Community banks were the most common source for Paycheck Protection Program loans among employer firms, and they were the source from which applicants were most successful in obtaining PPP funding, the Federal Reserve Banks said.
According to the latest Small Business Credit Survey, "small banks" accounted for a 48 percent share of PPP loan applicants, compared with 43 percent at large banks, 9 percent at online lenders, and 5 percent at credit unions.
Community banks also had the highest share of PPP applicants that received all the funding they sought, with their rate of 78 percent topping 70 percent at large banks, 63 percent at credit unions, 47 percent at online lenders, and 41 percent at finance companes.
Additionally, community banks remain highly favored lenders by small businesses. The survey found that 81 percent of community bank small-business loan applicants were satisfied with their experience, compared with 68 percent at large banks, 60 percent at finance companies, and 43 percent at online lenders.
Further, community banks' net satisfaction score of 74 percent topped large banks by 14 points, finance companies by 28 points, and online lenders by 49 points.