Biz2Credit Small Business Lending Index™ for November Finds Loan Approval Rates Continue to Rise at Banks and at Non-Bank Lenders
Nonfarm employment rose by 210,000 in November, and the unemployment rate fell by 0.4 percentage point to 4.2%, according to the Jobs Report issued by the Bureau of Labor Statistics on Friday, Dec. 3, 2021. Notable job gains occurred in professional and business services, transportation and warehousing, construction, and manufacturing, although employment in retail trade declined over the month.
Many of the 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.
“Every category of lender, with the exception of credit unions, which remained flat, saw their loan approval percentages rise this month,” said Rohit Arora, CEO of Biz2Credit, one of the nation’s leading experts in FinTech and small business lending. “Approval percentages at banks are rising, but more slowly than we would have hoped by now. This is encouraging, but all categories of lenders are far below pre-COVID approval levels.”
“We continue to see small improvements in approval rates at Institutional Lenders and Alternative Lenders,” said Arora. “This is something of a bright spot currently.”
“Small business lending at credit unions seems to be stalled,” Arora said. “Other types of non-bank lenders are more likely to approve funding requests than credit unions at this point.”
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.