The SMB Economic Insights released by Lendio shows that the expansion loans granted to small businesses in the U.S. in the fourth quarter of 2019 increased by 29% compared to the average of the three previous quarters.
The survey found that the average small business loan amount increased by 4% while the total amount of loans granted to small business owners grew by 27%. The planned uses of the loans include business expansion, working capital, payroll and purchase of equipment.
The report also shows that small business revenues for the quarter also increased by 11%. Business owners’ personal income grew by 2% while the average number of cash negative days and bankruptcies decreased.
The small business industries that received that largest loans are the construction industry, retail and restaurants. The total amount of loans extended to small businesses increased in 42 states while the number of loans increased in 44 states.
According to Lendio’s founder and CEO Brock Blake, the data shows small business owners’ confidence about their ability to expand and grow. He also said that the improvement in small businesses’ access to capital and their revenue growth will benefit the local economies.