How Does MultiFunding Grade Banks

Banking Grades is based on data gathered from quarterly FDIC call reports.  Every bank regulated by the FDIC is required to submit loan data on a quarterly basis.  At Banking Grades, we divide the (1) the total dollar value of loans made by a bank under $1,000,000 by (2) the total amount of domestic deposits held by said bank.  Based on our experience of helping small businesses find financing, we believe that loans of $1,000,000 or less are “small business loans”.  This equation generates the Banking Grade.  

MultiFunding’s Bank Report Card

Based on our analysis of the FDIC data, the average bank in America uses 7.29% of their deposits to make loans to small businesses.  Therefore, we established the following grading structure:

A (Excellent):  a bank uses 25% or more of its deposits to make small business loans.

B grade (Good): a bank uses between 10% and 25% of its deposits to make small business loans. 

C grade (Average): a bank uses between 6% and 10% of its deposits to make small business loans.

D grade (Poor): a bank uses between 3% and 6% of its deposits to make small business loans.

F grade (Failing): a bank that uses under 3% of its deposits to make small business loans. 

Caveat:  Banking Grades is based on past loan values and deposit values. It does not take into consideration the current performance of any bank, or other data provided or actions taken by the FDIC.  Therefore, we recommend that you verify the current standing of banks on this list FDIC Failed Bank List or using this FDIC Bank Search Tool.  One more thing – a good grade doesn’t mean that the bank is going to give you a loan.  It means that this is the best place for you to start.  To get a loan anywhere, the bank will consider your credit score, collateral and cash flow.

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