Ranking of States Based on Approval Rates and Loan Sizes
SILICON SLOPES, Utah – April 30, 2018 – In honor of National Small Business Week, Lendio, the nation’s leading marketplace for small business loans, today announced its third annual list of top 10 states for small business lending, based on lending data from the Lendio platform, which matches businesses with more than 75 lenders.
Key Findings:
- Utah and California tied at No. 1.
- In each of the top states, demand for loans increased year-over-year.
- The states with the biggest percent increase in demand for loans year-over-year were Texas (119%), Illinois (101%), Florida (95%) and Utah (81%).
- In eight of the top states, the average loan size per borrower increased by 60 percent or more year-over-year.
- The states with the largest percent increase in average loan size year-over-year were Massachusetts (147%), New Jersey (121%), Colorado (100%) and California (91%).
- Utah, California, Washington, Texas and Florida remain stronghold states, ranking on the list three years running.
- New Jersey, Massachusetts and Illinois ranked among the top 10 states for small business lending for the first time.
According to a Federal Reserve Bank of Cleveland report, nearly half of small businesses need additional funding each year; however, since 2008, it’s been a challenge for small business owners to access financial capital. Continued growth and innovation in online lending platforms is transforming the funding landscape.
Pudding on Smiles, owned by Michael and Kendra Sanders of Dallas, Texas, is one of the many success stories to come from better access to growth capital for small businesses. They began their online pudding shop with around $400 of their own cash. “We didn’t seek out opportunities because we didn’t have the production capacity,” said Michael Sanders. “Getting funding in place has helped us to really start expanding our business. We hope to have a larger national and potentially global brand in the near future.”
“Lack of financing makes it hard for small business owners to focus on the big picture,” said Brock Blake, CEO and founder of Lendio. “This list showcases how online lending technology is giving entrepreneurs the freedom to create, innovate and succeed.”
In 2017, Lendio helped facilitate more than $300 million in funding in all 50 states, a 62 percent annual increase in loans originated through its platform. Loans were made to entrepreneurs in diverse industries including construction, retail, restaurants and health care.
About Lendio’s Top 10 States Ranking
The top 10 states ranking is based on a calculation of several key indicators, including approval rates and loan sizes, from among thousands of Lendio’s customers from April through March each year. More information about the 2017 and 2016 top 10 states for small business lending, including the average loan size on the Lendio platform, can be found at www.lendio.com.
