Credit union business lending up slightly: Report
Small business loan approval rates for credit unions retained their September approval rates, according to the Biz2Credit Small Business Lending Index™ released on Thursday.
The rate stood at 40.3 percent in September, identical to where it stood at the same time one year prior, though it dropped slightly in October 2017 to 40.2 percent. The report also notes that hiring is up, thanks primarily to growth in the small business sector.
“While there were some fluctuations in the stock market during October, the economy is still very strong,” Biz2Credit CEO Rohit Arora, said in a statement. “There is still much optimism among small business owners, and they are anticipating a strong holiday season. All these factors combine for a robust small business lending market right now.”
Arora also said that “2018 has been one of the best ever for small business lending.”
But that’s not necessarily true for credit unions. Though small banks have rebounded from 2013’s lending dip, credit unions have yet to reverse track. Overall lending approval rates have dropped by nearly 29 percent since 2011 for credit unions, according to Biz2Credit.
Banks are faring well though. Banking institutions holding market capitalizations of $10 billion or more increased loan approval rates by 20 basis points from September’s 26.7 percent metric.
Approval rates for small banks are also up, rising ten basis points from where they stood in October 2012. Arora attributed part of the uptick to smaller banks granting SBA loans at “a great pace”.
“By providing government guarantees against default and mitigating lender risk, the agency is providing incentives for banks to lend and opportunities for small business owners to secure capital,” Arora explained.
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