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Small Business Loan Approvals are hitting Post-Recession Highs

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.

https://smallbiztrends.com/2017/08/biz2credit-lending-index-july-2017.html

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