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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
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Big BanksImage
Banks with assets greater than $10 billion
Big banks ($10b+ in assets) drop from 15.1% in August to 14.9% in September, according to the latest Biz2Credit Small Business Lending Index™ released today.

Total nonfarm payroll employment increased by 263,000 in September, and the unemployment rate edged down to 3.5 percent, according to the Jobs Report released by the U.S. Bureau of Labor Statistics that released on Friday, October 7, 2022. Notable job gains occurred in leisure and hospitality and in health care. Many of these jobs are created by small businesses.

Monthly Comparison
-0.2%
14.9%
September 2022
15.1%
August 2022
Yearly Comparison
+0.9%
14.9%
September 2022
14.0%
September 2021
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“Small business loan approval percentages are relatively stagnant,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading experts in small business finance. “With ever rising increases in interest rates, now is a tough time for small businesses in search of capital for growth.”

Rohit Arora
Biz2Credit CEO
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Small Banks Image
Banks with assets less than $10 billion
Small banks from 21.4% in August to 21.5% in September, according to the latest Biz2Credit Small Business Lending Index™ released today.
Monthly Comparison
+0.1%
21.5%
September 2022
21.4%
August 2022
Yearly Comparison
+2.0%
21.5%
September 2022
19.5%
September 2021
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“Small businesses are still facing many challenges related to COVID restrictions, a tight labor market, and inflation. It is important that they have access to capital in order to survive,” Arora added. “This is particularly important for the smallest of businesses, especially companies that are women-owned and minority-owned.”

Rohit Arora
Biz2Credit CEO
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Institutional Lenders Image
Investment groups or large investment portfolios such as insurance funds, mutual funds and hedge funds
Institutional lenders approved 26% of loan requests in September, increasing from 25.9% in August.
Monthly Comparison
+0.1%
26.0%
September 2022
25.9%
August 2022
Yearly Comparison
+1.5%
26.0%
September 2022
24.5%
September 2021
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Alternative Lenders Image
Independent lending organizations not licensed as banks or credit unions
Alternative lenders’ approval rates rose from 27.3% in August to 27.5% in September.
Monthly Comparison
+0.2%
27.5%
September 2022
27.3%
August 2022
Yearly Comparison
+2.1%
27.5%
September 2022
25.4%
September 2021
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Credit Unions Image
Arora says the lending industry is watching closely what the SBA does, specifically whether the agency will approve fintech companies to process SBA loans.
Credit unions showed their first increase in approval ratings for 2022, going from 20.3% in August to 20.4% in September.
Monthly Comparison
+0.1%
20.4%
September 2022
20.3%
August 2022
Yearly Comparison
-0.2%
20.4%
September 2022
20.6%
September 2021

The Report

About Biz2Credit Small Business Lending Index™

The Biz2Credit Small Business Lending Index™ 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 Index™ 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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