Known for being the eighth largest economy in the world, California is next on our list of Best States for Small Business Lending. California is home to well-known American personalities like Richard Nixon, Julia Child, Joe DiMaggio, and more. The state is also famous for Hollywood, the Golden Bridge, superb beaches and stunning mountains. It has the distinction of hosting the maximum number of schools and universities among all the states in the country. These 700 educational institutions produce some of the finest talent and developed skills that go on to either join existing corporations or start up businesses and professional practices of their own.
As reported by the Office of Advocacy at the U.S. Small Business Administration (SBA), 99.2% or 3.7 million of the total commerce of California comprises of small companies and start-ups. These enterprises employ close to half or 49.6% of the workforce in the state. In other words, 6.7 million are working in this sector alone. As more and more people begin commercial undertakings of their own, their activities give a huge boost to the finance sphere as well. According to statistics gathered by the FFIEC, in the year 2014, lenders in California made loans worth $11.7 billion. Entrepreneurs took out 836,919 loans of denominations under $100,000.
There are many industries where small businesses have made their mark in California. Industries like professional, scientific, and technical services, healthcare and social assistance, retail commerce and trade, construction, business services, accommodation, restaurants and food services are the ones where start-ups have contributed in a big way.