NEW YORK, July 13. 2021 (GLOBE NEWSWIRE) — Small Business loan approval percentages at big banks ($10 billion and over in assets) increased slightly from 13.5% in May to 13.6% in June 2021, while small banks‘ Approvals also increased, from 18.7% in May to 18.9%according to the last Biz2Credit Small Business Loan Index™ published today.
“Banks are looking to increase their SBA 7(a) lending because they have discovered that the small business lending industry can be lucrative. Many lenders have earned millions in processing fees for processing Paycheck Protection Program (PPP) loans over the past year,” said Rohit Arora, CEO of Biz2Credit, a leading national small business finance experts. “Small banks, especially community and regional institutions, are partnering with FinTechs to digitize their small business loan application process. The pandemic has opened up opportunities for many banks.
Total nonfarm payroll employment rose 850,000 in June and the unemployment rate rose a tenth of a percentage point to 5.9%, the U.S. Bureau of Labor Statistics reported on Friday 2 July. and private education, professional and business services, retail trade and other services. Many of these jobs are created by small businesses.
Rise in non-bank lender approval percentages
VSredit syndicates went from an approval rate of 20.4% in May to 20.5% in June 2021. Iinstitutional lenders approved 23.8% funding requests in June, up two tenths of a percent from 23.6% in May. Meanwhile alternative lenders approved 24.5% funding requests in June 2021, compared to 24.3% the previous month.
“Small business owners need capital both to bounce back and to grow,” Arora said. “They have taken off their blinders and are looking for an alternative to the big banks. They can get funding from many different sources, and capital seems to be flowing again, but we’re nowhere near where it was before the pandemic. Yet we are seeing encouraging trends.
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.
Founded in 2007, Biz2Credit has arranged over $3 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. To visit www.biz2credit.com or Twitter @Biz2Credit, Facebookand LinkedIn.
Media Contact: John Mooney, (908) 720-6057, [email protected]