The Paycheck Protection Program gave out billions in loans to small businesses suffering from the effects of the COVID-19 pandemic, but other business loans are becoming scarcer
Less than one in four loans were approved in July, compared to pre-pandemic levels of around 50 percent
Banks are less willing to take on the risk of lending to businesses, while companies have also held off on investment plans
Thirty-five percent of small business owners in recent CreditCards.com survey say they used savings or personal credit cards to help cover expenses during COVID-19 pandemic
Seventy percent use some form of assistance, such as PPP or business savings account
Most small businesses are hoping for increase in sales to stay in business or meet growth targets
Federal Reserve Board modifies Main Street Lending Program to improve credit access for nonprofits such as educational services, hospitals, and social service organizations
New and expanded loan options available
Loan conditions generally mirror those of for-profit organizations
The approval rate for small business loans from big banks increased from 11.5% in May to 13.5% in June, according to the Biz2Credit Small Business Lending Index.
The approval rate was higher among smaller banks, increasing from 16.9 percent in May to 18.4 percent in June.
Approval rates at institutional lenders and credit unions rose slightly.
