Small business loan approval percentages at big banks inched upwards from 15.3% in May to 15.4% in June, while small banks’ approvals also rose from 20.9% in May to 21.1% in June, according to the latest Biz2Credit Small Business Lending Index.
Small business loan approval percentages at big banks (more than $10 billion in assets) rose slightly to 13.5% in March from 13.3% in February 2021, according to the Biz2Credit Small Business Lending Index.
Daniel J. Rose from the Small Business Financial Exchange provides an in-depth look at small business credit in 2020 and outlines how originations, deliniquinces and utilization shifted throughout such a challenging year.
BankProv made two additions to its small business lending team in 2020, hiring Joel Gianninoto as vice president of commercial lending and Ryan Fox as assistant vice president of commercial lending.
With COVID-19 cases surging and a new wave of restrictions looming, challenges persist for small business owners as they continue to weather the pandemic, according to data from the Q4 Wells Fargo/Gallup Small Business Index.
In September, the PayNet Small Business Lending Index increased 12 points (9.1%) to 143.9 and is now 2.9% above its year-ago level. On Main Street, the NFIB Uncertainty Index increased to its second-highest reading in the series’ 46-year history.
According to a FDIC survey, despite holding only 13% of banking industry assets, the data showed that community banks hold 42% of small business loans.
Low interest rates and high levels of regulation are preventing the UK’s traditional banks from lending to small businesses. Andre Hakkak and Thomas Otte suggest this situation provides opportunities for alternative lenders to step in.
Analysts from the Cleveland Fed noted that since the Great Recession bank lending to small businesses has fallen significantly, with bankers blaming small business owners and regulators and small business owners, in turn, saying the problem rests with bankers and regulators.
After stepping backward in Q1/13, small business investment jumped forward in the last two months, according to the Thomson Reuters/PayNet Small Business Lending Index.