NEW YORK, July 13, 2021 (GLOBE NEWSWIRE) – Small Business loan approval interest in big banks ($ 10 billion in assets) rose slightly from 13.5% in May to 13.6% in June 2021, and small banksapprovals also rose from 18.7% in May to 18.9%according to the latest Biz2Credit Small Business Lending Index™ released today.
“Banks are looking to increase lending to SBA 7 (a) as they have found that the small business lending sector can be profitable. Many lenders made millions in processing fees for Payroll Protection Program (PPP) loans last year, ”said Biz2Credit CEO Rohit Arora, one of the nation’s leading small business finance experts. “Small banks, especially local and regional institutions, are partnering with FinTechs to digitalize the small business loan application process. The pandemic has opened up opportunities for many banks. “
Total non-farm employment rose 850,000 in June and the unemployment rate rose one tenth of a percentage point to 5.9%, the US Bureau of Labor Statistics reported Friday, July 2. A noticeable increase in jobs has occurred in the field of leisure and hospitality. and private education, professional and business services, retail and other services. Many of these jobs are created by small businesses.
Increase in the interest rate of approval of non-bank lenders
CRedit unions increased from 20.4% in May to 20.5% in June 2021 Iinstitutional lenders approved 23.8% funding applications in June, an increase of two tenths of a percent from 23.6% in May. Meanwhile alternative lenders approved 24.5% funding applications in June 2021, up from 24.3% a month earlier.
“Small business owners need capital for both recovery and growth,” Arora said. “They have removed their blinders and are looking for an alternative to large banks. They may receive funding from a wide variety of sources, and it seems that capital is flowing again, but we are nowhere near as close as we were before the pandemic. Nevertheless, we are seeing encouraging trends. “
Biz2Credit analyzed loan applications from companies with more than two years of credit rating above 680. The results are based on raw data provided by more than 1,000 small business owners who applied for funding on the Biz2Credit platform.
Founded in 2007, Biz2Credit has organized over $ 3 billion in small business financing. The company is expanding its cutting edge technology to create customized digital platform solutions for banks and other financial institutions, investors and service providers. Visit www.biz2credit.com or Twitter @ Biz2Credit, Facebook, as well as LinkedIn…
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