Research Summary. Whether you need property, renovations, or are simply looking for some investment money, having money loaned out can be a regular part of owning a small business. These statistics can help you understand the trends behind small business lending in the US: Show
For further analysis, we broke down the data in the following ways: Small Business Financial StatisticsDespite the rewards, it can also be expensive to run a small business in the U.S. Additionally, many who have great ideas can only afford to jumpstart them with small business loans. Overall, when it comes to the financial status of American small businesses, here are the facts:
Small Business Loan StatisticsMany businesses needed loans to expand, and during the height of the COVID-19 pandemic, many also needed loans to survive. Here are the facts about small business loans:
No one enjoys applying for loans, even if it’s necessary. However, it’s a common process, with just under half of all small businesses needing to apply for one. Here are the facts about small business loan applications, according to our research:
Small Business Loan DemographicsGiven that there are huge disparities between the rural areas and cities in the U.S., it’s unsurprising that small businesses in different areas can have different outcomes. Additionally, the disparities between race, gender, and class can also play a role. Some common small business loan demographics include:
Small Business Loan Statistics by IndustryThe type of industry a small business is in can also impact whether or not that business will be approved for loans. After all, the U.S. is home to small businesses that deal in anything from retail, fitness, car repair, and more. Overall, when it comes to small business loans by industry, here are the facts:
Small Business Lending FAQ
ConclusionDue to the impact of the COVID-19 pandemic on small businesses, the process of acquiring loans is more important than ever before. After all, 33% of small business owners struggle or fail due to a lack of capital, and only 48% have their financing needs met. In 2020 alone, 43% of small businesses applied for small business loans. Of course, there is a disparity between loans and lenders. While the average small business loan is between $400,000 and $650,000, depending on the lender, loans can theoretically be as low as a few thousand dollars or as high as a million. And, with approval ratings no higher than 57%, it’s no surprise that a portion of applications is denied due to credit and capital issues. Luckily, there are several avenues small businesses can take to acquire financing, such as reaching out to the SBA, large national banks, small regional banks, and alternative lenders. What is the average loan amount for a business?According to the latest data from the Federal Reserve: The average small business loan amount is $663,00. The average small business loan amount from alternative lenders is $80,000. Small business loans can range from $13,000 to $1.2 million.
What is the max for a small business loan?SBA loans. You can borrow up to around $5 million if you get a loan partly backed by the Small Business Administration (SBA). However, it's possible to get even more if you take out an SBA 504 loan for equipment or real estate — that program technically has no limit.
What is the average loan amount?The average loan extended to U.S. businesses in 2018 was $663,000. However, depending on the type of loan and the lender, averages may range from $13,000 to $1.2 million.
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Average Small Business Loan Amounts by Lender.. |