86% of Small Businesses Get Rejected by Big Banks

America's largest banks are abandoning small businesses at an alarming rate. According to  a recent article by Small Business Finance Insights, small business loan origination at banks with assets over $50 billion has declined by 23% since 2019, even as these institutions reported record profits in 2024.

The numbers tell the story: large banks now approve only 14% of small business loan applications, compared to 49% at community banks and 63% at alternative lenders. The reason is simple economics—a $50,000 small business loan requires nearly the same underwriting resources as a $5 million commercial loan, but generates a fraction of the fee income.

This scenario plays out thousands of times daily. At ElmBlue Capital, we regularly work with established companies that have been abandoned by traditional banks not because they're risky, but because they're not big enough to matter.

The Alternative Solution

While traditional banks retreat, alternative lenders have stepped in. Small Business Finance Insights reports that online platforms now originate over $15 billion annually in small business loans. At ElmBlue Capital, our 2024 approval rate was nearly 75%—more than five times higher than large banks' 14% rate—and we provide funding decisions within days rather than weeks.

Our specialized focus allows us to understand specific industries, move at business speed, and consider the full picture—cash flow, market position, and growth potential—not just balance sheet metrics that favor larger companies.

The Bottom Line

If traditional banks have turned you away, you're not alone and not out of options. Today's alternative lenders offer competitive terms, sophisticated underwriting, and relationship focus that community banks once provided.

The small business lending crisis represents both challenge and opportunity. At ElmBlue Capital, we're committed to ensuring qualified businesses have access to growth capital. Because when small businesses succeed, entire communities benefit, and the American economy grows stronger.

ElmBlue Capital specializes in providing growth capital to small and medium-sized businesses. Contact us to learn how we can help your business access the capital it needs.