73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
P: (02) 8252 5319


22 Guild Street, NW8 2UP,

Contact Person: Matilda O Dunn
P: 070 8652 7276


Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
P: 030 62 91 92

The 5 Big Banks That Reject the Most Small-Business Loans

Industry information, News

BANKSWe all know it’s still tough out there to get a bank loan as a small business, particularly a startup. Turns out, it’s a lot tougher to get a loan approved at a select few of the nation’s largest banks than it is in general.

A new study of 1,000 rejected small-business loan applicationsconducted by credit marketplace Biz2Credit found the turn-down rate varies greatly between institutions.

Overall, the lending environment still looks dicey, with the most recent National Federation of Independent Business optimism survey showing more entrepreneurs with a negative outlook on obtaining credit.

Which banks rejected the most loan applications in the survey? Here’s the top five:

  1. Bank of America– 13.5%
  2. JP Morgan Chase – 11.6%
  3. Wells Fargo– 11.2%
  4. TD Bank – 2.9%
  5. PNC Bank – 2.3%

The top three here are really of most interest, as the percent of rejections drops off steeply from there.

The reject rate at BofA, JP  Morgan and Wells Fargo likely is in part a result of entrepreneurs smelling blood in the water. Loans are getting made at these big banks, so more owners are applying there.

One thing’s clear — if you’re looking for a loan for your business right now, have your financials cleaned up and looking as sweet as possible. Then, don’t be surprised if you need to apply to more than one bank to find a lender willing to help.

Finally, make sure your business can afford to take on this debt — interest rates for small-business loans aren’t cheap right now.


Contact us for all of your funding needs.

“Your Success is Our Business”