Good news for entrepreneurs looking to open or grow their own small business: lending is up for the sixth month in a row, marking a continuing upward trajectory for small business loan approval rates.
That's according to Biz2Credit's Small Business Lending Index, which determined that 21.7 percent of all small business loan requests submitted to big banks this past April were approved. Not only does this surpass the all-time approval record set by the previous month's 21.6 percent, it also makes for the sixth consecutive month — and 12th out of the last 13 months — in which the rate of small business loan approvals increased.
Approvals from institutional lends also grew in April, up from 60.9 percent of loans to 61.1 percent in March. Small bank lenders exhibited a modest increase of their own, growing from 49.5 percent approvals in March to 49.6 percent in April. Although this means that more than half of small business loan requests filed with small banks continued to be denied, there's still progress being made on this front. Small Business Trends notes that this past April was the first month in nearly a year where approval rates among small bank lenders increased.
"Now that 2014 tax returns have been filed, it is evident that the economy is doing better," Rohit Arora, CEO of Biz2Credit, said in an official statement. "I expect that loan approval rates will continue to go up in the foreseeable future. Big banks are more willing to grant bigger loans to business owners that have a track record of proven success.
Are you a local Ohio-based entrepreneur looking for affordable, fixed-rate, long-term financing to expand your small business and generate new jobs? If so, consult with Growth Capital Corp. today to find the best commercial business loans suited to your needs.