Here is a short article from John Aidan Byrne at the New York Post. In Module 6 of VETToCEO Entrepreneurship for Transitioning Warriors we discuss sources of funding for veteran entrepreneurs. We detail all of the different ways that military veterans can fund their business idea. Many veterans think that a bank loan is the only way to secure funding. In class we find that banks are just one of many sources of capital. This article deals specifically with banks. The Biz2Credit Small Business Lending Index offers you great information on loan approval rates for the various lending entities available.
Byrne writes---Small businesses are America’s engine of job growth, employing nearly half of the US private workforce.
And now they have finally come in from the cold — thanks to surging owner optimism and bank loan approvals at record highs.
After a decade of sputtering and false starts, big banks and institutional lenders nationwide have stepped up lending in earnest.
Banks with assets of at least $10 billion approved nearly 3 in 10 small-business loan applications in May, up two-tenths of a percent from April, which marks a post-recession high, according to the latest Biz2Credit Small Business Lending Index.
Loan approvals by small banks (which are nearing the 50 percent approval mark), rose by a similar monthly percentage, the index revealed.
“We’re ready to grow our business further, expand and serve our customers,” an ecstatic Pierre Alexandre, founder of Dolce Brooklyn, a seven-person, family-owned business in Red Hook, Brooklyn, that sells Italian-style ice cream, coffees and other products, told The Post.
Alexandre, a native of France, was recently approved for a business loan by a large New York bank, with assistance by the federal Small Business Administration.
And Dolce Brooklyn has company. Institutional lenders, including pension funds and insurance companies seeking larger returns on capital, also stepped on the gas in May, approving nearly 65 percent of loans to small businesses nationwide, up one-tenth of a percent from April, according to Biz2Credit.
Lenders are approving more small business loans on the back of a stronger US economy that’s lifting many boats, analysts say.
The Small Business Optimism Index in May surged to the second-highest level in the survey’s 45-year history.