Selina Lum Lam and have the award-winning Taste of Asia Restaurant in Sarasota, Florida. For three years, they are leased the building where she ran the restaurant. When her owner decided to sell the Lums approached their local bank to help finance the purchase of the building, but were rejected because they could not have enough cash flow project. Six other Florida banks gave all the same answer: No.
Finally, always ended the Lums an SBA 7a loan CEI 7a financing to a non-bank SBA lenders, and they assumed the ownership of the building. Without these loans, Selina and Lam would have been forced to move their family and allow a variety of capital improvements and brand value in the lurch, they built up over the years. What happened almost at the Lums reflects a larger pattern. Your postcode can affect how easy it is an SBA loan and , the probability that the loans get repaid.
Would you like where your state ranks to know?
Based on data from 06-2015, we receive directly from the Small Business Administration (SBA), we listed the best and worst countries in terms of access to SBA loans, the level of funding and repayment rates. Below we explain matter where you live, how you can increase your chances of getting approved for a SBA loan.SmartBiz get
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States of access to and the number of SBA Rank Funding
SBA Loans: Number of LoansInfographic
SBA Loans: Number of LoansInfographic
| Rank (by% of SMEs receive SBA loan) | [1945023State] # SBA 7a loans 06-2015 | volume of SBA financing | loan size | # of Small companies, under for SBA loan accounting for sales * | % of small businesses, the SBA Get Loans | |
|---|---|---|---|---|---|---|
| 1 | UT | 15981 | $2,710,138,019 | $169,585 | 779,358 | 2.05% |
| 2 | ID | 6341 | $1,197,309,899 | $188,820 | 450,075 | 1.41% |
| 3 | NH | 5447 | $713,829,492 | $131,050 | 392,817 | 1.39% |
| 4 | RI | 3862 | $642,831,987 | $166,451 | 20,064 | 1.33% |
| 5 | WI | 16556 | $4,421,185,670 | $267,044 | 1,322,289 | 1.25% |
| 6 | VT | 2624 | $403,412,504 | $153,740 | 230,700 | 1.14% |
| 7 | MN | 16705 | $4,093,154,448 | $245,026 | 1,511,199 | 1.11% |
| 8 | OH | 30314 | $5,465,373,237 | $180,292 | 2,783,073 | 1.09% |
| 9 | ND | 2192 | $466,554,218 | $212,844 | 212,832 | 1.03% |
| 10 | MT | 3466 | $754,332,239 | $217,638 | 345,162 | 1.00% |
| 11 | HI | 3579 | $317,127,0 | $88,608 | 367,698 | 0.97% |
| 12 | WA | 057 | $5,028,584,599 | $313,171 | 1,665,855 | 0.96% |
| 13 | MA | 17912 | $2,475,925,879 | $138,227 | 1,861,296 | 0.96% |
| 14 | ME | 3889 | $607,311,512 | $156,161 | 424,344 | 0.92% |
| 15 | IN | 12918 | $3,273,661,470 | $253,419 | 1,487,085 | 0.87% |
| 16 | AZ | 13192 | $4,324,145,922 | $327,785 | 1,558,512 | 0.85% |
| 17 | CO | 14572 | $4,277,797,043 | $293,563 | 1,717,638 | 0.85% |
| 18 | NE | 4235 | $1,031,725,995 | $243,619 | 504,420 | 0.84% |
| 19 | MI | 21137 | $4,937,163,549 | $233,579 | 2,569,056 | 0.82% |
| 20 | OR | 8422 | $2,094,448,860 | $248,688 | 1,040,883 | 0.81% |
| 21 | MO | 11778 | $2,995,474,752 | $254,328 | 1,523,136 | 0.77% |
| 22 | MS | 5489 | $1,397,039,137 | $254,516 | 734,265 | 0.75% |
| 23 | CA | 77663 | $26,621,829,950 | $342,787 | 11,100,000 | 0.70% |
| 24 | KS | 5143 | $1,297,086,761 | $252,204 | 740,499 | 0.69% |
| 25 | CT | 6870 | $1,618,551,668 | $235,597 | 999,234 | 0.69% |
| 26 | SD | 1721 | $399,916,143 | $232,374 | 250,002 | 0.69% |
| 27 | NJ | 16685 | $5,075,843,756 | $304,216 | 2,460,09 | 0.68% |
| 28 | IA | 5376 | $1,576,406,753 | $293,230 | 793,152 | 0.68% |
| 29 | NV | 4862 | $1,274,583,621 | $262,152 | 714,486 | 0.68% |
| 30 | DE | 1515 | $384,106,800 | $253,536 | 224,739 | 0.67% |
| 31 | PA | 19758 | $4,713,246,508 | $238,549 | 3,000,000 | 0.66% |
| 32 | NM | 2961 | $854,307,482 | $288,520 | 457,551 | 0.65% |
| 33 | NY | 41164 | $7,579,911,829 | $184,139 | 6,300,000 | 0.65% |
| 34 | TX | 45725 | $14,05,374,798 | $325,979 | 7,0,000 | 0.64% |
| 35 | WY | 1187 | $343,655,161 | $289,516 | 189,867 | 0.63% |
| 36 | AK | 1279 | $477,922,184 | $373,669 | 207,345 | 0.62% |
| 37 | IL | 22333 | $5,610,959,188 | $251,241 | 3,0,000 | 0.62% |
| 38 | KY | 5794 | $1,271,593,867 | $219,467 | 1,023,441 | 0.57% |
| 39 | GA | 16205 | $7,440,258,088 | $459,133 | 2,946,336 | 0.55% |
| 40 | OK | 5417 | $1,709,09,076 | $315,656 | 1,010,724 | 0.54% |
| 41 | DC | 1093 | $276,884,700 | $253,325 | 204,708 | 0.53% |
| 42 | MD | 8877 | $2,135,683,542 | $240,586 | 1,685,511 | 0.53% |
| 43 | WV | 1787 | $357,523,134 | $0,069 | 345,486 | 0.52% |
| 44 | VA | 9488 | $2,540,771,756 | $267,788 | 2,044,551 | 0.46% |
| 45 | LA | 5760 | $1,369,855,194 | $237,822 | 1,281,870 | 0.45% |
| 46 | AR | 3141 | $1,155,531,981 | $367,887 | 720,369 | 0.44% |
| 47 | NC | 11001 | $3,506,798,361 | $318,771 | 2,531,172 | 0.43% |
| 48 | FL | 28031 | $8,409,193,296 | $299,996 | 6,00,000 | 0.41% |
| 49 | AL | 4376 | $1,393,657,458 | $318,477 | 1,147,572 | 0.38% |
| 50 | TN | 6302 | $1,09,212,656 | $302,953 | 1,60,599 | 0.37% |
| 51 | SC | 4116 | $1,609,868,922 | $391,125 | 1,152,822 | 0.36% |
* The number of small companies, which can be obtained under SBA loans, the number of small businesses multiplied in the state 3 This explains sales of small businesses. We estimate that about 20% of small businesses closed and entered into the market every year in every state from 06 to 2015.
States rank of SBA Loan repayment rate
SBA loan: Repayment RateInfographic
| Rank | State | # SBA 7a loans without outstanding loans (06 -2015) | # of paid loan in full | SBA Loan repayment rate (06-2015)* |
|---|---|---|---|---|
| 1 | ND | 1400 | 1107 | 79.07% |
| 2 | MT | 2069 | 1557 | 75.25% |
| 3 | WY | 628 | 458 | 72.93% |
| 4 | SD | 1038 | 743 | 71.58% |
| 5 | VT | 1436 | 1009 | 70.26% |
| 6 | NE | 2326 | 1619 | 69.60% |
| 7 | KS | 3030 | 2093 | 69.08% |
| 8 | ME | 2140 | 1477 | 69.02% |
| 9 | AK | 560 | 382 | 68.21% |
| 10 | NH | 2841 | 100 | 66.88% |
| 11 | IA | 3059 | 2035 | 66.53% |
| 12 | MN | 9315 | 6189 | 66.44% |
| 13 | HI | 1726 | 1112 | 64.43% |
| 14 | WI | 8865 | 5697 | 64.26% |
| 15 | NM | 1625 | 1028 | 63.26% |
| 16 | OK | 3142 | 1985 | 63.18% |
| 17 | UT | 10327 | 6508 | 63.02% |
| 18 | KY | 3349 | 2106 | 62.88% |
| 19 | MA | 8957 | 5588 | 62.39% |
| 20 | ID | 3828 | 2387 | 62.36% |
| 21 | IN | 7227 | 4496 | 62.21% |
| 22 | OR | 4877 | 3030 | 62.13% |
| 23 | AR | 1676 | 1040 | 62.05% |
| 24 | MS | 3028 | 1871 | 61.79% |
| 25 | WV | 1030 | 634 | 61.55% |
| 26 | MO | 6732 | 4142 | 61.53% |
| 27 | PA | 11222 | 6719 | 59.87% |
| 28 | OH | 108 | 9483 | 59.24% |
| 29 | RI | 2068 | 1224 | 59.19% |
| 30 | LA | 3413 | 2015 | 59.04% |
| 31 | CO | 8351 | 4862 | 58.22% |
| 32 | WA | 90 | 5300 | 58.11% |
| 33 | TX | 25084 | 14560 | 58.04% |
| 34 | CT | 3893 | 2225 | 57.15% |
| 35 | NC | 6126 | 3480 | 56.81% |
| 36 | NY | 2540 | 14355 | 56.32% |
| 37 | MI | 11283 | 6247 | 55.37% |
| 38 | DE | 799 | 437 | 54.69% |
| 39 | VA | 5669 | 3078 | 54.30% |
| 40 | AL | 2354 | 1258 | 53.44% |
| 41 | MD | 5069 | 2694 | 53.15% |
| 42 | IL | 14093 | 7364 | 52.25% |
| 43 | DC | 684 | 346 | 50.58% |
| 44 | TN | 3559 | 1785 | 50.15% |
| 45 | SC | 2116 | 1044 | 49.34% |
| 46 | AZ | 7515 | 3609 | 48.02% |
| 47 | CA | 44351 | 21148 | 47.68% |
| 48 | NJ | 10033 | 4576 | 45.61% |
| 49 | NV | 2962 | 1249 | 42.17% |
| 50 | GA | 8536 | 3593 | 42.09% |
| 51 | FL | 16824 | 6876 | 40.87% |
* Redemption corresponding rate on the number of loans that have been paid by the total number of loan in full without divided currently outstanding loans. Excluded were outstanding loans because we do not know whether this loan is repaid on time. Loans that were not paid by the lender or settled with the lender either derecognised for less than the amount in full were due.
Please email us when we want to get from the SBA access to the raw data.
What can we learn from these data information
Overall Best State for SBA loans: Vermont
it was difficult for us the best state to rank SBA to obtain and repay loans, because there was no state which inspires us in all three measures: access to SBA loans, loan size and repayment rate. Here, Vermont, the most developed of all the states on these three points.
In Vermont, 1.14% of small businesses received SBA loans between 06 and 2015. This was the sixth highest of all states. While 1.14% as an incredibly low number seems to be, SBA loans are very difficult to qualify, leaving only a very small part of the business to be successful. For Vermonters the SBA received loans, the average loan size was $ 153,740. This is a good loan size, but other countries such as George, South Carolina, and Alaska were the best in terms of the loan amount. The repayment rate in Vermont was excellent. Over 70% of Vermont small businesses paid their SBA loan back on time, so this is the fifth highest in the nation SBA repayment rate. ! Good work Vermont
Total Worst State for SBA loans: Florida
Unfortunately, the Sunshine State not fare well in our rankings. Only 0.41% of eligible small businesses in Florida could SBA loans received between 06 and 2015 (only three other states were worse than this). Florida's repayment rate was very poor. Only about 40% of Florida companies that receive an SBA loan paid it back on time. This means that, to be repaid as a whole, Florida companies fought their SBA loan. The only bright spot is average loan size was in Florida $ 299,996.
Where it is easiest to get a SBA loan?
- Utah ranked # 1 for access to SBA loans. In Utah more than 2% of the eligible small businesses got an SBA loan. After Utah came in second and third spots Idaho and New Hampshire. Vermont, our overall best state, came in sixth place for access to SBA funding. 1.14% of Vermont small businesses obtain SBA loans.
- Georgia, South Carolina, and Alaska had the highest loan SBA sizes. Even if you qualify for a loan SBA, it will not do well you much if you can not the amount of capital you need. In these three states, the average loan amount over $ 370,000, respectively.
Where it is most difficult an SBA loan?
- South Carolina, Tennessee and Alabama were worst for access to SBA funding. Less than 0.40% of the companies in these countries get SBA loans between 06 and 2015
- Hawaii was the worst state for average loan size. On average Hawaiian small businesses, the SBA received loans only $ 88,608. Hawaii is the only state in which was the average loan amount below $ 100,000.
Where are redeemable SBA loans most likely?
- North Dakota, Montana, Wyoming and South Dakota had the best SBA loan repayment rates . About three quarters of loans SBA were given for companies in these countries paid on time back. Vermont, our overall winner, also had a high repayment rate of 70%, coming in fifth place in.
North Dakota, Montana, Wyoming and South Dakota, some who had best SBA loan repayment rates in the country. Greater economic trends could explain why. These 5 countries are home to industries such as gas and oil fracking , the better helped them weather the economic crisis than other countries.
These states also have a tiny small business population and a smaller number of SBA loans. The smaller size makes it easier to reach a better repayment rate. This could explain why smaller states like Maine and our overall winner Vermont, good repayment rates.
Where are the least likely to repay SBA loans?
- Florida had the worst rate repay SBA loans. Only 40% of the loan SBA to Florida residents were given between 06 and 2015 repaid on time.
- Along with Florida, Georgia, New Jersey, Nevada and California rounded out the bottom five states for worst overall repayment rates.
- between states with less than 10,000 loans, Georgia, Nevada and Arizona had the worst repayment rates. More than half of the issued to these three countries loans were not repaid on time. Given the small sample set, these figures are particularly disturbing.
Florida, California and Nevada for SBA loan repayment in the bottom 5 were. These states were some of the hardest hit by the economic crisis and real estate bubble. If you look at the states have the highest mortgage default rates had, you see parallels to the data in this article. Small businesses in states like Florida have had a harder time, repay their loans because they were also struggling with mortgages and other debt.
On a positive note, there are indications that things turn in these countries for operators. For example, Selina and Lam Lum applied to several Florida banks for an SBA loan but were denied because they could not have enough cash flow show. Finally, a non-bank lender, CEI 7a financing, came to her rescue.
Lam Lum, head chef at Taste of Asia Restaurant in Sarasota, FL. Lum and his wife Selina were 7 Florida rejected banks before CEI 7a financing they finally approved for an SBA loan.
How to (increase regardless of postal code) your chances of SBA loans
loans SBA for small businesses across the country are attractive for their low interest rates and long term concepts. They are one of the cheapest sources of capital for a small business.
recommended SBA loan provider is SmartBiz. They operate nationwide with small businesses and make a SBA loan, usually a 2 or 3 months process, quickly and easily. You can save up to $ 350K, online request 7a loan for SBA and if approved, will receive funding in only 7 days.
If you would prefer to work with a local bank, we recommend you to find out if the bank is a SBA preferred lender ( Click here to view a list to see of preferred SBA lender ). Preferred lenders have a proven track record of helping small businesses obtain SBA loans and a streamlined application process. Alternatively, we recommend working with a non-bank lenders such as CEI 7 (a) financing , which is one of fourteen national non-bank lenders to provide licensed SBA loan. Nonbank lenders often work with small business owners who have been rejected by the banks.
matter where you live or where your business is, there are steps you can take to improve your chances of qualifying for an SBA loan:
- improve your personal credit score - to qualify for a SBA loan, you need to usually have a personal loan, score of 660 or higher. This is getting in approves the most important factor. If you're not sure if your credit score, here to check free .
- Improve your business credit score - Every company has a credit score, and the higher your business credit score , the more likely you are to qualify for an SBA loan. They Check your business credit free with Nav
- increase in turnover and profitability -. Lenders want to work with financially strong companies. Before applying for a loan SBA, we recommend you to get your business in the best financial shape
- Get enough collateral -. The more security you can bring the table, the greater the chance you have to qualify for an SBA loan. If your business that does not have much collateral, you can personal assets such as your home or car pawn
- other debt pay-off -. Check Lenders your business' debt service coverage ratio (DSCR) before deciding whether to approve loans for a SBA. DSCR measures your company ability to service debt. Your DSCR should qualify usually greater than 1.25 for an SBA loan
- Wait it out -. Generally, SBA loans go to businesses that are for operating at least 2 years. It is difficult to get an SBA loan to start a new business or buy an existing business. For start-ups or existing business to buy, the lender usually already expect you experience in the industry and have a 20% down payment.
If the attempt for an SBA qualify loans are not successful, there are many alternatives to SBA loans existing businesses and new companies are .
Bottom Line
Your postcode can make a difference when it comes to how easy it is, an SBA loan, the amount of means you will receive, and to get the chance, it is paid on time back. But no matter where you live, there are actionable steps you can take to get on track for an SBA loan to qualify.
SmartBiz is our recommended provider of SBA loans. You can get approved for a loan through SBA SmartBiz in 5 minutes in advance and funding in just 7 days to receive
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