Biz2Credit Small Business Lending Index™ Reports Business Loan Approval Rates Up Slightly in June 2022
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NEW YORK, July 12 2022 (GLOBE NEWSWIRE) — Small Business Loan Approval Percentages at big banks ($10M+ in assets) grew from 15.3% in May to 15.4% in June, while small banks‘ Approvals also increased, from 20.9% in May to 21.1% in June, according to the latest Biz2Credit Small Business Loan Index™ published today. Loans approved by banks have increased in each month of 2022.
Among non-bank lenders, approval percentages improved slightly, although loan approvals from credit unions fell:
- Iinstitutional lenders approved 25.6% loan applications in June, up one tenth of a percent from 25.5% of loan applications in May.
- Alternative lenders approval rates fell from 26.9% in May to 27.1% in June.
- credit unions slipped slightly from 20.6% in May to 20.5% in June.
“With the exception of credit unions, approval rates for all categories of lenders increased slightly last month,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading lending experts. to small businesses and fintech. “We are however far from the pre-pandemic approval percentages. Still, these are positive signs.
“As the cost of capital for small businesses increases because most small business financing is variable rate, borrowers need capital for growth,” Arora added. “Fortunately, they can find it from various loan sources.”
Total non-farm payroll employment rose by 372,000 in June, higher than many economists expected, while the jobless rate remained at 3.6%, according to the published jobs report. by the U.S. Bureau of Labor Statistics released Friday, July 8, 2022. occurred in professional and business services, recreation and hospitality, and health care. Many of these jobs are created by small businesses.
“With such a low unemployment rate, small business owners are still struggling to find workers. This, naturally, drives up the cost of labor as demand outstrips supply,” says Arora. “Rising labor costs, combined with inflation of 8.6% in May 2022, continue to put financial pressure on small businesses.”
Biz2Credit analyzed loan applications from businesses that had been in business for more than two years with credit scores above 680. The results are based on primary data submitted by more than 1,000 small business owners who applied for financing on the Biz2Credit platform. To view the report of June 2022, Click here.
Founded in 2007, Biz2Credit has arranged over $7 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.
Contact: John Mooney, (908) 720-6057, [email protected]