Small banks approved 45.1% of loan applications by small firms in September, up from 43.8% in August and 43.5% at the start of the year, the New York lending broker Biz2Credit said.
Credit unions, Community Development Financial Institutions and microlenders also increased small-business lending last month, approving 61.5% of funding requests, up from 58% in August.
Meanwhile, loan approval rates at large banks dropped to 9.2% from 9.35% in August and 12.8% in January.
Biz2Credit chief executive Rohit Arora said large banks continue to struggle with growing uncertainty in global capital markets. By contrast, smaller banks tend to focus a greater share of lending on local communities and are less exposed to international m