Small Business Loan Approvals Near Pre-Recession Levels

Small Business Loan Approvals Near Pre-Recession LevelsYear-over-year, big bank approval rates for small business loans have increased by more than 62 percent, from the 10.9 percent approval rate in August 2012.
August marks the second straight record month for loan approvals by big banks, according to a monthly analysis of 1,000 loan applications on Biz2Credit.com.
Small business loan approvals at big banks ($10 billion-plus in assets) jumped to an all-time Biz2Credit index high of 17.6 percent in August 2013 from 17.4 percent in July.
“Five years after the Great Recession, the small business lending landscape is better than at any time since 2008,” said Biz2Credit CEO, Rohit Arora who oversaw the research.
But the surest bet for a small-biz loan approval is still with smaller banks.
Small banks granted more loan requests than they rejected in August.  Approval rates rose to 50.7 percent in August from 49.4 percent in July.
Credit union lending also improved slightly to 45.3 percent in August, up from 45.1 percent last month.  It is the second consecutive month of increases for credit unions after more than a year of declines.
Alternative lender approvals of small business loans dropped to 63.1 percent in August from 63.2 percent in July.
“Banks, both large and small, are becoming more aggressive in small business lending since it has proven to be a profitable part of their portfolios,” Arora said. “Additionally, banks typically attract higher quality borrowers than credit unions and alternative lenders, so they are becoming more apt to grant loan requests.
Small Business Loan Approvals Near Pre-Recession Levels

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