What percent of small business loans are approved?

Question

Zippia Team · Accepted Answer

General small business loans have a 57% approval rate, while SBA loans, in particular, have a 52% approval rate. However, this number can be affected by the applicant's location and the type of bank used, as well as race or gender.

For example, rural small businesses have 51% of applications approved, compared to only 38% of urban businesses.

This can be explained by the fact that urban businesses favor large banks, with approval ratings as low as 13.8%. With the approval rating for small banks being nearly 1.5x higher than that.

Additionally, Black Americans and other minorities also struggle with approval rates, as only 47% of loans requested by Black individuals are approved.