According to the latest Biz2Credit Small Business Lending Index, small businesses saw an uptick in big bank lending during the month of September. The Biz2Credit report “analyzes loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680.”
With the Federal Reserve keeping interest rates low, banks have continued to increase their lending, rising seven of the last eight months. "Loan approval rates at institutional lenders also improved to an all-time high of 63 percent. It was the third consecutive month that institutional lenders saw increases in their approval rates.“
The news wasn’t so good for small banks, alternative lenders, and credit unions which saw a decrease in loan approval rates, falling to 48%.
Overall this is great news for small businesses meeting the above requirements. Lending has been a terrible event the past few years and any increase is a positive. Expect these increases to continue as many banks are not meeting internal institutional lending goals.