Biz2Credit Small Business Lending Index for September 2013 Reports Slight Dip in Bank Approval Rates for Small Business Loans, Impact of Government Shutdown Concerns

Loan Approvals Were on Par for Another Record High, Until Anxiety Over the Government Shutdown Intensified at the End of the Month

NEW YORK, NY, October 8, 2013 -- Small business loan approvals at big banks ($10 billion+ in assets) dipped slightly to 17.5% in September from the all-time index high of 17.6% in August 2013, according to the ahrefstartBiz2Credit Small Business Lending Indexahrefend, a monthly analysis of 1,000 loan applications on Biz2Credit.com. Additionally, small banks loan approval rates dropped to 50.1% from 50.7% in August.

Big Banks

Big Banks

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"Banks were aggressive in small business lending during the first half of September and were on a path to another record month of approvals. However, as the anxiety over the government shutdown began to rise, lending slowed, which accounts for the stagnation in the Index". "We expect the government shutdown to impact the figures negatively in the coming month, and the debt ceiling debate could cripple small business lending even further."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"A major chunk of small business lending under the SBA and conventional loan programs require verification of transcripts by the IRS. This has halted, and there will be a backlog of SBA loans once the impasse has settled," continued Arora, one of the nation's top experts in small business finance. "Cutting off small business borrowing takes the oxygen away from small businesses, which create the lion's share of private sector jobs in America. "This bad news comes at a fragile time in the economic recovery following the Great Recession."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

Alternative lenders

Alternative lenders

Alternative lender approvals of small business loans rose one-tenth of a percent to 63.2% from 63.1% in August.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

Credit unions

Credit unions

Meanwhile, credit union lending improved slightly to 45.4% from 45.3% last month. It is the third consecutive month of increases for credit unions after more than a year of steady declines. Alternative lender approvals of small business loans rose one-tenth of a percent to 63.2% from 63.1% in August.

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

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May 2019

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

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April 2019

Small Business Loan Approvals at Banks Jumped Again in April Biz2Credit Small Business Lending IndexTM

Credit Union Lending Remains at Post-Recession Low

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March 2019

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Credit Union Lending Percentages Drop to Historic, Post-Recession Low

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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.