1) Utah and California tied for the top state for small business lending in 2018, according to Lendio's annual report. Demand for loans and average loan sizes increased across all top 10 states. 2) Economic optimism among small business owners is rising, with half feeling optimistic about the economy and over 60% expecting revenue growth. However, nearly a third remain concerned about access to credit. 3) Small business owners are seeking larger loans to expand and innovate, but many struggle to get financing from traditional banks. Online lending is helping more entrepreneurs access capital and focus on growth.

1. Small Business
Lending Report
A behind-the-scenes look at how
American small business owners
approach financing in 2018

2. Nearly half of small businesses need additional
funding each year; however, since 2008,
it’s been a challenge for small business owners
to access financial capital.
Source: Federal Reserve Bank of Cleveland report

3. Demand for business loans increasing as small business
owners look to expand
Lendio’s third-annual list of Top 10 States for Small Business
Lending reveals:
● An increase in demand for loans over the previous year
● Higher average loan sizes per borrower
● Growth and innovation in online lending is transforming the funding
landscape

4. Key Findings:
● Utah and California tied at No. 1.
● Demand for loans increased year-over-year
in each of the top 10 states.
● In eight of the top states, the average loan
size per borrower increased by 60 percent
or more year-over-year.
The top 10 states for small business ranking is based on a
calculation of several key indicators, including approval rates
and loan sizes, from among thousands of Lendio’s customers
from April 2017 through March 2018. See the 2017 and 2016
results.

5. Key Findings Cont.:
● The states with the biggest percent
increase in demand for loans year-over-
year were Texas (119%), Illinois (101%),
Florida (95%) and Utah (81%).
● The states with the largest percent
increase in average loan size year-over-
year were Massachusetts (147%), New
Jersey (121%), Colorado (100%) and
California (91%).
● Utah, California, Washington, Texas and
Florida have ranked on the list three years
running.
● New Jersey, Massachusetts and Illinois
ranked among the top 10 states for the
first time.

6. “Lack of financing makes it hard for small business
owners to focus on the big picture. This list
showcases how online lending technology is giving
entrepreneurs the freedom to create, innovate and
succeed.
- Brock Blake, CEO and Founder of Lendio

7. Why are business owners seeking more growth
capital, and larger amounts at that?
50 percent of small
business owners feel
optimistic about the
national economy, up
from 29 percent in 2017.
Source: PNC Economic Outlook
01 02 0360 percent of small
business owners expect
their revenue to increase
in the year ahead.
Source: 2018 Bank of America Small
Business Owner Report
69 percent of small
business owners plan to
expand in the year
ahead.
Source: 2018 Bank of America Small
Business Owner Report

8. Economic optimism is running at an all-time high, yet
almost one-third of business owners are concerned
about access to credit.
Source: 2018 Bank of America Small Business Owner Report

9. “I’ve seen a number of my
clients struggle with
obtaining credit due to lack
of time in business, lower
credit scores, etc. It was a
very painful process for
them.”
-Brian Cairns, owner of
ProStrategix Consulting in New
York
“What I’m most concerned
about is missing out on even
more growth opportunity
because of our history of
self-financing and
bootstrapping.”
-Sam Eitzen, owner of The
SnapBar in California
“Banks don’t like offering loans for
fit-out [construction] of leased
spaces without a long track
record. We continually have
issues with getting any size loans
from banks for updates.”
-Steve Schaaf, owner of Tranquility
Salon and Spa in New Jersey

10. SMBs look
beyond traditional
lenders for
growth capital
Lack of startup or growth
financing makes it
impossible for
entrepreneurs to focus on
the big picture. Without
funds, there’s little
opportunity to create,
innovate or succeed.
The growth in loan size
and demand means
business owners are
finding ways to expand
and the means to dream a
little bigger.

11. To date, Lendio has helped small business owners
pump an estimated $3 billion back into the economy.

12. With the right capital boost, small business owners show just how mighty they are
“We didn’t seek out opportunities because we
didn’t have the production capacity. Getting
funding in place has helped us to really start
expanding our business. We hope to have a
larger national and potentially global brand in
the near future.”
-Michael Sanders, owner of Pudding on Smiles
“We got a small business loan for $125,000 in
April of last year, and that has made a huge
difference. These days, we are very measured
in our investments and product development. I
think the bone-dry early years made us wiser
faster.”
-Danielle Vincent, owner of Outlaw Soaps

13. ““In 2018, small business owners have access
to an ever-improving financial foundation
that was unheard of before the advent of
fintech. Talk about an economic game
changer.”
- Brock Blake, CEO and Founder of Lendio