N.Y. Small Businesses Shunned the Most by Big Banks
While it may not be much of a surprise to credit unions that some banks are not eager to approve funding for small businesses these days, the rate of rejections might cause some alarm.
New York topped the list of states where small businesses’ requests for credit were turned down the most, according to Biz2Credit, a New York company that connects small and medium-sized businesses with lenders.
“The businesses we looked at are survivors that made it through the recession” Arora said. “When they approach [the] smaller banks, credit unions and alternative lenders, they are getting money. The big banks are sitting on their assets.”
After New York, small businesses’ funding requests were rejected the most by big banks in California, Florida, Texas, New Jersey, Illinois, Georgia, Maryland, Colorado and Pennsylvania, according to Biz2Credit. Within these states, six credit unions each rejected one small business’ request during the 2010 and 2011 period.