Tuesday, April 2, 2013

Small business loan approval rates - latest trends

The latest statistics on small business lending show application approval rates rising at banks. It seems however that banks are still relying on taxpayer support to provide credit.
Biz2Credit: - "Smaller banks are making more and more loans through the SBA's Small Loan Advantage Program, which range in amounts from $50,000 to $350,000 and require little collateral," said Biz2Credit CEO Rohit Arora, who oversaw the research. "Big banks, including Sovereign and Citizens Bank, are also increasing their approvals of loans between $50,000 and $500,000. We have even seen an uptick by giants such as TD Bank and Bank of America. Small business lending is a profitable business.

Source: Biz2Credit

Credit Unions on the other hand are declining more applications than in the past as they lose ground to banks. Shadow banking ("Alternative Lenders") still has the highest loan application approval rates. These lenders include "accounts receivable financers, merchant cash advance lenders, Community Development Financial Institutions (CDFI), micro lenders, and others".

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