The American economy is strong and according to the latest Biz2Credit Small Business Lending Index, “a monthly analysis of loan approval rates, big banks approved 24.5 percent of funding requests, a new post-recession high in July.”  In addition to big bank approval rates, smaller local banks are also approving loans at higher rates, granting almost half (48.9% to be exact) of all small business loan requests.

Institutional lenders are also following suit approving over 60% of small business loan requests.  While there are many factors that come into play, the big assumption is due to the strong dollar and a sense of opportunity in the small business lending space.

The only lending sector to see a drop was approvals from alternative lenders falling “three-tenths of a percent to 57.2 percent.”  This is big news as companies like Paypal are looking to ramp up their alternate lending sector.  Still, the rates are in excess of 50% and still a mainstay for small business owners needing more risky credit lending options.  Credit Unions remained the same at just over 40% approval rates.

For the report, Biz2Credit analyzed loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680.

Small Business Loan Approvals Hit New Post-Recession High, Biz2Credit Reports

Premium Ad