While financial giants like California, New York, and Florida have traditionally ruled the financial landscape, a surprising revelation emerges: smaller states are not only keeping pace – but surpassing the giants in small business lending. This, according to a new study from NationalBusinessCapital.com. The fintech lending platform for business owners released its inaugural report on the “Best States to Get a Small Business Loan in 2023”.
The surprising takeaway: Utah, known for its booming fintech industry, takes the top spot as the best state for small business loans.Minnesota and Wisconsin aren’t far behind, earning recognition for their highly effective support systems for local businesses.
The Top 10 list features a mix of states, big and small, each with its unique political climate and creative strategies to help entrepreneurs. Some states offer quick working capital, while others specialize in helping businesses buy property. Some states strongly support new or underserved businesses with microloans. Despite their varied approaches, these top 10 states collectively support small businesses across the U.S.
The full study is available HERE.
Key Findings
- Size Isn’t Everything: Utah’s thriving fintech, and Minnesota and Wisconsin’s efficient lending beat big states like New York and California.
- California’s 24.3% Share: Despite fewer loans, California small businesses got a remarkable 24.3% of SBA 504 dollars for real estate and equipment.
- Southern States Lag: The South lags in small business lending, except for Florida, with Georgia and Texasfollowing.
- Politics Don’t Predict: Surprisingly, political alignment didn’t strongly influence rankings. Despite some advantages for blue states, strongly Republican Utah led the pack, and was joined by top performers Florida and Idaho, indicating that small business financing transcends politics.
THE TOP 10 STATES FOR SMALL BUSINESS LOANS:
#1. Utah
#2. Minnesota
#3. Wisconsin
#4. (tie)…
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