Biz2Credit Small Business Lending Index™ Reports Loan Approval Percentages Dropped at Banks and Credit Unions in November
Total nonfarm payroll employment increased by 263,000 in November, and the unemployment rate was unchanged at 3.7 percent, according to the Jobs Report released by the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, health care, and government. Employment declined in retail trade and in transportation and warehousing. Many of these positions are created by small businesses, which are responsible for the lion’s share of new jobs in the private sector economy.
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 November 2022, click here.
"With seemingly ever rising interest rates, small businesses are taking a wait-and-see approach to borrowing. All eyes will be on what the Federal Reserve announces at its next meeting on Dec. 14. Most experts anticipate another 25bps increase in interest rates,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “While rates continue to rise, the economy has not yet reaped the benefits of tighter monetary policy as a means to curb inflation.”
“Inflation and high cost of capital remain among the top concerns for small business owners,” Arora said. “There is a lot of uncertainty for small businesses in the current economy. While we seem to have recovered well from the worst depths of the COVID pandemic, cost pressures -- including rising wages, increasing costs of raw materials, and cost of capital -- are putting a lot of pressure on small companies at this time.”
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.