Big Bank Approval Rates for Small Business Loans Continue to Rise, According to July 2014 Biz2Credit Small Business Lending Index

Biz2Credit Biz2Credit Small Business Lending Index Big Bank Approval Rates for Small Business Loans Continue to Rise July 2014 According to the Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications on Biz2Credit.com 15.5% Big bank approvals In a year to year comparison, big bank approval rates have increased by more than 15% in July from 17.40 approval rates in July 2013. 59.3% Institutional Lenders, Institutional lenders granted 59.3% of the funding requests they received in July, a slight increase from 59.2% in June. "Institutional firms have roared into the small business segment and created fierce competition for other so-called alternative lenders, This competition is lowering the price of alternative lending products, which is good news for borrowers - particularly those whose credit scores are not high enough to qualify for loans from traditional banks." Biz2Credit CEO Rohit Arora, 20.0% 20.1% Loan approvals at Big banks Small business loan approval rates at big banks ($10 billion+ in assets) rose to 20.1% in July from 20.0% in June June, 2014 July, 2014 "Big banks are becoming increasingly aggressive in small business lending and are adopting technology that make them more efficient players." - Biz2Credit CEO Rohit Arora, 51.4% Loan approvals at 50.9% Small banks Approval rates at small banks slipped to 50.9% from 51.4% last month. June, 2014 July, 2014 "Because of their renewed focus on small business loans, larger banks are taking away higher quality customers from smaller competitors." - Biz2Credit CEO Rohit Arora, Small business loan 63.2% 62.9% approvals by Alternative lenders Approval rates at alternative lenders slipped for the sixth consecutive month to 62.9% in July, from 63.2% in June. June, 2014 July, 2014 "The financial health of small business owners has improved over last 12 months thus creating a demand for more reasonably priced, longer term products which institutional players - insurance companies, credit funds, family funds, and other yield-hungry, non-bank financial institutions - can provide," Biz2Credit CEO Rohit Arora, 43.7% Credit union approvals of 43.5% small business loans Credit unions granted 43.5% of loan applications in June, down from 43.7% last month. June, 2014 July, 2014 "However, there is still room for improvement, The SBA still needs more to streamline its Small Loan Advantage program. In spite of verbal support by Maria Contreras-Sweet, the new SBA Administrator, we have still not seen much process improvement in this program with regards to acceptance of eSignatures and other technological advancements." Biz2Credit CEO Rohit Arora, About the Biz2Credit Small Business Lending Index Biz2Credit analyzed loan requests ranging from $25,000 to $3 million from companies in business more than two years with an average credit score above 680. Unlike other surveys, the results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit's online lending platform, which connects business borrowers with more than 1,100 lenders nationwide.