Lendio, the nation’s largest marketplace for business loans, recently announced its annual list of top 10 states for small business lending, based on loan data from the Lendio platform, which matches businesses with more than 75 lenders.
Utah continues its stronghold ranking among top-performing states with the state earning the number two spot. Utah is home to 277,140 small businesses.
“The Lendio ranking demonstrates the state’s commitment to seeing small businesses flourish. Small businesses are the backbone of Utah’s economy. When small businesses succeed the entire state succeeds,” says Val Hale, executive director of the Governor’s Office of Economic Development.
In 2018, Lendio helped facilitate nearly $480 million in funding in all 50 states. Loans were made to entrepreneurs in diverse industries including construction, restaurants, health care and retail.
It’s still a challenge for small business owners to access capital through traditional methods. According to the Federal Reserve Bank’s 2019 Small Business Credit Survey, funding gaps are most acute for small businesses seeking $100–250K in financing.
The report also shows that online lending platforms are bridging this gap, with 32 percent of small business loan applicants turning to online lenders in 2018.