New Survey Finds That Small Business Lending Remains Stable Despite Turbulence in Big Banks

Staff Report

Friday, March 17th, 2023

Lendio, the nation's leading small business financial solutions provider, released the findings of a new polling of the top 21 lenders and funders in its marketplace, in the wake of the FDIC's recent takeover of two large banks, to better understand the current state of lending and access to funds for U.S. small-and-medium-sized businesses (SMBs).

The poll found:

100 percent of surveyed lenders and funders report no change in their lending capacity, indicating stability in the state of small-and-medium-sized business lending;
All respondents reported no change to their liquidity, further showing stability for the industry;
However, approximately 38% of respondents said they are evaluating potential changes to their underwriting criteria, suggesting some heightened aversion to future risk.

"Small businesses are a bedrock in our communities and for our economy, and maintaining access to capital and funding options is crucial to their growth and continued impact," said Brock Blake, co-founder and CEO of Lendio. "In the face of recent commotion and changes at larger banks, it's important to see this data around the resilience of SMB funding and offer reassurance to SMBs across America. Lendio remains committed to being an integral part of and connector in a world where small businesses survive—and thrive."

According to data from the White House and the U.S. Small Business Administration (SBA), small businesses in the U.S. employ 61 million people, nearly 50 percent of all private-sector workers. Domestically, gross revenue from small businesses totals $13.3 trillion.

"In speaking with our funding partners over the past several days, we are pleased to see the stability and confidence there for SMBs," said Mark Cottle, Lendio Executive Vice President. "In 2021 and 2022, the U.S. saw more small business funding applications than ever before, and we're eager to support these businesses as they grow, scale and seek funding partners to help them realize their dreams."