Small Business Loans? Florida Is Where You’re Most Likely To Get One

Jon Morgan
Published by Jon Morgan | Co-Founder & Chief Editor
Last updated: October 14, 2024
Methodology
We diligently evaluate each service provider showcased in our reviews and guides. By interacting anonymously with their business formation and services, and leveraging the insights of an independent review team, we strive to offer unbiased, evidence-based suggestions. Learn more
  • 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.

 

A top view of business loan application form in Florida

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:A person applying for 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

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:

A person receiving money from business loan

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

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:A business loan concept image

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

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

You may also readSmall Business Confidence Peaks in June, Inflation Worries Linger

About The Author

Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
Learn more about our editorial policy
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
Learn more about our editorial policy
Leave a Reply

Your email address will not be published. Required fields are marked *