Vermont: The State with the Lowest Average Loan Amount
A recent study has revealed that Vermont businesses receive the lowest average loans in the US, at $254,815. This figure is 51% below the national average for business loans. Over the past four years, Vermont businesses were approved for a total of $213 million across 837 loans.
States with the Lowest Average Business Loans
| Rank | State | No. of Approved Loans | Total Loan Amount $ | Average Loan Amount $ |
| 1 |
Vermont |
754 | 213,279,786 | 254,815 |
| 2 |
Maine |
6452 | 463734,775 | 268,988 |
| 3 |
Ohio |
696 | 4,552,761,776 | 277,388 |
| 4 |
Hawaii |
560 | 177,152,105 | 316,343 |
| 5 |
Maryland |
4737 | 1,540,905,956 | 325,292 |
| 6 |
New Hampshire |
2072 | 676,024,614 | 326,267 |
| 7 |
Kentucky |
2580 | 898,336,428 | 348,192 |
| 8 |
West Virginia |
754 | 264,349,626 | 350,596 |
| 9 |
Massachusetts |
6452 | 2,331,264,294 | 361,324 |
| 10 |
Delaware |
696 | 270,491850 | 388,638 |
States with the Highest Average Business Loans
On the other end of the spectrum, Georgia businesses receive the highest average loans, amounting to $816,892. This figure is significantly higher compared to other states.
| Rank | State | No. of Approved Loans | Total Loan Amount $ | Average Loan Amount $ |
| 1 |
Georgia |
7,429 | 6,068,691,136 | 816,892 |
| 2 |
Texas |
16,920 | 13,654,486,487 | 807,003 |
| 3 |
California |
29,698 | 23,868,365,682 | 803,703 |
| 4 |
North Carolina |
5054 | 3,816,222,114 | 755,089 |
| 5 |
Arizona |
4916 | 3,465,571,854 | 704,958 |
| 6 |
Louisiana |
1572 | 1,077,552,343 | 685,466 |
| 7 |
Alaska |
481 | 326,199,500 | 678,169 |
| 8 |
Tennessee |
2516 | 1,677,941,083 | 666,908 |
| 9 |
Nevada |
2469 | 1,626,207,980 | 661,060 |
| 10 |
South Carolina |
2694 | 1,779,940,330 | 660,705 |
Study Insights
The study, conducted by CreditDonkey, examined data from the US Small Business Administration from 2020 to 2023. It reviewed 251,834 loans to determine average loan values across different states. The findings illustrate a clear disparity in loan amounts between states with the lowest and highest averages.
The analysis showed that states like Vermont and Maine, which have lower average loan amounts, might be managing their finances conservatively. Conversely, states such as Georgia and Texas, with higher average loans, may be experiencing greater financial expansion or facing more significant financial needs.
Expert Comment
“The variation in loan amounts across states can reflect different financial strategies and business conditions. While higher loan amounts can indicate a push for expansion, lower averages might suggest more cautious financial management.”
Conclusion
The study highlights the significant differences in business loan averages across the US, providing valuable insights for businesses and financial institutions alike. Vermont stands out for its notably lower average business loans, while Georgia leads with the highest. Understanding these trends can help businesses make informed decisions about their financial strategies and loan requirements.
