Small business loan approvals hit record in February
The loan approval percentage for small business credit applicants hit a record high of 27.2 percent at big banks ($10 billion+ in assets) in February, while approval rates at small banks, alternative lenders and credit unions dipped slightly, according to the Biz2Credit Small Business Lending Index™ for February 2019.
“After two months at an even 27 percent, the approvals by big banks climbed a bit at big banks in February. Overall, the cost of capital is relatively low, small businesses are looking to secure funding, and for many companies, recent financial performances have made them creditworthy borrowers,” said Biz2Credit CEO Rohit Arora, who oversees the monthly research derived from more than 1,000 small business credit applications on his company’s online lending platform.
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“The Federal Reserve has slowed its trend of incremental interest rate hikes, which is good news for borrowers,” said Arora, one of the nation’s leading experts in small business finance. “Money is flowing to small business borrowers, while the cost of capital is still reasonable – especially traditional bank loans.”