July numbers reported an increase in small business loan approval rates at big banks (i.e. banks holding more than $10B in assets). Approval rates of 13.5% in June rose to 13.8% in July, marking the first increase since January of 2020 when big bank loan approval rates soared at 28.3%.
This increase was mirrored in loan approval rates at small banks as well, which rose from 18.4% in June to 18.6% in July. This was a continued bump from 16.9% in May, but still remains well below the 50.3% mark that small business loan approval rates at small banks hit back in February of this year.
It is important to note that these loans were separate from the widely distributed government PPP loans that many businesses successfully applied for and received earlier in the year.
The widespread increase in bank loan approvals throughout July was accompanied by a continued decrease in the unemployment rate, bringing it to 10.2%. Unemployment had peaked in April at 14.7% and has continued to fall month-over-month since. July alone added 1.8 million nonfarm jobs as economic activity that had been restricted due to COVID resumed, especially in the areas of leisure, hospitality, retail, professional services, and health care.
These indicators may be a sign of an economic rebound on the horizon.
The Economic Census is the U.S. Government's official five-year measure of American business and the economy. It is conducted by the U.S. Census Bureau, and response is required by law. The survey will be delivered to the estimated 4 million businesses (small, medium and large) across the country. Information collected includes: company’s physical location; primary business activity; sales, receipts, or revenue; employment and payroll; and industry-specific questions.
Oregon is a unique and remarkable state for many reasons and often overlooked (or forgotten). Today, at 98,000 square miles, Oregon is the ninth largest and, with a population of about 4 million, the 27th most populous U.S. state.
The Portland metropolitan area, which also includes the city of Vancouver, Washington, to the north, ranks the 23rd largest metro area in the nation, with an estimated population of 2,389,228.
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