Small Business Loans? Florida Is Where You’re Most Likely To Get One
- Florida is officially the state where entrepreneurs are most likely to obtain small business loans, followed by New Jersey and California.
- In contrast, you are less likely to get a small business loan approved in West Virginia, Iowa, and Indiana.
- North Dakota, South Dakota, and Indiana are the states that provide the highest loan amounts on average.
- Nevada, Florida, and Arizona have the lowest average loan sizes, which may indicate easier access to smaller, potentially more manageable loans.
Florida is the state where entrepreneurs are most likely to get a small business loan approved, but if you need the biggest amount possible, North Dakota might be a better bet.
The research by leading business consultancy firm Venture Smarter analyzed small business lending data for 2020 from the Small Business Administration, as well as population data from the U.S. Census Bureau.
The study examined loan accessibility through two metrics – loans per capita (number of loans issued per 1,000 residents in each state) and average loan size (total value of loans issued per state divided by the number of loans given).
States most likely to grant a small business loan:
The findings suggest that Florida is where one is most likely to obtain a small business loan, with 31.1 loans per capita – this is more than a third (37.63%) higher than the national average across all states (21.25 loans per capita).
Second is New Jersey with 31.0 loans per capita, just barely behind Florida. Rounding out the top three states is California with 30.4 loans per capita.
Jon Morgan, CEO and founder of Venture Smarter commented on the findings: “These results provide useful and actionable insight into which areas of the country are more conducive for small business growth and survival. Securing the right financing is especially crucial for start-ups that may not have yet the wings to soar to great heights.
It is interesting to see that states like Florida and California, despite their larger populations, are still able to offer a sufficient number of loans to power their economic engines. But as New Jersey, Montana, and Wyoming show – smaller states are no slouches at this either.”
When it comes to average loan sizes, North Dakota stands out with $57,303, which is a significant 40.07% above the national average. South Dakota and Indiana follow closely, highlighting their robust support for entrepreneurs.
Conversely, states like Nevada, with an average loan size of $26,604, offer smaller, potentially more manageable loans, easing the repayment burden for small businesses. This variation across states underscores the diverse financial landscapes that entrepreneurs navigate, with each offering unique advantages.”
States most likely to grant a small business loan |
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State |
Population (2020) | Number of Small Business Loans (each worth $1M or less) | Loans per Capita |
Florida |
21,538,187 | 670,370 | 31.1 |
New Jersey |
9,288,994 | 287,635 | 31.0 |
California |
39,538,223 |
1,203,122 | 30.4 |
Colorado |
5,773,714 |
166,415 | 28.8 |
New York | 20,201,249 | 574,708 |
28.4 |
Connecticut |
3,605,944 | 100,243 | 27.8 |
Montana | 1,084,225 | 30,017 |
27.7 |
Massachusetts | 6,892,503 | 184,351 |
26.7 |
District of Columbia | 689,545 | 18,386 |
26.7 |
Wyoming | 576,851 | 15,034 |
26.1 |
States with the highest average loan sizes:
In North Dakota, small business loans have an average size of $57,303 – the highest among all states. That amount is 40.07% higher than the national average of $38,173.40.
South Dakota ranks closely behind in second with $56,858, while Indiana places third with an average loan size of $50,022.
Access to larger loans allows small businesses and aspiring entrepreneurs to invest more capital in their operations, which could lead to the creation of more jobs. It could also be risky if the business struggles, as they might now be saddled with bigger debt and higher interest payments.
States with the highest average loan sizes |
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State |
Population (2020) | Number of Small Business Loans (each worth $1M or less) | Total Loan Value in USD (1000) | Average Loan Size ($) |
North Dakota | 779,094 | 16,598 | 951,119 |
57,303 |
South Dakota |
886,667 | 18,000 | 1,023,442 | 56,858 |
Indiana |
6,785,528 | 102,248 | 5,114,634 | 50,022 |
Alabama |
5,024,279 | 82,859 | 4,139,522 | 49,959 |
Nebraska | 1,961,504 | 33,349 | 1,598,171 |
47,923 |
Wisconsin | 5,893,718 | 90,608 | 4,186,731 |
46,207 |
Iowa |
3,190,369 | 45,636 | 2,094,304 | 45,891 |
Tennessee | 6,910,840 | 112,185 | 5,120,071 |
45,640 |
West Virginia | 1,793,716 | 22,947 | 1,010,555 |
44,039 |
Missouri | 6,154,913 | 114,287 | 5,009,028 |
43,829 |
States with the lowest average loan sizes:
Regarding the states with the lowest average loan sizes, Nevada tops the list. The study found that on average, entrepreneurs there can expect a loan amounting to $26,604 – which is 35.72% lower than the national average. Florida and Arizona round out the top three.
On the bright side, such lower average loan sizes might indicate easier access to potentially more manageable loans – lessening the burden of repayment for many small businesses.
States with the lowest average loan sizes |
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State |
Population (2020) | Number of Small Business Loans (each worth $1M or less) | Total Loan Value in USD (1000) | Average Loan Size ($) |
Nevada |
3,104,614 | 70,743 | 1,882,022 | 26,604 |
Florida | 21,538,187 | 670,370 | 17,974,457 |
26,813 |
Arizona | 7,151,502 | 158,131 | 4,583,721 |
28,987 |
Connecticut |
3,605,944 | 100,243 | 2,914,082 | 29,070 |
California | 39,538,223 | 1,203,122 | 35,054,908 |
29,137 |
Massachusetts |
6,892,503 | 184,351 | 5,443,964 | 29,530 |
New York |
20,201,249 | 574,708 | 16,999,756 |
29,580 |
New Hampshire | 1,377,529 | 32,936 | 994,277 |
30,188 |
New Mexico |
2,117,522 | 34,303 | 1,043,138 |
30,410 |
New Jersey | 9,288,994 | 287,635 | 8,985,507 |
31,239 |
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