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
Small business loan approval rates at big banks ($10 billion+ in assets) rose to 20.6% in September from 20.4% in August.
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"Big banks really have roared back into the small business finance marketplace".
Rohit Arora, Biz2Credit CEO
"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, Biz2Credit CEO
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.
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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.
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"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, Biz2Credit CEO
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.
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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.
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View Past Months
Access Archives
| February 2020 |
Small Business Loan Approval Rates at Big Banks Remain at Record High in February 2020: Biz2Credit Small Business Lending Index™ |
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Small Banks and Alternative Lenders drop, and Credit Unions remain at all-time low |
| View Report |
| January 2020 |
Small Business Loan Approval Rates at Big Banks Reach New Record in January 2020: Biz2Credit Small Business Lending Index™ |
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Small banks drop slightly, while Credit Unions hit new bottom |
| View Report |
| December 2019 |
Banks’ Small Business Loan Approval Rates Hit Record High in December 2019: Biz2Credit Small Business Lending Index™ |
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Improvement seen at big banks, small banks, and institutional investors |
| View Report |
| November 2019 |
Big Banks’ Small Business Loan Approvals Continue to Rise, Reach New Record High in November, According to Biz2Credit Small Business Lending Index™ |
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Improvement seen in lending by big banks, small banks, and institutional investors in November |
| 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.