Small and medium-sized business lending has remained stable despite the turmoil in several large banks nationwide, according to a survey by Lehi-based Lendio, a small-business financial solutions provider. In the wake of the Federal Deposit Insurance Corp.’s recent takeover of two large banks, Lendio polled the top 21 lenders and funders in its marketplace to better understand the current state of lending and access to funds for U.S. small- and medium-sized businesses (SMB).
The poll found that 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 of Lendio’s respondents reported no change to their liquidity, further showing stability for the industry. However, approximately 38 percent 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.”
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.”