Small Business Loan Approvals Stagnant in 2022
At the close of 2022, Biz2Credit took a look back at its Lending Index reports for the year.
During 2022, for small business owners seeking loans, there was little to no growth in lending approval percentages.
Here’s how Biz2Credit figures the index. The lending approval percentages are calculated based on loan requests from more than 1,000 people whose small business has been operating more than 2 years, and who have credit scores higher than 680. The stats are derived from small business owners who apply via the Biz2Credit platform.
Here are the statistics on lending approval percentages from the end of 2022:
- Alternative Lenders, 27.6%
- Institutional Lenders, 25.9%
- Small Banks, 21.2%
- Credit Unions, 20.2%
- Large Banks, 14.5%
Biz2Credit issues a Lending Index Report monthly. Biz2Credit CEO Rahit Arora said that it’s a tough time for small businesses to get loans for big banks. Big banks are defined as banks with more than $ 10 billion in assets.
“As we look at 2022, big bank small business loan approval percentages rose, then steadily declined where the figure in December was the same as it was last January,” Arora said.
“Meanwhile, small bank approval rates inched up ever so slightly but are still far below pre-pandemic levels.”
“Institutional Investors and Alternative Lenders were slightly up in 2022,” Arora added. “Credit unions in December recorded their second lowest total ever since Biz2Credit began reported loan approval percentages in 2011. Overall, it was a tough year for small businesses looking to secure financing.”
Image: Envato Elements
This article, “Small Business Loan Approvals Stagnant in 2022” was first published on Small Business Trends