Top Cities for Small Businesses in America

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A Biz2Credit Research Report On 2014s Best Small
Business Cities in America

• May 14th 2014
• Rohit Arora, CEO

Helping Small Businesses Grow
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Biz2Credit in a few words
Biz2Credit is an online marketplace that equips
small and medium size businesses with tools
needed to analyze their financial health and
equips banks with the tools to more efficiently
manage their small business lending process.
Proprietary technology streamlines the loan
application process and connects borrowers to
lenders using a patented credit algorithm.
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Biz2Credit in a few words
2012 - Entrepreneur.com Top Small Business
Finance Resource 2011 - Crains Top Entrepreneur

• Funded over 1 Billion to date
• Over 1,200 lenders on our platform, including 50
  micro-lenders
• Has direct reach to over 1.6 million small and
  medium sized business owners

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Small Businesses The Backbone of The American
Economy
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Small Businesses Facts

• Over half of Americas workers own or work for a
  Small Business
• Small Businesses have generated over 64 of new
  jobs in the last 15 years
• Small businesses create 2 out of every 3 jobs
  today
• Add greatly to the economic growth of the country
• From Farmers to Mechanics to Doctors Small
  Businesses are everywhere!
• Source U.S. Department of Housing and Urban
  Development

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Biz2Credit Study2014s Top Cities for Small
Businesses in America
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Small Businesses Facts

• For this study, Biz2Credit Analyzed over 12,000
  Small Businesses across America to determine the
  best cities for small businesses, women owned
  businesses and Minority owned businesses. Factors
  studied to determine the rankings include
• 250 Employees or Less
• Less than 10 million in Annual Revenues
• Annual Busines Revenues
• Business Credit Scores
• Debt-to-Income Ratio
• Age of Business
• Type of Business
• Business Owners Personal Credit Scores

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Results 2014s Top Cities for Small Business
After Analyzing over 100 cities, the results for
the top cities for Small Businesses
Rank Top 25 Metro areas with the highest applications in 2013 Average Annual Revenue Average Credit Score Average of Age in Months Average BizAnalyzer Score
1 San Jose-Sunnyvale-Santa Clara, CA 499,811 685 67.4 57.7
2 Detroit-Warren-Dearborn, MI 730,013 637 39.4 55.5
3 Denver-Aurora-Lakewood, CO 482,434 649 46.0 55.1
4 Los Angeles-Long Beach-Anaheim, CA 752,154 641 58.6 53.9
5 San Francisco-Oakland-Hayward, CA 274,164 637 51.9 53.7
6 Las Vegas-Henderson-Paradise, NV 497,677 649 39.4 53.6
7 New York-Newark-Jersey City, NY-NJ-PA 574,801 637 47.3 52.6
8 Atlanta-Sandy Springs-Roswell, GA 384,282 623 45.4 52.5
9 Washington-Arlington-Alexandria, DC-VA-MD-WV 224,982 629 34.9 52.5
10 Miami-Fort Lauderdale-West Palm Beach, FL 375,856 625 46.9 52.2

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Results 2014s Top Cities for Small Business
San Jose remains the center of innovation and
new business job creation in the
U.S. Surprisingly, Detroit-Dearborn scored
very well in large part because of the auto
industrys rebound and the growing technology
sector in the area. While revenue figures are
usually higher for New York-based companies, so
are the costs of operation. The minimum wage is
higher, and now Mayor DeBlasio has expanded paid
sick leave. This hinders small business
owners,
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While revenue figures are usually higher for New
York-based companies, so are the costs of
operation. The minimum wage is higher, and now
Mayor DeBlasio has expanded paid sick leave.
This hinders small business owners, When fixed
and marginal costs are high, it impacts cash flow
significantly. There is also some fallout still
from Hurricane Sandy and its impact on small
businesses. This, too, hurt New Yorks ranking.
- Biz2Credit CEO Rohit Arora,
"San Jose remains the center of innovation and
new business job creation in the U.S.,
Surprisingly, Detroit-Dearborn scored very well
in large part because of the auto industrys
rebound and the growing technology sector in the
area. - Biz2Credit CEO Rohit Arora,
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Biz2Credit Study2014s Top Cities for Minority
OwnedSmall Businesses
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Results 2014s Top Cities for Minority Owned SB
After Analyzing over 100 cities, the results for
the top cities for Small Businesses
Rank Top 25 Metro areas with the highest applications in 2013 Average Annual Revenue Average Credit Score Average of Age in Months Average BizAnalyzer Score
1 San Jose-Sunnyvale-Santa Clara, CA 446,395 665 69.6 56.8
2 Denver-Aurora-Lakewood, CO 734,761 640 56.8 54.3
3 San Diego-Carlsbad, CA 971,025 647 62.3 53.9
4 Riverside-San Bernardino-Ontario, CA 1,380,613 608 41.8 53.8
5 San Francisco-Oakland-Hayward, CA 390,510 627 68.1 52.7
6 Indianapolis-Carmel-Anderson, IN 610,646 620 50.7 52.6
7 Los Angeles-Long Beach-Anaheim, CA 827,148 638 47.1 52.4
8 New York-Newark-Jersey City, NY-NJ-PA 486,141 635 44.7 51.9
9 Atlanta-Sandy Springs-Roswell, GA 427,100 614 46.0 51.8
10 Miami-Fort Lauderdale-West Palm Beach, FL 417,819 620 43.7 51.6

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Results 2014s Top Cities for Minority Owned SB
"Centers of technological innovation are booming.
Cities like Portland and Jacksonville are taking
advantage of their slower pace, lower costs and
good standard of living offered to residents
While New York City is an appealing location
for entrepreneurs to start a business, the
reality is that high fixed and marginal costs
negatively impact the bottom line of small
business owners According to statistics from
the U.S. Census Bureau, African Americans (just
over 25) Hispanics (28.6) and Asians (12.7)
combine to comprise the majority of New York
Citys population. "San Jose is a hub for small
business, but people might not immediately expect
it to be a booming place for minority-owned
companies"
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While New York City is an appealing location for
entrepreneurs to start a business, the reality is
that high fixed and marginal costs negatively
impact the bottom line of small business owners,
Arora explained. According to statistics from
the U.S. Census Bureau, African Americans (just
over 25) Hispanics (28.6) and Asians (12.7)
combine to comprise the majority of New York
Citys population. - Biz2Credit CEO Rohit
Arora,
"San Jose is a hub for small business, but people
might not immediately expect it to be a booming
place for minority-owned companies," According to
U.S. Census Bureau statistics, Hispanics
represent nearly a third of the population in San
Jose, while Asians (non-Hispanic) represent just
over 30 percent of the population.
Surprisingly, Denver scored very well in the
study, largely because of the booming fresh
produce and organic food industry, which is
popular amongst minorities. - Biz2Credit CEO
Rohit Arora,
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Biz2Credit Study2014s Top Cities for Women
Owned Small Businesses
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Results 2014s Top Cities for Women Owned SB
After Analyzing over 100 cities, the results for
the top cities for Small Businesses
Rank Top 25 Metro areas with the highest applications in 2013 Average Annual Revenue Average Credit Score Average of Age in Months Average BizAnalyzer Score
1 Jacksonville, FL 1,395,927 576 32.6 45.2
2 Charlotte-Concord-Gastonia, NC-SC 1,146,263 591 46.6 52.3
3 Chicago-Naperville-Elgin, IL-IN-WI 1,076,557 621 40.4 49.5
4 Denver-Aurora-Lakewood, CO 1,011,458 638 62.0 54.6
5 Pittsburgh, PA 547,125 620 38.0 47.6
6 Atlanta-Sandy Springs-Roswell, GA 504,944 601 46.7 49.9
7 Los Angeles-Long Beach-Anaheim, CA 464,623 632 43.3 52.6
8 Las Vegas-Henderson-Paradise, NV 427,297 628 33.3 52.5
9 Dallas-Fort Worth-Arlington, TX 400,474 600 34.7 45.4
10 San Francisco-Oakland-Hayward, CA 395,720 633 60.8 50.1

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Results 2014s Top Cities for Women Owned SB
"Denver scored very well because of its thriving
technology sector, as well as its growing organic
food and tourism industries Baltimore ranked
surprisingly high in the study of women-owned
businesses because the city was not in the top 25
among cities nationally. Many companies in the
Baltimore-Washington corridor have gotten
Woman-Owned Business Certification, which helps
with federal contracts and other
advantages. .Midwestern cities like Milwaukee
are growing in the high-tech and medical
technology industries. High end IT startup
companies are beginning to emerge in this area.
Further, traditional manufacturing hubs are
evolving and supporting IT companies, and many of
them are women-owned.
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"Denver scored very well because of organic food,
and tourism, Baltimore ranked surprisingly high.
This is because there are many companies in the
Baltimore-Washington corridor have gotten
Woman-Owned Business certification, which helps
with federal contracts. For this reason,
Baltimore ranks much higher for women-owned
businesses than it does in the overall national
analysis conducted by Biz2Credit. - Biz2Credit
CEO Rohit Arora,
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The Small Business Lending Industry The
Financial Struggles Business Owners Face
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The Problem Small Businesses the Credit Crunch

• The 2008 Recession took a big toll on small
  business lending and the effects are still
• 19.1 Reduction in Small Business Lending since
  2008
• Loans to Midsize and Large companies saw a 12
  increase in the same period
• Recession hit small businesses had nowhere to go
  Rejected by Banks, Denied by the government
• Disconnect between commercial bankers and small
  businesses over Asset Valuation and Business
  understandings
• Lending to Big Businesses has gone up and
• to Small Businesses has gone down
• When you dont need money, you get offers. When
  you need money, you are denied

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Why Biz2Credit was Created
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To fix the fundamental problem in the market
today
SMALL BUSINESS OWNERS
BANKS OTHERLENDERS
LACK OF TRANSPARENCY

• How do I find good borrowers?
• How risky are they?
• How do I retain customers?
• How do I manage declines?
• Process too cumbersome

• What product is best for me?
• Where do I go?
• Am I getting the best rate?
• Process too cumbersome

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Biz2Credit is the solution
BANKS OTHERLENDERS
SMALL BUSINESS OWNERS
MARKETPLACE
Online quicker simpler lower risk
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Thank you
For questions of more information, please
Visit http//www.biz2credit.com/research-reports/
2014-best-small-business-cities-in-america Rohit
Arora CEO Phone [phone] Email
rohit.arora_at_biz2credit.com