Small business loan approval rates continue to rise among all lenders

Loan approval rates for all types of lenders are increasing, slowly, according to the Biz2Credit Small Business Lending Index for December 2021.

Institutional lenders, large banks, small banks, credit unions and alternative lenders all saw modest growth in loan approvals from November 2021 to December 2021.

Alternative lenders saw the strongest growth, gaining modestly from 25.8% in November to 26.1% in December.

Alternative lenders

Why have alternative lenders led the way in loan approval?

“After the PPP, banking activity in small business loans has been slow,” said Rohit Arora, CEO of Biz2Credit. “However, with the end of government lending programs and the expected rise in interest rates, it will become more lucrative for banks to lend again.”

Big banks

The big banks (those with more than $ 10 billion in assets) achieved an approval rating of 14.3%, down from 14.2% in November.

Small banks

The approval rate for small banks rose to 20.1% in December, from 19.9% ​​in November.

Is the growth of large and small banks encouraging? Yes and no. Although loan approval rates are slowly and steadily increasing, without decreasing throughout the year, the increases are pale compared to statistics from 2 years ago.

Arora pointed out that 2 years ago big bank approvals were at 28.2% while small bank approvals were at 50.6%.

“Normalcy has not returned because the virus did not allow it,” Arora said. “We thought that with the vaccination, the Covid problem would decrease, but that did not happen. “

Institutional lenders

Institutional lenders saw their approval rates gradually increase from 24.8% in November to 24.9% in December.

Together, institutional lenders and alternative lenders approved 51% of small business loan applications.

Credit unions

Credit union loan approval rates remained the same from November to December at 20.6%.

How Biz2Credit compiles the report

Biz2Credit analyzes loan applications from small businesses that have been around for more than 2 years. To be included, small businesses also have a credit score of 680 points or higher. Biz2Credit compiles data from over 1000 companies to prepare the report. For more information, visit

Image: Depositphotos

Comments are closed.