Small-business loan approval rates by both large and small banks jumped in November, rebounding from an October lull in which the government shutdown caused a backlog in applications.
Large banks approved 17.4% of small-business loans in November, up from 14.3% in October and 13.2% in November 2012, according to a survey released Wednesday by the online loan intermediary Biz2Credit. Small banks, considered to be those with less than $10 billion of assets, approved 49.7% of loans, up from 44.3% in October and 49.2% a year ago, the survey said.
The strong November loan-approval rates followed a dip in October, when the government shutdown largely prevented the Small Business Administration and Internal Revenue Service from approving loan applications or providing necessary documentation.
Aside from the one-month dip in October, bank small-business loan approval rates have mostly held steady after hitting post-recession highs earlier in the year. Large bank approval rates rose consistently in the early months of the year and peaked at 17.6% in August; small bank rates hit a high of 50.9% in April.
Meanwhile, alternative lenders continue to make inroads. The approval rate of alternative lenders ticked stood at 67.2% in November, down just a hair from a record 67.3% in October and up from 64.3% a year ago.
Credit unions approved 44.5% of small-business loans in November, up from 43.4% in October.