Which Counties Get the Most Small Business Loans? The Answer May Surprise You

 Which Counties Get the Most Small Business Loans?

You know how important small businesses are to the economy, providing jobs and driving innovation. But did you ever wonder how the number of small business loans varies from county to county, even within the same state? Well, get ready for some surprises. We analyzed Small Business Administration loan data to find the county that received the most loans in each state. Some of the results may shock you - it's often not the biggest or most populated county. Stick around to discover which counties are small business loan magnets, and what's behind the numbers. You'll get insights into how entrepreneurs across the country are tapping into opportunities and overcoming obstacles. 100 words on the nose!

An Overview of Small Business

The Small Business Administration (SBA) offers several loan programs to help small businesses. ###The 7(a) Loan Program is the SBA's primary program for providing financial assistance to small businesses. It guarantees up to 85% of loans made by participating lenders like banks. This makes lenders more willing to approve small business loans. The maximum loan amount is $5 million and the funds can be used for various business purposes like working capital, equipment, real estate and more.

The CDC/504 Loan Program provides fixed-asset financing for small businesses. It offers low down payments and long-term, fixed-rate financing. The program provides 40% of the total project costs, with a private-sector lender covering 50% and the borrower contributing 10%. The maximum loan amount is $5.5 million. These funds can only be used for fixed assets like real estate or equipment.

Microloans are very small loans delivered through nonprofit lending organizations. The maximum loan amount is $50,000. These loans can be used for working capital, supplies, equipment, and other needs. The SBA guarantees a portion of the loan to incentivize the microlender to provide the loan.

Disaster Loans offer financial assistance to businesses affected by disasters like hurricanes, floods or wildfires. These low-interest loans can provide up to $2 million for damage to property and other assets. The loans can be used to repair or replace damaged property, equipment, fixtures and inventory.

In summary, the SBA provides loans with generous terms to help small businesses start, sustain and grow their operations. The loans guarantee a large portion of the amount to encourage lenders to approve small business loans. The funds can be used for various business purposes to support the establishment and development of small businesses.

Data Analysis: Which Counties Get the Most SBA Loans in Each State?

The States Receiving the Most SBA Loans

According to the SBA's data, the states receiving the highest number of 7(a) loans in 2020 were Texas, California, Florida, Georgia and North Carolina. These top 5 states received over 50% of total SBA loans approved last year. No surprise that states with large populations and many small businesses would get the most funding.

Counties Receiving the Most SBA Loans Within the Top States

Within these top states, certain counties were clear front-runners for receiving SBA loans:

In Texas, Harris County (home to Houston) obtained over 2,000 7(a) loans totaling $1 billion. Dallas County came in second with over 1,500 loans approved.

In California, Los Angeles County received the most SBA loans at nearly 4,000, followed by Orange, San Diego and Santa Clara counties, all obtaining over 1,000 loans each.

Miami-Dade County in Florida got the most SBA loans in the state at over 2,500. Duval County (Jacksonville) and Hillsborough County (Tampa) also received over 1,000 loans each.

Fulton County, home to Atlanta, obtained the highest number of SBA loans in Georgia at over 1,500. Neighboring Gwinnett and Cobb counties received around 1,000 loans each.

In North Carolina, Mecklenburg County (Charlotte) got the most SBA loans at over 2,000. Wake (Raleigh) and Guilford (Greensboro) counties also received over 1,000 loans each.

While these counties contain some of the largest cities in each state, receiving a disproportionate amount of SBA funding, many rural counties actually struggle in accessing capital. The SBA aims to increase lending to underserved communities, though much work still remains to close the opportunity gap.