Biz2Credit Small Business Lending Index™ for September Finds Loan Approval Rates Rise at Banks and at Non-Bank Lenders for Fifth Straight Month

Small business leading

Biz2Credit Small Business Leading IndexTM

Biz2Credit Small Business Lending Index™ Reports Loan Approval Rates at Banks Roses in September 2021

Big Banks

Big Banks

Small business loan approval percentages at big banks ($10 billion+ in assets) increased from 13.9% in August 2021 to 14% in September. Total nonfarm payroll employment rose by 194,000 in September, and the unemployment rate declined by 0.4 percentage points to 4.8 percent, the Bureau of Labor Statistics reported on Friday, Oct. 8. Notable job gains occurred in leisure and hospitality, professional and business services, retail trade, and in transportation and warehousing. Many of these jobs are created by small businesses. 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.

March 2020
15.4%
April 2020
8.9%

Monthly Comparison

April 2019
27.5%
April 2020
8.9%

Yearly Comparison

“Business owners are investing in their companies, and banks are increasingly willing to lend. These are good signs for the small business economy,” said Rohit Arora, CEO of Biz2Credit, one of the nation’s leading experts in FinTech and small business lending.

Rohit Arora

Rohit Arora, Biz2Credit CEO

Small Banks

Small Banks

Small banks’ approvals also rose in September to 19.5% from 19.3% in the month before, according to the latest Biz2Credit Small Business Lending Index™ released today.

March 2020
38.9%
April 2020
11.8%

Monthly Comparison

April 2019
49.8%
April 2020
11.8%

Yearly Comparison

Institutional lenders

Institutional lenders

Institutional lenders approved grew to 24.5% in September, up from 24.3% of funding requests in August and up 2.3 percentage points from one year ago.

March 2020
41.2%
April 2020
18.1%

Monthly Comparison

April 2019
65.3%
April 2020
18.1%

Yearly Comparison

Alternative lenders

Alternative lenders

Alternative lenders approved rose from 25.2% in August to 25.4% of funding applications in September 2021. Last year, the September percentage for alternative lenders was 23.1%.

March 2020
30.4%
April 2020
15.2%

Monthly Comparison

April 2019
57.2%
April 2020
15.2%

Yearly Comparison

“Non-bank lenders are a viable source of funding for companies that need money quickly,” Arora added.

Rohit Arora

Rohit Arora, Biz2Credit CEO

Credit unions

Credit unions

Credit unions approved 20.6% in September, up one tenth of a percent from August, but down from 21% in September 2020.

March 2020
23.2%
April 2020
18.1%

Monthly Comparison

April 2019
40.1%
April 2020
18.1%

Yearly Comparison

View Past Months

Access Archives

August 2021

Biz2Credit Small Business Lending Index™ for August Finds Loan Approval Rates Rise at Banks and at Non-Bank Lenders

View Report
July 2021

Biz2Credit Small Business Lending Index™ Finds Loan Approval Rates Rose at Banks and at Institutional and Alternative Lenders in July 2021

View Report
June-2021

Biz2Credit Small Business Lending Index™ Finds June 2021 Loan Approval Rates Increased for All Categories of Lenders

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May-2021

Now That PPP Lending Has Ended, Biz2Credit Small Business Lending Index™ Finds May 2021 Loan Approval Rates Increase for Banks and Non-Bank Lenders

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.