Average Small Business Loan Amount
The average small business loan size was $83,348 in the first quarter of 2024, according to data from the federal Small Business Lending Survey.
Over the past few years, average loan amounts and approval rates have begun to stabilize after wild swings during the pandemic.
Average loan sizes and rates of approval
The average business loan amount dropped in the past year from about $109,668 in Q1 2023 to $83,348 in Q1 2024. This is based on the average amount approved. There may be some businesses that ultimately took out less than the amount approved on their applications. Meanwhile, the approval rate remained about the same, moving from 51.0% to 51.3%.
The approval rate has stayed mostly steady over the past couple of years, recovering from the wild swings it took during the pandemic. Between the second and third quarters of 2020, it shifted from 75.9% to 39.9%.
The average size of approved business loans has also steadied, falling from $711,442 in early 2020 down to $64,241 in late 2021. The past two years have seen smaller fluctuations, with average loan amounts ranging from $64,523 to $109,668.
| Period | Approval rate | Average loan size approved |
|---|---|---|
| 2024:Q1 | 51.3% | $83,348 |
| 2023:Q4 | 50.7% | $89,268 |
| 2023:Q3 | 52.8% | $74,998 |
| 2023:Q2 | 49.5% | $82,636 |
| 2023:Q1 | 51.0% | $109,668 |
| 2022:Q4 | 49.0% | $87,324 |
| 2022:Q3 | 49.3% | $64,523 |
| 2022:Q2 | 52.4% | $67,270 |
| 2022:Q1 | 51.9% | $65,998 |
| 2021:Q4 | 50.4% | $64,241 |
| 2021:Q3 | 51.3% | $97,339 |
| 2021:Q2 | 49.7% | $83,820 |
| 2021:Q1 | 53.1% | $121,839 |
| 2020:Q4 | 60.3% | $103,240 |
| 2020:Q3 | 39.9% | $103,195 |
| 2020:Q2 | 75.9% | $432,012 |
| 2020:Q1 | 52.8% | $711,442 |
| 2019:Q4 | 54.5% | $91,323 |
| 2019:Q3 | 55.0% | $112,180 |
| 2019:Q2 | 56.1% | $85,834 |
| 2019:Q1 | 55.8% | $80,286 |
How we sourced this
All data on average loan sizes is sourced from the annual Small Business Lending Survey put out by the Federal Reserve Bank of Kansas City, section C.2. There’s a PDF available to see a simplified version of the data.
The report contains information on the total number of applications received, the total dollar amount requested, the percentage of applications approved and the percentage of that dollar amount approved. We used that information to calculate the total and average amounts approved.
To see the unrounded numbers that we used in our calculations, download the Excel spreadsheet for the July 1, 2024 release from the bank’s website.
Small business loan demand
Every quarter since the beginning of 2022, more banks have identified a weaker demand for business loans than have identified a stronger one, suggesting that the demand for business loans has been dropping.
| City/suburb | Incidents per 1,000 drivers |
|---|---|
| Sterling Heights | 4.05 |
| Rochester Hills | 4.84 |
| Macomb Township | 4.85 |
| Pontiac | 4.91 |
| Flint | 5.08 |
How we sourced this data
All data on loan demand is sourced from the annual Small Business Lending Survey put out by the Federal Reserve Bank of Kansas City, section C.1. There’s a PDF available to see a simplified version of the data.The report contains information on whether lenders feel loan demand has been substantially stronger, moderately stronger, remained basically unchanged, moderately weaker or substantially weaker. We used that information to calculate the percentage of banks that felt demand was overall stronger or weaker.
To see the unrounded numbers that we used in our calculations, download the Excel spreadsheet for the July 1, 2024 release from the bank’s website.
Average business loan size by interest type
Average business loan interest rates change over time, depending on the market. Business owners can take advantage of loans with fixed or variable interest rates.
Fixed interest is one, static number that applies to a loan term. The benefit is that it’s set in stone at the time you sign the paperwork and will never increase, meaning your monthly loan payment is set.
Variable interest changes with the market over the loan term. They often start lower than fixed-rate loans and are best when market rates are falling.
Average size of fixed rate loans
The average size of fixed-rated loans has been declining since a post-pandemic boom in 2022, hitting $85,820 in the first quarter of 2024. Based on the outstanding dollar amount of new fixed-rate loans.
However, small business owners asked for financing more frequently over that same time period, with nearly 50% more new fixed-rate term loans reported in Q1 of 2024 compared to Q1 2023.
| 2024 Q1 | $85,820 |
|---|---|
| 2023 Q1 | $98,950 |
| 2022 Q1 | $121,451 |
| 2021 Q1 | $72,372 |
| 2020 Q1 | $97,951 |
| 2019 Q1 | $84,432 |
| 2018 Q1 | $90,685 |
How we sourced this data
All data on average fixed-rate loan sizes is sourced from the annual Small Business Lending Survey put out by the Federal Reserve Bank of Kansas City, section A.16. There’s a PDF available to see a simplified version of the data.
The report contains information on the total number of new fixed-rate business loans and the outstanding dollar amount of those loans, broken down by quarter. We used that information to calculate the average dollar amount of new fixed-rate loans, rounded to the nearest dollar.
To see the unrounded numbers that we used in our calculations, download the Excel spreadsheet for the July 1, 2024 release from the bank’s website.
Average size of variable rate loans
New variable-rate loans have, on average, been bigger than fixed-rate loans — but are also trending downward, dropping from $311,103 in the first quarter of 2022 to $209,439 in Q1 2023 and $195,312 in Q1 2024. Based on the outstanding dollar amount of new fixed-rate loans.
However, loans are still above pre-COVID levels, which suggests that this may just be a slow return to normalcy.
| 2024 Q1 | $195,312 |
|---|---|
| 2023 Q1 | $209,439 |
| 2022 Q1 | $311,103 |
| 2021 Q1 | $286,929 |
| 2020 Q1 | $173,698 |
| 2019 Q1 | $191,131 |
| 2018 Q1 | $134,532 |
How we sourced this data
All data on average variable-rate loan sizes is sourced from the annual Small Business Lending Survey put out by the Federal Reserve Bank of Kansas City, section A.19. There’s a PDF available to see a simplified version of the data.
The report contains information on the total number of new variable-rate business loans and the outstanding dollar amount of those loans, broken down by quarter. We used that information to calculate the average dollar amount of new variable-rate loans, rounded to the nearest dollar.
To see the unrounded numbers that we used in our calculations, download the Excel spreadsheet for the July 1, 2024 release from the bank’s website.
Average SBA loan amounts
In 2023, the average SBA loan amount across all SBA programs was $391,584.
Because SBA loan performance reports are grouped by year rather than quarter, it’s too early to get a full picture of 2024 trends. As of data released in March 2024, the average is sitting a little higher, at $458,584 — though that may change as the year progresses.
The Small Business Administration (SBA) provides and guarantees loans nationwide for independent, for-profit businesses that have fewer than 500 employees. Depending on need and approval, small business owners can borrow amounts from $500 to $5.5 million from the Small Business Administration (SBA).
| Year | SBA total $ approved | SBA number of loans approved | Average loan amount |
|---|---|---|---|
| 2024 incomplete | $18,447,451,624 | 40,227 | $458,584 |
| 2023 | $41,717,020,929 | 106,534 | $391,584 |
| 2022 | $164,866,919,628 | 314,083 | $524,915 |
| 2021 | $417,927,416,700 | 7,332,356 | $56,998 |
| 2020 | $804,582,300,366 | 9,231,185 | $87,159 |
| 2019 | $32,735,966,635 | 100,495 | $325,747 |
| 2018 | $40,584,672,822 | 206,592 | $196,448 |
| 2017 | $34,702,397,832 | 96,017 | $361,419 |
| 2016 | $33,333,955,197 | 95,362 | $349,552 |
| 2015 | $31,343,360,248 | 80,825 | $387,793 |
How we sourced this data
This data comes from the Gross Approval Amount by Program report and the Number of Approved Loans by Program report, both included as part of the SBA’s Loan Program Performance report.
These reports contain information on the total dollar amount of SBA loans across all programs each year and the total number of SBA loans approved across all programs each year. We used that information to calculate the average SBA loan amounts by year.
Frequently asked questions
Check out the types of business loans to see what matches your needs, and then shop around for the best small business loans.
When looking for a business loan, look at the total cost of borrowing — this includes the interest rate and any fees, like origination or prepayment fees. You’ll also want to consider the repayment term, how long it takes to get the funds and the lender’s reputation.
The average approved small business loan amount was $83,348 in the first quarter of 2024, according to data from the federal Small Business Lending Survey published by the Federal Reserve Bank of Kansas City.
Startup business loans from the SBA microloan program max out at $50,000, but private companies offer up to $5 million or more.
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