Arizona Ranked No. 6 In U.S. For Small Business Loans

ARIZONA — A new report by Lendio.com names Arizona as one of the top states for small business loans, with a No. 6 ranking among the 50 states for 2019. The report also shows a 25 percent rise in the number of small biz loans granted and a 45 percent higher demand for Arizona loans when comparing the third quarter of 2019 with the prior three quarters’ average. The amounts of loans given to owners of small businesses in the same timeframe rose by 19 percent.

For loan approval rates, Arizona again ranked among the top states, falling in at No. 5. In Q3 of 2019, small business owners’ personal incomes increased by 6 percent versus the prior three quarters’ average. Yearly revenue growth was reported at 9 percent.

Arizona small business loans were most often taken out by owners of retail, restaurant, construction and manufacturing enterprises. Restaurant owners secured the largest loan amounts at an average of $31,737, while construction biz owners were the most likely to take out a loan.

In the third quarter of 2019, nearly $5 million in small business loans was funded in Arizona, and nearly 1,400 loan requests were made. Meanwhile, the estimated economic output of Arizona small business loans was nearly $17 million.

Most small business loan funds went toward working capital (54.30 percent), expansion (29.86 percent) and equipment (15.84 percent), according to the report.

And owners of small businesses have a much easier time now in securing a loan, wrote Lendio CEO Brock Blake. “Every business needs access to capital, not only to operate but to grow. And with online lenders making it easier for small business owners to get financing, growth has never been more attainable.”

The average revolving credit balance in the U.S. and Arizona in Q3 2019 was just under $29,000 and nearly $26,000 respectively.

The Lendio.com report shows an average credit score of more than 650 but lower than 700 in Arizona and nationally for small business owners securing loans in Q4 2018 and the first, second and third quarters of 2019.