NEW YORK, July 13, 2021 (GLOBE NEWSWIRE) – Small business loan approval percentages at big banks (+ $ 10 billion in assets) edged up from 13.5% in May to 13.6% in June 2021, while small banks” approvals also fell from 18.7% in May to 18.9%, according to the last Biz2Credit Small Business Loan Index™ released today.
“Banks are looking to increase their SBA 7 (a) loans because they have discovered that the small business lending industry can be lucrative. Many lenders have earned millions of dollars in processing fees for processing Paycheck Protection Program (PPP) loans over the past year, ”said Rohit Arora, CEO of Biz2Credit, one of the leading national experts in small business finance. “Small banks, especially community and regional institutions, are partnering with FinTechs to digitize their small business loan application process. The pandemic has opened up opportunities for many banks. “
Total non-farm payroll employment increased by 850,000 in June and the unemployment rate rose by a tenth of a percentage point to 5.9%, the US Bureau of Labor Statistics reported on Friday 2 July. and private education, professional and business services, retail and other services. Many of these jobs are created by small businesses.
Increase in approval percentages of non-bank lenders
VSrepetition unions went from a 20.4% approval rate in May to 20.5% in June 2021. Iinstitutional lenders approved 23.8% funding requests in June, up two-tenths of a percent from 23.6% in May. Meanwhile alternative lenders approved 24.5% funding requests in June 2021, compared to 24.3% the previous month.
“Small business owners need capital to both rebound and grow,” said Arora. “They have taken off their blinders and are looking for an alternative to the big banks. They can get funding from many different sources, and the capital seems to be pouring in again, but we are not far from before the pandemic. Yet we are seeing some encouraging trends. “
Biz2Credit analyzed loan applications from businesses that have been in business for more than two years with credit scores above 680. The results are based on primary data submitted by over 1,000 small business owners who have applied for financing on the Biz2Credit platform.
Founded in 2007, Biz2Credit has arranged over $ 3 billion in small business financing. The company extends its cutting-edge technology into customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @ Biz2Credit, Facebook and LinkedIn.
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