U.S.-based online lending platform Lendio announced last week the release of its SMB Economic Insights report for 2019’s second quarter. The latest report revealed that small business loan inquiries increased by 57% over the previous three-quarter average, indicating small business owners continued appetite for growth in the quarter. Meanwhile, the number of small business loans funded in the quarter grew by 13% over the previous three-quarter average.
“The SMB Economic Insights report, released following the close of each business quarter, provides a state-by-state summary of the impact of lending on small business health. Findings are based on information provided by more than 8,500 small business loan applications submitted through the Lendio platform in the last quarter.”
Speaking about the report, Brock Blake, CEO and founder of Lendio, stated:
“As a loan marketplace serving up a wide range of business financing options, Lendio has unique insight into small business health across the United States. Findings from this report, particularly the growth in loan inquiries, number of loans funded and the average loan amount, show that business owners are still optimistic and hungry for growth.”
Lendio also reported that additional key findings from the Q2 report (based on growth over the previous three-quarter average) include the following:
- The total amount funded to businesses across the U.S. grew by 21%.
- The average loan amount among small business borrowers increased 11%.
- The number of small business loan inquiries grew in all 50 states. The total number of loans funded went up in 36 states, and the total amount funded increased in 40 states.
- The number of business owners reporting working capital as the main use of funds grew by 15%. Funding payroll grew by 33%, and making equipment purchases grew by 14%.
- The average credit score of U.S. business owners held relatively steady in Q2, coming in at 667. Business owners in Washington D.C., Montana, Hawaii and Wyoming have the highest average credit scores in the nation.
- The top small business industries funded are construction (with an average of $17,701 per loan) and restaurants (with an average $18,821 loan).
