C-Suite Wednesday – Small Business Lending Remains Steady Says Biz2Credit
August 24, 2022
Delaney Sexton
Contributing Editor
C-Suite Wednesday – Small Business Lending Remains Steady Says Biz2Credit
“Small banks, which process a lot of SBA loans, remain a good source of capital. For companies that need money more quickly, nonbank lenders remain a good option,” says Biz2Credit’s CEO Rohit Arora. “Approvals at big banks slipped just a bit after months of steady increases. This is likely due to concerns about a possible recession after the Federal Reserve rose interest rates by 75 basis points in an effort to control inflation.”
Here are the facts:
• Lending at big banks had a minor dip of 0.1% from June to July. Compared to July 2021, lending has increased 1.5% at big banks. Of all the lending institutions listed, big banks have the lowest approval rate, reaching 15.3% in July 2022.
• Approvals at small banks saw a minor increase of 0.1% from June to July. When comparing July 2022 to July 2021, there has been a 2.1% increase in lending according to Biz2Credit. The approval rate in July was 21.2%.
• Lending approvals at institutional lenders have consistently increased. There was an almost 2% increase in approvals from July 2021 to July 2022, making their approval rate 25.8%.
• Alternative lenders have seen the largest rise in yearly approval rates. In July 2021, their approval rate was 24.7%, and in July 2022, that percentage increased to 27.2%.
• Loan approval rates at credit unions have remained consistent on a month-by-month and year-by-year basis remaining around 20.4%-20.5%.
Source:
Biz2Credit July Index