Bank Loans for Small Businesses Begin to Dry Up
(21 December 2020 – United States) Small businesses in the United States (US) have been severely impacted by public closure and lockdown measures incurred this year.
Given such unprecedented times traditional banks have stepped-in and supported small businesses with finance. However, recent data reported by the Biz2Credit reveals that traditional banks loans are now drying up.
Biz2Credit are an online credit resource offering finance to small businesses. According to data from their lending platform which analyses more than 1,000 loan requests each month, the number of finance request approved by traditional banks have significantly fallen over recent months.
Large banks with assets over US$10 billion have reduced their small business loan approval by 14.8 percent since November last year, and smaller banks by 32.2 percent.
“Even though many companies are operating at a loss right now and need capital, they are discouraged from applying for funding because of the likelihood or rejection as approval rates drop and because there is so much economic uncertainty caused by the coronavirus” commented Biz2Credit CEO, Rohit Arora.
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