The small business loan application approval rate at big banks rebounded from just 8.9% in April to 11.5% in May, according to Biz2Credit. Small business loan approval rates also improved for smaller banks, institutional lenders, alternative lenders and credit unions.
Banks with $10 billion or more in assets approved 8.9% of small business loans in April, falling from a mark of 15.4% in March and an all-time high of 28.3% in February, according to Biz2Credit. Smaller banks approved 11.8% of small business loans in April, down from 38.9% in March and 50.3% in February.
Biz2Credit’s funding affiliate was approved as a lender for the SBA Paycheck Protection Program established under the CARES Act. This makes Biz2Credit a fintech approved by the SBA as a non-bank lender under the PPP.
Biz2Credit will offer its Biz2X Accelerate SBA platform free of charge to banks and credit unions with assets under $10 billion that are offering Paycheck Protection Program loans.
Biz2Credit launched Biz2X Accelerate SBA, a platform aimed to help banks and other financial institutions respond to loan requests from small businesses seeking to take advantage of the Paycheck Protection Program (PPP) of the CARES Act stimulus package.
The number of women-owned businesses that applied for funding in 2018 increased by 13%, although their funding amounts went down, according to an annual study of women-owned companies by Biz2Credit.
Although the U.S. Small Business Administration was closed for most of January because of the government shutdown, the percentage of SBA loan approvals dropped by just one percent in January at regional and community banks, according to Biz2Credit Small Business Lending Index.
With the U.S. Small Business Administration closed for the past two-and-a-half weeks because of the partial government shutdown, SBA loan approvals dropped in December 2018 at banks and other institutions, according to the Biz2Credit Small Business Lending Index.
Small business loan approval rates for big banks reached another record high in November 2018, according to the latest Biz2Credit Small Business Lending Index.
Biz2Credit ranked No. 335 on Deloitte’s Technology Fast 500, a list of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.