The popularity of alternative lenders continues to increase as the desperation for small business owners to acquire capital becomes more urgent and because their interest rates have dropped considerably. The vast majority of alternative lenders are no longer like a 'legalized loan shark,' as was frequently the case a few years ago". "New players continue to enter the small business lending market."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Meanwhile, credit unions, which had been on the lending-rebound prior to the government shutdown, experienced a slight increase in approval rates in November. Lending approval rates at credit unions improved to 44.5%, from 43.4% in October, but they are still down nearly 10 percent in a year-to-year comparison.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

View Past Months

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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
June 2019

Small Business Loan Approvals at Big Banks Hit Record Highs, According to June 2019 Biz2Credit Small Business Lending IndexTM

Big Banks, Regional and Community Banks, and Institutional Lenders Climb, While Alternative Lending Drops and Credit Unions Sink to New Low

View Report
May 2019

Small Business Loan Approvals at Big Banks Stay at Record Post-Recession High, According to May 2019 Biz2Credit Small Business Lending IndexTM

Small Banks and Institutional Lenders Climb, Credit Union Lending Remains at Post-Recession Low, Alternative Lending Stalls Again

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.