Thank you for visiting BankingGrades.com.
We're excited to launch BankingGrades 2.0 in partnership with Entrepreneur Media, and the new site can be found here.
In December 2012, we launched BankingGrades as an option to help small-business owners and entrepreneurs find and identify banks in their communities that were focused on lending to small-business owners.
The site was based on a methodology in which we would take each bank’s small-business loan balances (as reported in FDIC call reports) and divide it by their domestic deposits. This ratio became the basis of their score – or grade.
As with any new scoring system or methodology, we received both praise and criticism. Some of the biggest banks in the country argued that irrespective of how much they lent to small businesses, they could never win with our methodology. Meanwhile, some of the tiniest banks scored incredibly well – because all they did was lend to small businesses.
After a lot of research and careful consideration, we evolved to a new methodology – BankingGrades 2.0. In our new methodology, we do not take deposits into consideration. Instead, we take the small-business loan balances of a bank with balances between $100K and $1,000 M (as reported to the FDIC) and divide it by the number of branches to come up with a ranking.
Using BankingGrades 2.0, an entrepreneur who is shopping for a loan can see the banks in their neighborhood and have an informed decision about the amount of small-business loans each of them has under management.