Report: Providence 9th-best city for small businesses

ONLINE FUNDING PLATFORM Biz2Credit says Providence ranks as the No. 9 city in the United States for small businesses based on metrics it developed from examining the financials for 60,000 loan applications that were submitted in 2023. / PBN FILE PHOTO/PAMELA BHATIA

PROVIDENCE – The state’s capital was named the ninth-best city in the nation for small business in Biz2Credit’s 2024 annual Top 25 Small Business Cities in America ranking.

Providence jumped 11 spots after being ranked No. 20 in 2023.

Biz2Credit, an online business-funding platform, said it examined the financials in more than 60,000 applications for small-business loans and financing submitted in 2023 to determine the ranking. Factors such as the local business climate, rents, labor costs and local tax rates were also considered.

Last year’s top city, San Francisco, dropped to second place this year, while San Jose climbed to the top spot from No. 7 a year ago. Other cities in the top 10 were Colorado Springs, Colo. (No. 3, not ranked last year); Seattle (No. 4, No. 9 last year); Greater Bridgeport, Conn. (No. 5, not ranked last year); San Diego (No. 6, third last year); Portland (No. 7, No. 8 last year); New York City (No. 8, No. 4 last year); and Baltimore (No. 10, No. 14 last year).

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“Clearly, San Jose and San Franciso, which rank No. 1 and No. 2 [respectively] on our analysis, are still the hub of America’s tech industry. Non-tech firms are benefiting as a result of companies and individuals doing well; a high tide raises all the boats,” said Biz2Credit CEO Rohit Arora.

The report found Providence had the seventh-highest credit score at 664, a metric derived from the personal FICO credit score of business owners, according to Biz2Credit. Salt Lake City had the highest credit score at 672.

Overall, average credit scores for business owners increased to 652 in 2024 from 641 a year earlier. The weighted average revenue for small businesses increased to $618,000 in 2023 from $560,000 in 2022, according to the report.

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