The Biz2Credit Small Business Lending Index reveals an increase in the approval rates of small business loans by banks of all sizes in the U.S. in April 2019. The approval percentages at small banks increased to 49.8% while approval rates at big banks reached a record high of 27.6%.
The findings also reveal that approval rates among institutional lenders dropped from 65.4% to 65.3% and among alternative lenders from 57.3% to 57.2%. Approval rates at credit unions remained at a record low of 40.1%. Biz2Credit COE Rohit Arora explained that alternative lenders suffered a lot of losses, and while there was a decline in approval rates among institutional lenders they continue to approve almost two-thirds of loan applications. He also said that the index indicates that small business optimism is high and the American economy is still strong
The index is based on analysis of loan requests ranging from $25,000 to $3 million and the results are based on the data submitted by small business owners who applied for loans on Biz2Credit’s online lending platform.