As Economy Recovers, Loan Approval Rates Increase For Small Businesses
14 Jul 2021
Small business loan approval percentages at big banks ($10 billion+ in assets) climbed slightly from 13.5% in May to 13.6% and small banks’ approvals rose from 18.7% in May to 18.9%, in June 2021, according to the latest Biz2Credit Small Business Lending Index.
The pandemic opened up opportunities for many banks. Many smaller banks that had not fully automated their small business loan application procedure are now heading in that direction. Banks that participated in the government’s Paycheck Protection Program (PPP) lending to help small businesses survive the pandemic often gained these small businesses as customers, and now that the PPP is over, they may again be able to help them by providing traditional term loans and SBA loans.
Numerous lenders earned millions in processing fees for processing PPP loans in the past year. Smaller banks, especially community and regional institutions are partnering with FinTechs to make their small business loan application process digital. The pandemic actually opened up opportunities for banks.