Lendio Study Finds Midwest States Lag Rest of U.S. in Small Business Funding

Lendio, the nation’s largest marketplace for business loans, today released a new report on the state of small business lending in the Midwest. According to the report, small businesses in the Midwest are the most underserved in the nation despite seeing the highest level of growth in funding in Q4 2019. The findings are based on data from over 35,000 small business borrowers across the U.S. in 2019. The lag in funding in the state could be attributed to the region’s lower-than-average credit scores and reported revenues as well as its higher-than-average number of derogatory credit marks. In 2019, small businesses in the Midwest had the lowest average credit score in the nation at 662, which is five points lower than the national average.