Small Business’s Role in Rural America

August 20, 2024

Delaney Sexton
Contributing Editor

Small Business’s Role in Rural America

Small businesses in rural areas play an important role in both the economy of the area and the community. Nearly all businesses in rural areas are small, and they supply more than half of all jobs for employees in rural areas. The SBA Office of Advocacy’s Rural Areas Profile 2024 provides up-to-date data on small business activity in rural areas. Here are the statistics:

• There are 4.1 million rural small businesses which employ 7.5 million people.
• 97.3% of farms are family farms, and 88.1% are small family farms.
• Small family farms accounted for 18.7% of total farm production.
• In 2022, large banks issued $11.2 billion to rural businesses with revenues of $1 million or less.
• New lending to businesses through loans of $1 million or less was $27.5 billion.
• New loans to businesses through loans of $100,000 or less reached $10.3 billion.
• Large banks reported making $9.5 billion in farm loans to farms with revenues of $1 million or less during 2022.
• New lending to farms through loans of $100,000 or less was $4 billion.
• New loans to farms through loans of $500,000 or less was $14.4 billion.

Source:
SBA Office of Advocacy Rural Areas 2024 Small Business Profile