Loan approval percentages down slightly at major banks, institutional and alternative lenders and credit unions show growth
NEW YORK, Oct. 11, 2022 (GLOBE NEWSWIRE) — Small Business Loan Approval Percentages at small banks continued to rise 21.4% in August to 21.5% in September, while approvals to big banks ($10M+ in assets) grew from 15.1% in August to 14.9% in September, according to the latest Biz2Credit Small Business Loan Index™ published today.
Approval percentages also improved slightly among three categories of non-bank lenders.
Iinstitutional lenders approved 26% loan applications in September, compared to 25.9% in August. Approvals in this lending category have steadily increased in 2022.
Alternative lenders approval ratings fell from 27.3% in August to 27.5% in September.
credit unions showed their first increase in approval ratings for 2022, from 20.3% in august at 20.4% in September.
“Small business loan approval percentages are relatively stagnant,” said Rohit Arora, CEO of Biz2Credit and one of the nation’s leading small business finance experts. “With interest rates steadily rising, these are tough times for small businesses looking for capital for growth.”
Total non-farm payroll employment rose by 263,000 in September and the unemployment rate edged down to 3.5%, according to the US Bureau of Labor Statistics’ jobs report, released on Friday, October 7, 2022. Notable job gains occurred in leisure and hospitality and healthcare. Many of these jobs are created by small businesses.
“Small businesses still face many challenges related to COVID restrictions, a tight labor market and inflation. It is important that they have access to capital to survive,” added Arora. “This is especially important for smaller businesses, especially women-owned and minority-owned businesses.”
Biz2Credit analyzed loan applications from businesses that had been in business for 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 financing on the Biz2Credit platform. To view the report of September 2022, Click here.
Founded in 2007, Biz2Credit has arranged over $7 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @Biz2Credit, Facebook and LinkedIn.
Contact: John Mooney, (908) 720-6057, [email protected]