NEW YORK, October 12, 2021 (GLOBE NEWSWIRE) – Small business loan approval percentages at big banks (over $ 10 billion in assets) fell from 13.9% in August 2021 to 14% in September. During this time, small banks‘approvals also increased in September to reach 19.5% by 19.3% the previous month, according to the latest Biz2Credit Index of Small Business Loansâ¢ released today.
âBusiness leaders are investing in their business and banks are increasingly willing to lend. These are good signs for the small business economy, âsaid Rohit Arora, CEO of Biz2Credit, one of the country’s leading experts on FinTech and small business lending. “Every category of lenders, including bank and non-bank lenders, has seen their loan approval percentages increase each month for the past five months.”
The total number of nonfarm jobs increased by 194,000 in September and the unemployment rate fell 0.4 percentage points to 4.8%, the Bureau of Labor Statistics reported on Friday, October 8. retail, as well as transportation and warehousing. Many of these jobs are created by small businesses.
Increase in approval percentages of non-bank lenders
Iinstitutional lenders approved passed to 24.5% in September, up from 24.3% of funding requests in August and 2.3 percentage points from a year ago. During this time, alternative lenders approved rose from 25.2% in August to 25.4% of funding requests in September 2021. Last year, the September percentage for alternative lenders was 23.1%. VSrepetition unions approved 20.6% in September, up a tenth of a percent from August, but down from 21% in September 2020.
âNon-bank lenders are a viable source of funding for businesses that need cash quickly,â Arora added.
Biz2Credit analyzed loan applications from businesses that have been in business for more than two years with credit scores above 680. The results are based on primary data submitted by over 1,000 small business owners who have applied for financing on the Biz2Credit platform.
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, (908) 720-6057, [email protected]