DO BANKERS STILL WANT YOUR BUSINESS PLAN?

Do Bankers Still Want Your Business Plan? YES. According to two recent, but separate studies provided by the U.S. Fed and the FDIC, 41% of all bank lenders want a business plan as part of the “soft” criteria when applying for a small business loan. Now, let’s look at the specifics by loan size and the size of the bank.
 
For Large Loans $1 Million+, 65% of Small Banks require a Business Plan in comparison to 36% of Large Banks
 
For Medium Loans $250,000, 41% of Small Banks require a Business Plan in comparison to 15% of Large Banks
 
For Micro Loans up to $25,000, 19% of Small Banks require a Business Plan in comparison to 9% of Large Banks
 
 A quote provided by the public domain’s sphere, answers the question of whether or not bankers still require a business plan as follows: “Yes, bankers still want business plans because they use them to assess the viability and profitability of your business before approving a loan. Even if you have an existing business, a plan helps to align stakeholders and provides a strategic road map. While the concept of a formal business plan may be evolving, the core elements—demonstrating market opportunity and financial capability—remain crucial for traditional lenders like banks.” Quote from the Public Domain
 
According to research conducted by McDaniel Consulting GBSFE, a Dallas-based strategic business writing firm that started in year 2001, there are 4,300+ banks throughout the U.S. Founder, Syreeta V. McDaniel, MBA notes, “That’s the most banks throughout anywhere in the world.” Her findings were based on the study, “What Country Has the Most Banks?” provided by the Helgi Library in Prague Czech Republic. The link is here
 
NPR substantiates these assertions in its report, “The U.S. Has More Banks than Anywhere on Earth,” The NPR, National Public Radio, account emphasized that American communities are autonomous and independent, which makes them more prone to form a new bank in their regional areas. Moreover, the vast spread-out topography of the American landscape influences the number of banks. It is better to have a bank branch that is closer to home then a larger central bank that is far away.  
 
Aside from banks, there are 5,000+ credit unions that also issued personal and small business loans to its members. The National Credit Union Administration and credit unions are separate from traditional banks. However, credit union members may also enjoy the same $250,000 cash deposit protection as bank depositors do.

The World Council of Credit Unions, WOCCU, counts 80,000+ credit unions across 120 nations around the globe. The U.S. has the most credit unions than any of the other nations.
 
For more stats on banks and which business owners actually received business loans click here to attend one of our FREE Intro Events or simply join our list. Also, keep your eye out for our 800-hour, 400 page unabridged version of, “How to Really Get Funding for Your Small Business: Solutions for Micropreneurs.”

Other Sources:
NPR 2023 Study on U.S. Banks
NPR 2023 Study