Oct. 9, 2012 – An Oct. 4 Atlanta Federal Reserve blog post notes that Biz2Credit data supports Atlanta Fed survey findings showing small business lending is more prevalent at smaller institutions than larger ones.
Ellyn Terry, senior economic research analyst at the Atlanta Fed, pointed out on the blog that a semiannual survey on small business lending conducted in April found that “firms applying for credit at large national banks had notably less success than firms that applied to small banks.” Terry noted that this disparity has also been documented by Biz2Credit, a NAFCU Services Preferred Partner that connects business borrowers to financial institutions based on profile suitability.
“Much like we saw in the Small Business Survey, Biz2Credit reports that small firms have had consistently less success in obtaining credit at large banks,” she wrote.
For its data, Biz2Credit surveys credit unions, big banks, small banks and alternative lenders. Every month, the company releases new data for the Biz2Credit Small Business Lending Index, which measures loan approval rates for financial institutions.
The fact that the Biz2Credit data reinforced the Atlanta Fed’s findings “encourages us that our April observation was a good one,” Terry said. “But confirmation isn't explanation—what accounts for the different experiences small businesses have in securing credit from small banks versus big banks? And so, we dig deeper.”
The Atlanta Fed is currently seeking participants in the Southeast region for its next semiannual small business survey. Interested parties are encouraged to send an email by Oct. 22 to SmallBusinessResearch@atl.frb.org.