NEW YORK, Oct. 11, 2022 (GLOBE NEWSWIRE) -- Small business loan approval percentages at small banks continued to rise from 21.4% in August to 21.5% in September, while approvals at big banks ($10m + in assets) dropped from 15.1% in August to 14.9% in September, according to the latest Biz2Credit Small Business Lending Index™ released today.
Approval percentages also improved slightly among three categories of non-bank lenders.
- Institutional lenders approved 26% of loan requests in September, increasing from 25.9% in August. Approvals in this lending category have climbed consistently in 2022.
- Alternative lenders’ approval rates rose from 27.3% in August to 27.5% in September.
- Credit unions showed their first increase in approval ratings for 2022, going from 20.3% in August to 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 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.”
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.
“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.”
Biz2Credit analyzed loan requests from companies in business 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 funding on Biz2Credit's platform. To view the report for September 2022, click here.
About Biz2Credit
Founded in 2007, Biz2Credit has arranged more than $7 billion in small business financing. The company is expanding its industry-leading technology in custom 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, john@overthemoonpr.com
