Although approval percentages at banks, and non-bank lenders (institutional lenders, alternative lenders and others) have risen steadily during the past 12 months, the rebound in small business lending has been far from robust.
Small business loan approval percentages at big banks ($10 + in assets) increased from 14.2% in November to 14.3% in December, and small banks’ approvals also rose from 19.9% last month to 20.1% in December, according to the latest Biz2Credit Small Business Lending Index.
Approval percentages also climbed at non-bank lenders. Institutional lenders approved 24.9% of funding requests in December, up one-tenth of a percent from 24.8% in November. Alternative lenders’ approval rates rose from 25.8% in November to 26.1% in December. Credit unions approved 20.6% in December, the same percentage as in the previous two months.
PPP, bank activity in small business lending has been slow. In 2022, however, with government lending programs ending and