Big, Small, Red or Blue States Thrive on Small Business Lending Regardless of Size or Politics

These Are The Best States To Get a Small Business Loan, According to New Report From National Business Capital 

HAUPPAUGE, N.Y., Sept. 13, 2023 /PRNewswire/ — 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 The fintech lending platform for business owners released its inaugural report on the “Best States to Get a Small Business Loan in 2023”.  

The report dives deep into a pressing question: Do some states make it easier for small businesses to get loans?

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 Texas following.

  • 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.


#1.  Utah

#2.  Minnesota

#3.  Wisconsin

#4.  (tie) California

#4   (tie) Colorado

#6.  New York

#7.  Massachusetts

#8.  New Jersey

#9.  Florida



#41. Tennessee

#42. Alaska

#43. Delaware

#44. Louisiana

#45. New Mexico

#46. Mississippi

#47. Kentucky

#48. Arkansas

#49. Hawaii

#50. West Virginia


  • 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, “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.”


NationalBusinessCapital helps entrepreneurs secure quick and fair financing to save time and cultivate sustainable growth.

Our stress-free online platform is designed for simplicity and speed, helping business owners go from application to approval in a matter of hours. From SBA loans to lines of credit, equipment financing, and more, business owners can access all the different financing programs available to them in one place. Through our streamlined process, we have helped clients secure $2 billion in financing since 2007.