In 2022, for small business owners seeking commercial loans there was little to no growth in lending approval percentages. Alternative lenders led the way with a 28% approval rate followed by institutional lenders at 25%. Large banks, defined as banks with more than $10 billion in assets approved the smallest percentage at 15%.
Here are the statistics on lending approval percentages from the end of 2022. The lending approval percentages were calculated based on a sampling of commercial loan requests from more than 1,000 applicants whose small business has been operating more than 2 years. (Source: Biz2Credit)
Alternative Lenders, 27.6%
Institutional Lenders, 25.9%
Small Banks, 21.2%
Credit Unions, 20.2%
Large Banks, 14.5%
In summary, small business owners seeking to secure financing in 2022 had a tough time doing so.
