Last June saw an increase in banks approving small-business loan applications, as compared to the same time last year, according to recent research from Biz2Credit, an online loan marketplace.
The study showed that big banks – financial institutions with assets of more than $10 billion – approved 20 percent of small-business loans in June. This was an increase of three percentage points over a 12-month period.
Biz2Credit looked at 1,000 loan requests ranging from $25,000 to $3 million from firms that had been open at least two years and that have an average credit score above 680.
“The strong return of banks in small-business lending indicates three things: [an] overall improving economy, entrepreneur confidence that they will be able to borrow for expansion and repay the loans, and the increasing ease and popularity of [Small Business Administration] lending,” Rohit Arora, Biz2Credit the chief executive, said in the study.
Additionally, Biz2Credit found that banks with less than $10 billion in assets accepted more than half of the loans requested by small businesses, while approval rates by credit unions and alternative lenders remained basically unchanged.
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