Biz2Credit Small Business Lending Index™ for November Finds Loan Approval Rates Continue to Rise at Banks and at Non-Bank Lenders

Approval percentages at Big Banks, Small Banks, Institutional Lenders, Alternative Lenders rise; Credit Unions flat in November

Small business leading

Biz2Credit Small Business Leading IndexTM

Biz2Credit Small Business Lending Index™ Reports Loan Approval Rates at Banks Roses in November 2021

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) increased from 14.1% in October to 14.2% in November. 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.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“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.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also rose from October’s figure of 19.7% to 19.9% in November, according to the latest Biz2Credit Small Business Lending Index™ released today.

March 2020
38.9%
April 2020
11.8%

Monthly Comparison

April 2019
49.8%
April 2020
11.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Institutional lenders’ approval percentage rose to 24.7% in October to 24.8% in November.

March 2020
41.2%
April 2020
18.1%

Monthly Comparison

April 2019
65.3%
April 2020
18.1%

Yearly Comparison

Alternative lenders

Alternative lenders

Alternative lenders’ approval percentage rose from 25.6% of small business funding requests in October to 25.8% in November.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“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.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions approved 20.6% in November, the same percentage as in October.

March 2020
23.2%
April 2020
18.1%

Monthly Comparison

April 2019
40.1%
April 2020
18.1%

Yearly Comparison

“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.”

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

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November 2021

Biz2Credit Small Business Lending Index™ for November Finds Loan Approval Rates Continue to Rise at Banks and at Non-Bank Lenders

Approval percentages at Big Banks, Small Banks, Institutional Lenders, Alternative Lenders rise; Credit Unions flat in November

View Report
October 2021

Biz2Credit Small Business Lending Index™ for October Finds Loan Approval Rates Rose at Banks and at Non-Bank Lenders for Sixth Straight Month

View Report
September 2021

Biz2Credit Small Business Lending Index™ for September Finds Loan Approval Rates Rise at Banks and at Non-Bank Lenders for Fifth Straight Month

View Report
August 2021

Biz2Credit Small Business Lending Index™ for August Finds Loan Approval Rates Rise at Banks and at Non-Bank Lenders

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.