Biz2Credit recently released a report ranking the top ten states for small business loans based on requests through their website. Despite the high rankings for east coast states, it is interesting to note that most applicants are rejected when applying for business loans. While there are many different factors for this, a key factor in the decisions seems to be a company’s credit score. Take a look at the top ten states below along with the approval rates:
- New Jersey (23.4%)
- New York (19%)
- Illinois (15%)
- California (14.2%)
- Pennsylvania (12.9%)
- Florida (11.1%)
- Georgia (10.2%)
- Texas (10%)
- Ohio (8.8%)
- North Carolina (7.9%)
The study was performed based on the responses of “more than 50,000 loan applications nationwide over the last 12 months.” Of the top 5 states, 3 were from the east coast. The south saw the most states in the Top 10 with 4. All states either have a large metropolitan city in their boarders or are close to multiple large cities such as New York, Chicago, or Los Angeles.
