The Biz2Credit Small Business Lending Index™ Discovers Loan Approval Rates for All Types of Lenders Increased in June

According to the latest Biz2Credit Small Business Lending IndexTM, small business loan approval percentages at big banks ($10 billion+ in assets) increased slightly from 13.5% in May to 13.6% in June 2021, while approvals at small banks increased from 18.7% in May to 18.9%.

The total nonfarm payroll employment increased by 850,000 in June, while the unemployment rate increased by one-tenth of a percentage point to 5.9%, according to data released by the U.S. Bureau of Labor Statistics on Friday, July 2. Leisure and hospitality, public and private education, professional and business services, retail trade, and other services all saw significant job growth. Small businesses create many of these jobs.

Non-Bank Lenders’ Approval Percentages Rise
Credit union approval rates increased from 20.4% in May to 20.5% in June 2021. In June, institutional lenders approved 23.8% of funding requests, up two-tenths of a percentage point from 23.6% in May. Meanwhile, alternative lenders approved 24.5% of funding requests in June 2021, up from 24.3% the previous month.

Biz2Credit examined loan requests from companies that have been in business for more than two years and have credit scores above 680. The findings are based on primary data submitted by over 1,000 small business owners who used Biz2Credit's platform to apply for funding.

About Biz2Credit
Biz2Credit, founded in 2007, has arranged more than $3 billion in small business financing. The company's industry-leading technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers is expanding.