Small Business Lending Heats Up in June
Summer’s record temperatures seem to be heating up small business lending markets. Following increased loan volume to small business in May, the Biz2Credit Small Business Lending Index, a monthly analysis of 1,000 loan applications by IFA member Biz2credit.com, found that approvals in June by big banks jumped a half percentage point to 11.1% from 10.6% in May 2012. The figure was well above the disappointing 8.9% approval rate a year ago, in June 2011.
Additionally, loan approvals by small banks jumped to 47.5% in June 2012, up two percentage points from 45.5% in May 2012 and up a full five percentage points higher than the 42.5.% approval rate in May 2011, according to Biz2Credit.
“We’re not out of the woods yet, but the previously frozen credit markets for small business seem to be thawing somewhat,” said Beth Solomon, IFA’s Vice President of Strategic Initiatives & Industry Relations. “But until the housing sector picks up steam, traditional sources of capital such as home equity loans will feel downward pressure, so the IFA will continue to offer tactics, tools, and solutions to our members.”
Nearly 100 franchise leaders attended a Private Equity & Franchise Finance Bonus Session at the International Franchise Expo in New York in June. IFA will present a webinar on using technology to access capital July 24th. Please contact Josh Merin at email@example.com for more information.