Bank and Institutional Lender Loan Approval Rates Climbed in September 2017, According to Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend

Study reveals increases in approval percentages for big banks, small banks and institutional lenders; alternative lenders and credit unions stall

ahrefstartBusiness loanahrefend approval rates at big banks ($10 billion-plus in assets) hit another post-recession high in September 2017, according to the latest Biz2Credit Small Business Lending IndexsuperscriptstartTMsuperscruptend , a monthly analysis of more than 1,000 small business loan applications on Biz2Credit.com. Loan approval percentages of institutional investors also set a new record high.

Big Banks

Big Banks

ahrefstartSmall business loanahrefend approval rates at big banks improved two-tenths of a percent to 24.8% in September, up from 24.6% in August and setting another new high for the Biz2Credit Index.
Aug 2018
26.5%
Sep 2018
26.7%

Monthly Comparison

Aug 2018
26.5%
Sep 2018
26.7%

Yearly Comparison

"If you are seeking small business loans, you have a better chance now at securing funding than at any other time since the Great Recession"

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Meanwhile, approval percentages at small banks also rose one-tenth of a percent last month to 49.1%, a slight uptick from August's 49.0% figure.

Jul 2018
49.7%
Aug 2018
49.8%

Monthly Comparison

Aug 2017
49%
Aug 2018
49.8%

Yearly Comparison

"Big banks are approving nearly a quarter of the applications they receive from small businesses. Small banks are doing a lot of SBA loans, and institutional lenders are on the rise. The small business credit market is robust at the moment for anyone who has a decent credit history."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Institutional lenders

Institutional lenders

Institutional lenders' loan approval rates improved by one-tenth of a percent in September to 63.9%, a new high for the category in the Biz2Credit Small Business Lending Index.

Jul 2018
64.8%
Aug 2018
64.9%

Monthly Comparison

Jul 2018
63.9%
Aug 2018
64.9%

Yearly Comparison

"Now that President Trump's tax proposal has been unveiled, business owners are hoping that the cuts will further stimulate economic growth," added Arora, one of the country's leading experts in small business finance. "The stock markets are strong, jobs are being created, and oil prices have dropped further. All of these factors instill confidence in business owners who are contemplating start-up or expansion financing."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Alternative lenders

Alternative lenders

Loan approval rates among alternative lenders continue to drop; approval rates dipped one-tenth of a percent in September to 57.0%. Approval percentages for alternative lenders have been on a slow, continuous monthly decline for more than a year.

Jul 2018
56.5%
Aug 2018
56.6%

Monthly Comparison

Aug 2017
57.1%
Aug 2018
56.6%

Yearly Comparison

"Alternative lenders still play a valuable role in small business finance because they provide funding to businesses with poor credit scores or no credit history at all,". "They make quick decisions and accept higher levels of risk. However, they charge higher rates than other types of lenders."

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Loan approval rates at credit unions remained stagnant at 40.3%, which remains the low mark for this category of funders on Biz2Credit's index.

Jul 2018
40.3%
Aug 2018
40.2%

Monthly Comparison

Aug 2017
40.3%
Aug 2018
40.2%

Yearly Comparison

"Credit unions still lag behind other types of lenders in their technological upgrades, and they are still handcuffed by the credit union member business-lending (MBL) cap, unfortunately," Arora explained. "It's an ongoing issue for them."

Rohit Arora

Rohit Arora, Biz2Credit CEO

View Past Months

Access Archives

June 2019

Small Business Loan Approvals at Big Banks Hit Record Highs, According to June 2019 Biz2Credit Small Business Lending IndexTM

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

View Report
May 2019

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

Small Banks and Institutional Lenders Climb, Credit Union Lending Remains at Post-Recession Low, Alternative Lending Stalls Again

View Report
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

View Report
March 2019

Small Business Loan Approvals at Big Banks Hit New High: Biz2Credit Small Business Lending IndexTM

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

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.