Big Bank Approval Rates for Small Business Loans Continue to Climb, According to September 2014 Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend

Small Business Financial Health Improves Over Last 12 Months, Creates Demand for Reasonably-Priced Loans

Small business loan approval rates at big banks reached a post-recession high for the fourth consecutive month, according to the September 2014 Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend , a monthly analysis of 1,000 loan applications on Biz2Credit.com.

Big Banks

Big Banks

Small business loan approval rates at big banks ($10 billion+ in assets) rose to 20.6% in September from 20.4% in August.

Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"Big banks really have roared back into the small business finance marketplace".

Rohit Arora

Rohit Arora, Biz2Credit CEO

Economy

"As the economy continues its slow but steady rebound, small business optimism grows, and entrepreneurs are more willing to invest in their companies."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Meanwhile, the percentage of loans granted by small banks slipped to 50.3% from 50.6% last month. In a year-to-year comparison, small business lending approval rates are up nearly 20 percent at big banks, while remaining almost stagnant at small banks.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Meanwhile, institutional lenders granted 59.5% of the funding requests they received in September, a slight increase from 59.4% in August. Lending approval rates by these institutional lenders has increased every month since Biz2Credit began monitoring this category of lenders in January 2014.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

"We are seeing more creditworthy applicants get funding from institutional investors, whose interest rates are more attractive than those of other non-bank lenders".

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

At the same time, approval rates at alternative lenders -- merchant cash advance companies, factors, and other non-bank institutions -- slipped for the eighth consecutive month to 62.6% in September, from 62.7% in August. Credit unions granted 43.4% of loan applications in September, which matched its loan approval rate last month. However, a year-to-year comparison shows that lending approval rates at credit unions are down as they continue to be an afterthought by small business loan applicants.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

Credit unions

Credit unions

Credit unions granted 43.4% of loan applications in September, which matched its loan approval rate last month. However, a year-to-year comparison shows that lending approval rates at credit unions are down as they continue to be an afterthought by small business loan applicants.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

View Past Months

Access Archives

September 2022

Biz2Credit Small Business Lending Index™ Sees Continued Rise in Business Loan Approval Rates at Small Banks for September 2022

Loan approval percentages down slightly at big banks, Institutional and Alternative lenders along with Credit Unions show growth

View Report
August 2022

Biz2Credit Small Business Lending Index™ Finds Business Loan Approval Dipped at Big Banks in August 2022

Loan approval percentages down slightly at big banks and credit unions, but small banks and non-bank lenders show continued growth

View Report
July 2022

Biz2Credit Small Business Lending Index™ Finds Business Loan Approval Rates Rose at Small Banks, Dipped at Big Banks in July 2022

Loan approval percentages down slightly at big banks and credit unions, but non-bank lenders show continued growth

View Report
June 2022

Biz2Credit Small Business Lending Index™ Reports Business Loan Approval Rates Rose Slightly in June 2022

Credit Unions slip while all other lender categories rise

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.

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