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NEW YORK, March 15, 2022 (GLOBE NEWSWIRE) — Small Business Loan Approval Percentages at big banks ($10+ in assets) went from 14.5% in January to 14.7% in January, and small banks‘ Approvals also increased, from 20.3% in January to 20.5% in February, according to the latest Biz2Credit Small Business Loan Index™ published today.
Among several categories of non-bank lenders, approval percentages also climbed. Iinstitutional lenders approved 25.2% funding requests in January, up one tenth of a percent from 25.1% in January. Alternative lenders approval rates fell from 26.3% in January to 26.5% in February. credit unions remained stagnant at 20.7% in February.
“Two years ago, bank approval percentages were almost double what they are today for all categories of lenders,” said Biz2Credit CEO Rohit Arora, one of the main national experts in small business lending and FinTech. “For example, in February 2020, large banks approved 28.3% of loan applications, while smaller banks approved more than half (50.3%) of loan applications.”
“The percentages of non-bank lenders in 2020 were even higher: institutional lenders approved nearly two-thirds (66.5%) of small business loan applications, at the time a record high. Meanwhile, alternative lenders granted 55.9% and credit unions approved 39.6%,” added Arora, who has overseen Biz2Credit’s index for more than a decade. “We have a long way to go before we achieve these goals again – if we ever get there.”
Total nonfarm payroll employment rose by 678,000 in February and the unemployment rate fell to 3.8%, according to the jobs report released by the U.S. Bureau of Labor Statistics on Friday 4 March. Employment growth continued in leisure and hospitality, professional and business services. , health care and construction. Many of these jobs are created by small 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 February 2022 report, Click here.
About Biz2Credit
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.
Media contact: John Mooney, PR Over The Moon, (908) 720-6057, [email protected]
Source: Biz2Credit
