Small business loan approval rates at major banks continued their upward trend, from 14.1% in October to 14.2% in November.
Biz2Credit Small Business Lending Index Report – November 2021
The data comes from the last Biz2Credit Small Business Loan Index.
Increase in loans to small banks
Besides the increase in small business loans from the big bank, the approvals of small banks for the same period have also increased. According to the report, the number of loans approved by small bank lenders increased from 19.7% in October to 19.9% ââin November.
Higher approval rates among non-bank lenders
A similar trend can be found among institutional lenders, where approval rates fell from 24.7% in October to 24.8% in November.
Alternative lenders have also approved a higher volume of small business financing applications, with approval rates rising from 25.6% in October to 25.8% in November.
The only category of lenders that has not experienced loan growth is credit unions, where October approval rates of 20.6% remained the same as in November.
The data are “encouraging”
Referring to the latest figures as “encouraging,” Rohit Arora, CEO of Biz2Credit, one of the country’s leading FinTech and small business lending experts, said:
âAll categories of lenders except credit unions, which remained stable, saw their loan approval percentages increase this month.
âBank approval percentages are increasing, but more slowly than we would have hoped now. It’s encouraging, but all categories of lenders are well below pre-COVID approval levels. “
Unemployment has fallen over the same period
The November 2021 Biz2Credit Small Business Loan Index report also examines data from the employment report released by the Bureau of Labor Statistics. The report shows that unemployment fell from 0.4% to 4.2%.
The most notable job gains were in professional and business service industries, as well as in transportation, warehousing, construction and manufacturing.
Although many industries saw unemployment decline, the retail sector saw its employment levels plummet during the month.
According to Biz2Credit, many jobs are created by small businesses.