U.S.-based online lending platform Lendio announced on Monday its second regional report revealed a spike in business loan demands in the South Atlantic states. The report notably revealed that in the third quarter the region saw the highest percentage of growth in small business loan demand in the nation. The report also shows that for the fourth quarter in a row, South Atlantic business owners took on more business capital than those in any other region.
“The findings, based on loan application data submitted through Lendio’s online platform, show a 50% increase in loan inquiries, a 21% increase in total loan dollars funded and an 18% increase in the number of loans funded in the region over the previous three-quarter average. Of the eight states and one district the South Atlantic region, six are among the top ten in the nation for growth in small business loan demand in Q3: Delaware (No. 2), West Virginia (No. 3), Georgia (No. 5), D.C. (No. 7), Florida (No. 8) and Virginia (No. 9).”
The report’s other findings also revealed:
- Businesses in the South Atlantic region saw an 11% increase in annual revenue, the second-highest rate of growth in the nation.
- South Atlantic business owners’ personal incomes grew by 5%, with an average personal income of $93,998.
- South Atlantic business owners have the second-lowest average credit score in the nation. However, there is a wide range. Owners in Washington D.C. have the third-highest average credit score in the nation while those in West Virginia have the third-lowest.
Lendio further explained that from fourth-quarter 2018 to third-quarter 2019, the South Atlantic region had the highest percentage of female borrowers in the nation.
“While they’re taking on more loans, women still represent only two out of ten small business owners in the region. Borrowers in the South Atlantic region tend to be older as well. Only 12% of the business owners who took on loans in Q3 are 34 or younger, the lowest percentage in the nation.”
Brock Blake, CEO and founder of Lendio, went on to add:
“The South Atlantic states are among the most diverse in the nation when it comes to small business. From farms and manufacturing firms to hospitality businesses and tech companies, small businesses are a vital part of the region’s culture and economy. Access to capital is imperative to small business growth, and the increase in loan dollars funded in the region will have a measurable impact on local economies.”