Small business loan approval percentages at big banks (more than $10 million in assets) rose from 14.9% in March to 15.1% in April, and approval at small banks (under $10 billion in assets) also increased, rising from 20.6% in March to 20.8% in April, according to Biz2Credit’s Small Business Lending Index.

Among several categories of non-bank lenders, approval percentages also climbed. Institutional lenders approved 25.4% of funding requests in April, up one-tenth of a percent from 25.3% in March. Alternative lenders’ approval rates rose from 26.6% in March to 26.8% in April. However, credit unions stalled at 20.6% in April after dropping one-tenth of a percent in March.

“Small business lending approval rates continue to take incremental steps, but we are still nowhere near pre-pandemic highs,” Rohit Arora, CEO of Biz2Credit, said. “With the Federal Reserve raising interest rates last week, the cost of capital for small business borrowers will rise. This will have an impact on future borrowing decisions. Most small business loans come with variable rates, and in the foreseeable future, those rates are likely to rise.”

To compile the index, Biz2Credit analyzed loan requests from companies in business more than two years with credit scores greater than 680. The results are based on primary data submitted by more than 1,000 small business owners who applied for funding on Biz2Credit’s platform.