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 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) California

#4   (tie) Colorado

#6.  New York

#7.  Massachusetts

#8.  New Jersey

#9.  Florida

#10.Idaho

THE BOTTOM 10 STATES FOR SMALL BUSINESS LOANS

#41. Tennessee

#42. Alaska

#43. Delaware

#44. Louisiana

#45. New Mexico

#46. Mississippi

#47. Kentucky

#48. Arkansas

#49. Hawaii

#50. West Virginia

Methodology

• SBA 7(a) Loan Approvals Per 100,000 Residents (25%)
• SBA 7(a) Average Loan Size (15%)
• SBA 7(a) % of Dollars (15%)
• SBA 504 Loan Approvals Per 100,000 Residents (20%)
• SBA 504 Average Loan Size (10%)
• SBA 504 % OF DOLLARS (10%)
• Microloan Intermediaries (5%)

"Our study drives home just how vital small businesses are all across the United States," says Joe Camberato, CEO, NationalBusinessCapital.com. "Whether it's Utah's fintech boom or Minnesota's efficient lending infrastructure, this report offers valuable insights for entrepreneurs seeking capital. Securing capital from banks is tougher than ever for SMBs, but many non-bank lenders are still providing funding in this challenging economy."