Small Business Loan Approval Rates Rebound At Big Banks, According To November 2014 Biz2credit Small Business Lending Index – Houston Chronicle

Their commitment to investment into digitization is paying off as more borrowers seek to do business via smart phones and tablets. Big banks have increased their loan approval rates by 20 percent over the last year. Meanwhile, for the first time in nearly a year, small banks are denying more than half of their loan requests. The percentage of loans granted by small banks slipped for the sixth consecutive month to 49.8% from 50.2% in October. “Many of the smaller banks are starting to feel the squeeze of failing to adapt to their competition integrating technology,” said Arora, one of the nation’s leading experts in small business finance. “More credit-worthy borrowers are turning to big banks and institutional lenders because of their increased willingness to lend and the simplicity of getting financing from these lenders. Meanwhile, institutional lenders granted 59.9% of the funding requests they received in November, a slight increase from 59.7% in October. Approval rates by institutional lenders have increased each month since Biz2Credit began monitoring this category of lenders in January 2014.
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Business Loans facilitated by Biz2Credit and, backed by the Small Business Administration (SBA) Biz2Credit has been helping small business owners and entrepreneurs secure financing through SBA loan programs for years. We specialize in helping business owners successfully apply for the right type of funding to accomplish their short-term and long-term goals. What is an SBA Loan? The U.S. Small Business Administration, or SBA, is a federal agency that provides loan guaranty programs and other services to support and encourage the growth and development of small businesses across the United States. It was founded on July 30, 1953, and has delivered over 20 million loans, guarantees, counseling sessions, contracts, and other forms of assistance to small businesses across the country. SBA loans are offered to borrowers through multiple financial institutions. Loan Guarantee Program: The SBA guarantees a portion of the loan, which makes it easier for lenders to provide loans to small businesses that may fall in a higher risk category. These businesses may not be in a strong enough financial position to obtain traditional bank small business loans , and therefore rely on the SBA guarantee. Program Features: SBA programs offer lower down payments and longer term financing, which can help businesses just starting out, those looking to expand, or better manage their cash flow. This allows small businesses to focus on operational expenses rather than debt repayment. Loan Purposes: Loans from the SBA are provided for various purposes. These include business start-ups or acquisitions, working capital, owner-occupied real estate, franchise financing, inventory, debt refinancing, equipment, and even improvements and renovations.
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