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Main Street Monday — Community Banks, Credit Unions, CDFIs Shine in Small Biz Loan Customer Satisfaction

April 17, 2017

By Bob Coleman
Editor, Main Street Monday

Main Street Monday — Community Banks, Credit Unions, CDFIs Shine in Small Biz Loan Customer Satisfaction

And online lenders ranked lowest in customer satisfaction in the just released Federal Reserve Bank Small Business Credit Survey.

Online lenders are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, Can Capital and Paypal Working Capital

High interest rates and unfavorable repayment terms top Main Street’s dissatisfaction with online lenders.

Difficult application logistics and long waits for the credit decision top dissatisfaction reasons for banks.

Here are more interesting stats for Main Street lenders.

Demand for Financing

Loan requests for Small Businesses with Revenues more than $1 Million

Over $1 Million — 18%
$250,000 to $1 Million — 31%
$100,000 to $250,000 — 25%
$25,000 to $100,000 — 22%
Less than $25,000 — 3%

Loan requests for Small Businesses with Revenues less than $1 Million

Over $1 Million — 3%
$250,000 to $1 Million — 12%
$100,000 to $250,000 — 16%
$25,000 to $100,000 — 42%
Less than $25,000 — 28%

64% of applicants sought funds for expansion

Access the report here.

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