Small Business Loan Approval Rates Hit Record High
The record highs reflect a strong U.S. economy and job growth. The Bureau of Labor Statistics reports the unemployment rate is currently at 3.8 percent. And wage growth is also experiencing the highest rate in two years according to the latest Paychex/IHS Markit Small Business Employment Watch.
For small business owners and entrepreneurs looking to expand or start their fits venture, this is a good time. Biz2Credit CEO Rohit Arora addressed this very point in the report. He said, “The U.S. economy is strong right now.” This has benefitted banks, making May another strong month."
Arora added, “The unemployment rate hit an 18-year low, and average hourly pay rose 2.7 percent from a year prior. Notably, the Labor Department reported employment in construction continued on an upward trend in May with more than 25,000 new jobs created. There were also large increases in manufacturing, transportation and warehousing jobs.”
The index is derived from the monthly analysis of more than 1,000 credit applications from small businesses on Biz2Credit.com.