Updated: Sep 3
Now that the PPP is over, small business owners still face challenges, including rising costs of fuel and wages, along with a tight labor market. Continued access to capital will be vital in supporting the entrepreneurial rebound.
According to Forbes, Non-bank lenders have seen a steady increase in their loan approvals; credit unions edged up from a 20.4% approval rate in May, to 20.5% in June 2021. Institutional lenders approved 23.8% of funding requests in June, up two-tenths of a percent from 23.6% in May. Meanwhile alternative lenders approved 24.5% of funding applications in June 2021, up from 24.3% the month prior.
The big banks remain comparatively stingy in their small business loan-making. This is opening up opportunities for smaller banks and other alternative lenders to gain market share providing small business owners with much needed options.