Top States and Cities in 2025 Small Business Lending

Written By Darin Manis

Top States and Cities in 2025 Small Business Lending

Using SBADNA Analytics data, we’re breaking down the numbers to reveal which regions are hot for SBA financing.

Top Project States: 2025 vs. 2024
The "2025 1H States" and "2024 1H States" tabs highlight year-over-year (YOY) changes in loan approvals, amounts, and other metrics across the top states. Here’s what’s shifted:

  • California (CA):

    • 2025: 5,117 loans, $2,470,720,000, average $426,773

    • 2024: 4,606 loans, $2,133,489,600, average $481,036

    • Change: Loans up 11.1% (511 more); amounts up 15.8% ($337.2M); average loan size down 11.3% ($54,263). Share rose from 12.70% to 13.22%.

    • Insight: California remains the top state, with more loans and dollars, but smaller average loans, suggesting broader access to financing.

  • Texas (TX):

    • 2025: 3,257 loans, $2,007,032,900, average $616,246

    • 2024: 2,946 loans, $1,771,326,200, average $612,832

    • Change: Loans up 10.6% (311 more); amounts up 13.3% ($235.7M); average loan size up 0.6% ($3,414). Share steady at ~10.7–10.5%.

    • Insight: Texas saw strong growth in loan volume and amounts, maintaining high average loans for larger projects.

  • Florida (FL):

    • 2025: 3,088 loans, $1,611,353,800, average $486,295

    • 2024: 3,201 loans, $1,481,293,100, average $472,564

    • Change: Loans down 3.5% (113 fewer); amounts up 8.8% ($130.1M); average loan size up 2.9% ($13,731). Share dropped from 8.82% to 8.62%.

    • Insight: Florida’s loan volume dipped, but higher loan sizes and amounts indicate bigger investments.

  • New York (NY):

    • 2025: 2,806 loans, $953,603,500, average $298,602

    • 2024: 2,671 loans, $778,579,800, average $283,095

    • Change: Loans up 5.1% (135 more); amounts up 22.5% ($175.0M); average loan size up 5.5% ($15,507). Share rose from 4.63% to 5.10%.

    • Insight: New York gained traction, with more loans and significantly higher amounts, reflecting growing demand.

  • Ohio (OH):

    • 2025: 1,852 loans, $637,810,700, average $399,591

    • 2024: 2,228 loans, $602,819,100, average $288,478

    • Change: Loans down 16.9% (376 fewer); amounts up 5.8% ($35.0M); average loan size up 38.5% ($111,113). Share dropped from 3.59% to 3.41%.

    • Insight: Ohio saw fewer loans but much larger average sizes, pointing to bigger projects per borrower.

Top Borrower Cities: 2025 vs. 2024
The "2025 1H Cities" and "2024 1H Cities" tabs show how lending shifted in key cities. Notable changes include:

  • Brooklyn, NY:

    • 2025: 387 loans, $146,026,000, average $309,869

    • 2024: 440 loans, $128,222,200, average $278,293

    • Change: Loans down 12.0% (53 fewer); amounts up 13.9% ($17.8M); average loan size up 11.3% ($31,576). Share steady at ~0.76–0.78%.

    • Insight: Brooklyn’s loan volume dropped, but larger loans boosted total funding.

  • Los Angeles, CA:

    • 2025: 365 loans, $173,713,300, average $414,029

    • 2024: 341 loans, $143,131,500, average $432,754

    • Change: Loans up 7.0% (24 more); amounts up 21.4% ($30.6M); average loan size down 4.3% ($18,725). Share rose from 0.85% to 0.93%.

    • Insight: Los Angeles saw growth in loans and amounts, with slightly smaller loans.

  • Houston, TX:

    • 2025: 360 loans, $219,891,100, average $523,453

    • 2024: 363 loans, $222,556,800, average $576,720

    • Change: Loans down 0.8% (3 fewer); amounts down 1.2% ($2.7M); average loan size down 9.2% ($53,267). Share dropped from 1.32% to 1.18%.

    • Insight: Houston’s activity remained stable, but smaller loans suggest more modest projects.

  • Miami, FL:

    • 2025: 344 loans, $119,169,200, average $296,162

    • 2024: 374 loans, $140,258,500, average $347,312

    • Change: Loans down 8.0% (30 fewer); amounts down 15.0% ($21.1M); average loan size down 14.7% ($51,150). Share dropped from 0.83% to 0.64%.

    • Insight: Miami saw declines across the board, indicating a pullback in lending activity.

  • New York, NY:

    • 2025: 285 loans, $108,261,500, average $331,606

    • 2024: 276 loans, $103,450,900, average $333,142

    • Change: Loans up 3.3% (9 more); amounts up 4.7% ($4.8M); average loan size down 0.5% ($1,536). Share steady at ~0.58–0.62%.

    • Insight: New York City held steady, with slight growth in loans and amounts.

Other Geographic Trends

  • Out-of-State vs. In-State Funding: Out-of-state lending (% $ OUT ST) increased in many states, e.g., California from 69.0% to 66.7% (less out-of-state lending), while Texas rose from 77.3% to 79.0%. This suggests mixed trends in cross-state lending.

  • Disbursed Loans and Amounts: Disbursements varied, with California up 15.8% in disbursed dollars ($659.4M vs. $1,693.2M), while Florida’s disbursements dropped 64.1% ($401.7M vs. $1,119.0M), reflecting cautious funding.

  • Spread (Interest Rate Spread): Most states saw slight increases, e.g., Florida from 3.10% to 2.96%, indicating stable but slightly higher lender margins.

Think Inside the LoanBox

Skip the confusion. Minimize risk. Maximize clarity. Think inside the LoanBox.

Darin Manis
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