- Analysis of small business lending data finds that the average loan in 2020 came to $71,072
- Lending averages varied depending on the business, lender, and loan terms
- Fixed rate loans had a lower average amount than variable rate loans
Summary by Dirk Langeveld
The average small business taking out a loan in 2020 borrowed $71,072, according to an analysis by the small business resource AdvisorSmith.
AdvisorSmith looked at data from the Federal Reserve’s Small Business Lending Survey on loans to non-farm small businesses with under $5 million in annual sales. Averages varied considerably depending on the business, lender, and loan terms, with some loans averaging just $5,000 and others typically coming in at $2.2 million.
- 95 percent of loans had a fixed rate and a smaller average of $66,917
- Variable rate loans had an average of $150,647
- The average loan under the U.S. Small Business Administration’s 7(a) loan program was $567,599, with the SBA guaranteeing 73.5 percent on average
- Alternative lenders have been growing in popularity as a lending option, typically offering flexible terms but higher interest rates
