5 Best States for Small Business Loans
Fit Small Business compiled a list of the best and worst states for SBA loans, based on data collected from 2010 through 2018. The results are divided by the type of analysis that led to the ranking.
By Percent of Loans Approved
In this analysis, Fit Small Business considered the percentage of small businesses receiving loans. The top five states in this ranking were:
- Utah - 16.26% of eligible small businesses received funding
- New Hampshire - 15.69% received a loan
- Ohio - 15.52% of small businesses received financing
- Rhode Island - 13.5% received funding
- Massachusetts - 12.9% of businesses received an SBA loan
By Average Loan Amount
A second ranking, based on the average loan amount, resulted in a different list of states. The top five in terms of funding received are:
- Georgia - $520,854
- South Carolina - $430,650
- Arkansas - $388,735
- Tennessee - $387,768
- Alaska - $378,937
By Rate of Repayment
The third analysis considered what percentage of loans were paid in full, compared with the total discharged. These numbers can help you understand how feasible it is for small businesses to repay the amount borrowed in these states. The top five in terms of repayment were:
- Montana - 77.92%
- North Dakota - 77.79%
- New Hampshire - 75.37%
- Maine - 75.21%
- Utah - 74.63%
Considering all three rankings, New Hampshire ranked best overall. It was high in access to SBA loans, at 15.65%, and ease of repayment, with 75.37% of businesses paying in full. The average loan amount was a little lower at $107,927.