The Best Places for Minority-Owned Businesses

• City summaries
• Full rankings
• Methodology

Johnny Travis was working at a San Francisco Bay Area financial firm in 2012 when the death of a friend made him question his vocation. “It made me think — any day could be my day,” Travis recalls. Since college, Travis had moonlighted by making T-shirts at home, and he decided to turn his passion into his profession by starting his own business.

“I thought, ‘If I’m going to be an entrepreneur, the time is now,’” says Travis, 33, who with business partner Herbert Gracia started FAZE Apparel. FAZE now has a store in San Francisco’s trendy Mission District and distributes its clothing through boutique stores across the U.S. and in Japan.

Travis was fortunate to start FAZE in his native San Francisco. A NerdWallet analysis of 178 metropolitan areas with populations of 250,000 or higher found that the Bay Area is home to three of the top 10 places to start a minority-owned business.

Minority entrepreneurs like Travis are the greatest force shaping the U.S. small-business landscape today. In the years after the recession that started in 2007, 2.2 million nonwhite Americans turned to entrepreneurship, according to government data released in December.

The growth of minority-owned businesses doesn’t just mirror broader demographic patterns — which predict non-Hispanic whites will become a minority in the U.S. by 2050 — but magnifies that trend: The number of minority small businesses nationwide grew 38% from 2007 through 2012, a rate more than triple the population growth of minorities, government data shows.

Via: NerdWallet

Key takeaways

NerdWallet’s top 10 cities for minority entrepreneurs were determined by factors such as business climate, health of the local economy and access to small-business loans. They all share one important attribute: The employment rate in each recovered more strongly than that of the rest of the nation in the last three years. Unemployment in the top 10 cities averaged 4.7% from 2013 through 2015, compared with 6.2% nationally. Another common element of our top 10 cities: All ranked in the top 25% in terms of SBA loan amount per 100,000 residents. SBA-backed loans provide low-cost financing for small-business owners.

Our analysis of top places to start a minority-owned business didn’t look only at concentrations of minority businesses. If it had, five states — California, Texas, Florida, New York and Georgia — would have dominated the list because they’re home to 59% of America’s minority-owned businesses. Instead, we looked at where the conditions are most favorable for minorities to start a business.

Through that lens, California still punches above its weight nationally, with six metro areas making the top 25; Utah, with its fast-growing Hispanic population, had three spots in the top 25. The rest of the list is as diverse as the nation itself. The places where conditions are most favorable to start a minority-owned business stretch from Fayetteville, Arkansas, (No. 2) to Anchorage, Alaska, (No. 22) and Honolulu, Hawaii, (No. 24). They include areas where minorities now collectively constitute the majority of the local population (top-ranked San Jose, California) and a metropolitan area that is more than 90% white, but where minority-owned businesses are making substantial gains (Cedar Rapids, Iowa, No. 3).

In 2005, Cedar Rapids business leaders founded Diversity Focus as a way to help attract more diverse talent to a community that was 95.5% white. Companies were having a hard time attracting and keeping minority employees, says Chad Simmons, CEO and president of Diversity Focus.

“People were coming to Cedar Rapids to work, but leaving because they couldn’t build a life,” Simmons says.

The population of the Cedar Rapids metro area is now 91.2% white, but the number of Small Business Administration loans to minority businesses there grew 111% from 2007 through 2012, NerdWallet analysis shows. A disastrous 2008 flood bolstered government-backed loans to area businesses, accounting for some of that increase.

In many ways, Cedar Rapids is a microcosm of the state of minority-owned businesses in America: fantastic gains from a small base. Such businesses now make up 29% of all U.S. firms, up from 22% in 2007, but still only account for 4% of all business revenue in the U.S., according to government data. Access to capital is a profound challenge. Only 1% of venture-capital funded startups were founded by black entrepreneurs, for example, according to 2010 research by CB Insights.

Best places for minority-owned businesses

1. San Jose-Sunnyvale-Santa Clara, California

If you want a glimpse at America’s demographic future, look at San Jose. In 2013, the metropolitan area’s minorities collectively eclipsed its white population for the first time — 48.3% white compared with 51.3% the previous year, according to Census Bureau projections.

The San Jose metro area’s top ranking was driven by minority median income — which, at $83,406 in 2014, was tops among all 174 communities surveyed. That figure also ranked seventh-highest nationally as a percentage of overall metropolitan annual household income.

2. Fayetteville-Springdale-Rogers, Arkansas-Missouri

This area, concentrated in northwest Arkansas, is home to the national headquarters of Walmart, Tyson Foods and J.B. Hunt Transport, and is one of the fastest-growing regions in the country. The area ranked highly in terms of growth for minority businesses and was 24th for SBA loans per 100,000 residents.

The Federal Reserve Bank of St. Louis says this about the impact of minorities on the “widespread growth” of the region: “Nearly 30% of residents in Springdale and in Rogers are Hispanic or Latino, about twice the national rate. More than 10% of the firms in each of these cities are Hispanic-owned.”

3. Cedar Rapids, Iowa

Cedar Rapids was spared the brunt of the economic downturn — its unemployment rate topped out at 6.5% in December 2009. “During the recession we had less of a fall, and a quicker recovery,” said Simmons, the city’s Diversity Focus CEO. “There was a lot of migration of people from Illinois and other harder-hit areas, and the majority of that growth was people of color.”

The rebuilding efforts after the 2008 floods that put 10 square miles of Cedar Rapids under water also significantly increased the number of SBA loans to the metro area. The area had the highest amount of SBA loans per 100,000 residents among our top 10, and 30.5% of the business loans given between 2007 and 2012 came in the third quarter of 2008, just after the June floods.

4. Seattle-Tacoma-Bellevue, Washington

The Seattle area had the eighth-highest minority median income at $57,889 and was in the top 10% of SBA loans per 100,000 residents. The area has established support networks for minority entrepreneurs, such as the Washington Minority Business Advisory Council, and is home to Boeing, Microsoft, Amazon and other global entities.

Economists and small-business groups will closely watch the effect of Seattle’s historic $15 minimum wage law as it rolls out over the next several years. Other communities and states — such as New York — are considering similar moves.

5. Madison, Wisconsin

Madison was another area spared from the full force of the credit crisis, with unemployment peaking at 6.2% in June 2009. Madison had one of the best overall unemployment rates in communities surveyed (No. 13).

Nearly 30% of the small businesses in Madison in 2012 were created in the past five years, according to the Kauffman Foundation, and the city saw a nearly 85% growth rate in minority-owned businesses during that time, the 11th-best figure among the places we examined. These firms also performed strongly, as Madison ranked fourth nationally in terms of average revenue per minority-owned business.

6. San Francisco-Oakland-Hayward, California

FAZE owner Travis says business has been good and is steadily growing for his shop. A Kickstarter campaign that netted $3,500 helped seed the early expansion of the company, “but other than that everything was bootstrapped,” he says. Strong minority median income levels helped boost the San Francisco area, which also has the 11th-highest amount of SBA loans per 100,000 residents.

The Bay Area also has world-class support for small businesses, such as Pacific Community Ventures, a nonprofit social enterprise that paired Travis with the president of another local company as a mentor. “If you can get a mentor or advisor, someone you can bounce ideas off of, you should do it,” Travis says.

7. Santa Rosa, California

Our third San Francisco Bay Area entry in the top 10, Santa Rosa is the seat of Sonoma County, the largest winemaking region in the U.S. Santa Rosa has the eighth-highest amount of SBA loans per 100,000 residents, and its minority median income ($52,172) is in the top 10% nationwide.

The area supports minority businesses through groups such as the Hispanic Chamber of Commerce of Sonoma County and the Sonoma County Economic Development Board.

8. Ogden-Clearfield, Utah

The Ogden-Clearfield area north of Salt Lake City is the first of two metropolitan regions in Utah on our top 10 list. The area ranked well for its low unemployment and high amount of SBA loans per 100,000 residents. Utah’s Hispanic community is the fasting-growing group in the state, accounting for nearly 78% of its population growth from 2000 to 2010, according to census data. Ogden, where roughly a third of the population is Hispanic, will open a local chapter of the Utah Hispanic Chamber of Commerce this month.

“Ten percent of the firms in Ogden are Hispanic,” chamber President Francisco Sotelo told the Standard-Examiner, an Ogden newspaper, in February. “There’s a great opportunity for us to increase that number.”

9. Salt Lake City, Utah

Salt Lake City has Utah’s fastest-growing minority population — accounting for 66% of local population growth in 2014 — and is the capital of a state that gets an A+ rating for small-business friendliness by Thumbtack, an online marketplace for small-business services. In our survey, Salt Lake City stacks up well, with the third-highest amount of SBA loans per 100,000 residents and the sixth-best unemployment rate.

Salt Lake City is home to chambers of commerce for Native American, Asian and Hispanic communities and Utah Diversity Connections, which seeks to “assist Utah businesses in building diverse workforces.”

10. Austin-Round Rock, Texas

The state capital of Texas, known for its lively music scene, also is a regional hub for tech companies, garnering the nickname “the Silicon Hills.” And in Round Rock resides the global headquarters of personal computing giant Dell. The area ranked highly for SBA loans per 100,000 people (No. 6) and the average size of those loans (No. 19).

The city provides resources for small and minority businesses, and is home to the Southwest Minority Supplier Development Council, which aims to “create an environment for minority enterprises to grow.”

Best places for minority-owned businesses: Full rankings

Scroll right and down to see the full table.

Rank	Metro area	Average revenue per minority-owned business (2012)	Percentage of minority-owned businesses with paid employees (2012)	Minority-owned businesses per 1,000 residents (2012)	Growth in minority-owned businesses, 2007-2012	SBA-guaranteed loan amount per 100,000 residents (2015)	Average size SBA-guaranteed loan (FY 2015)	Minority median household income (2014)	Minority median household income as a percentage of overall median household income (2014)	Local unemployment rate (December 2015)	Total score
1	San Jose-Sunnyvale-Santa Clara, CA	$317,979	17.9%	45.74	28.1%	$12,722,174	$642,354	$83,406	89.7%	3.8%	61.91
2	Fayetteville-Springdale-Rogers, AR-MO	$314,103	11.0%	11.28	64.1%	$13,296,759	$600,710	$41,496	85.3%	3.2%	61.65
3	Cedar Rapids, IA	$243,511	13.3%	3.79	111.4%	$15,263,685	$604,602	$39,087	66.2%	3.6%	61.61
4	Seattle-Tacoma-Bellevue, WA	$736,704	21.5%	18.84	30.2%	$14,252,064	$486,985	$57,889	83.9%	5.0%	60.06
5	Madison, WI	$343,476	16.0%	7.84	84.8%	$11,599,970	$297,366	$38,531	62.9%	3.1%	59.50
6	San Francisco-Oakland-Hayward, CA	$247,248	16.0%	44.48	28.9%	$16,279,372	$605,898	$67,776	84.7%	3.9%	59.24
7	Santa Rosa, CA	$223,911	18.1%	18.98	25.7%	$18,141,992	$524,826	$52,172	81.8%	4.2%	57.07
8	Ogden-Clearfield, UT	$297,799	15.2%	7.10	40.5%	$13,698,767	$408,650	$45,084	71.1%	3.1%	56.49
9	Salt Lake City, UT	$166,517	14.0%	11.94	53.1%	$22,160,775	$454,394	$44,729	72.7%	2.8%	55.88
10	Austin-Round Rock, TX	$154,249	11.4%	30.21	47.9%	$18,736,807	$639,077	$47,298	76.4%	3.1%	55.56
11	Boulder, CO	$195,582	16.2%	13.72	40.9%	$19,588,912	$369,004	$44,868	64.6%	2.6%	55.17
12	Provo-Orem, UT	$126,890	10.6%	8.01	75.1%	$18,255,455	$369,656	$44,937	74.1%	2.5%	54.58
13	Los Angeles-Long Beach-Anaheim, CA	$225,779	12.6%	60.38	34.8%	$18,864,659	$575,257	$50,450	83.6%	5.4%	54.16
14	Spokane-Spokane Valley, WA	$231,968	23.3%	6.36	87.4%	$10,803,365	$360,195	$36,161	73.2%	6.7%	52.78
15	Kalamazoo-Portage, MI	$269,485	12.1%	11.27	77.0%	$10,531,808	$374,206	$30,994	66.8%	3.5%	52.51
16	Trenton, NJ	$293,931	18.2%	23.31	29.0%	$7,365,192	$336,004	$62,559	84.4%	3.7%	52.32
17	Bridgeport-Stamford-Norwalk, CT	$126,758	10.4%	23.19	43.5%	$25,449,602	$1,423,677	$53,611	64.5%	4.8%	51.76
18	Springfield, MO	$277,987	21.0%	5.15	28.9%	$10,942,171	$276,494	$34,175	79.7%	3.4%	51.62
19	Minneapolis-St. Paul-Bloomington, MN-WI	$172,342	11.6%	12.41	53.6%	$16,285,578	$420,306	$45,432	66.8%	3.1%	51.32
20	Green Bay, WI	$312,936	11.7%	3.80	44.0%	$10,899,732	$423,354	$38,068	71.8%	3.8%	51.16
21	San Luis Obispo-Paso Robles-Arroyo Grande, CA	$163,600	15.5%	18.33	28.2%	$23,582,412	$445,926	$48,205	81.1%	4.5%	50.66
22	Anchorage, AK	$204,399	16.7%	16.20	22.7%	$14,677,147	$653,835	$56,545	74.0%	5.6%	50.52
23	Denver-Aurora-Lakewood, CO	$165,480	11.9%	21.38	52.4%	$15,216,799	$396,713	$46,081	71.8%	3.1%	50.36
24	Urban Honolulu, HI	$313,941	18.0%	57.29	12.8%	$6,092,786	$108,085	$71,434	97.1%	2.7%	49.58
25	Santa Cruz-Watsonville, CA	$216,387	15.8%	23.12	22.9%	$17,953,840	$657,167	$51,183	76.5%	8.5%	49.43
26	Oxnard-Thousand Oaks-Ventura, CA	$213,641	15.1%	30.58	30.9%	$12,563,431	$460,543	$65,076	84.1%	5.4%	49.12
27	San Diego-Carlsbad, CA	$206,966	13.9%	34.33	28.3%	$13,297,423	$451,735	$54,877	85.8%	4.7%	48.86
28	Boise City, ID	$120,803	17.7%	8.46	54.1%	$15,182,922	$295,174	$38,245	75.3%	3.7%	48.28
29	Portland-Vancouver-Hillsboro, OR-WA	$208,848	20.5%	13.25	35.6%	$10,045,430	$340,117	$47,552	80.8%	4.7%	48.11
30	Tulsa, OK	$226,267	14.2%	18.52	38.3%	$9,614,309	$487,903	$39,604	80.4%	3.9%	47.85
31	Manchester-Nashua, NH	$213,910	17.8%	7.02	33.0%	$7,859,157	$201,623	$57,796	81.5%	2.8%	47.84
32	Bremerton-Silverdale, WA	$308,832	27.4%	7.74	2.1%	$7,070,627	$484,651	$52,920	84.7%	5.5%	47.81
33	Dallas-Fort Worth-Arlington, TX	$150,315	9.2%	39.87	53.6%	$13,317,548	$508,359	$45,742	77.3%	3.7%	47.45
34	Cincinnati, OH-KY-IN	$260,257	11.0%	10.46	51.7%	$11,341,261	$366,322	$36,874	66.8%	4.3%	47.14
35	Fort Collins, CO	$128,120	13.7%	10.22	38.1%	$13,762,776	$400,580	$45,823	77.9%	2.8%	47.07
36	North Port-Sarasota-Bradenton, FL	$141,584	12.5%	17.41	49.1%	$13,235,144	$625,239	$37,702	75.6%	4.4%	47.06
37	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	$169,196	14.0%	17.92	32.1%	$12,416,133	$663,886	$42,634	68.6%	4.1%	46.97
38	Charlotte-Concord-Gastonia, NC-SC	$131,768	9.2%	30.21	77.6%	$10,817,751	$656,177	$40,073	76.2%	4.9%	46.95
39	Fort Wayne, IN	$212,792	12.3%	11.40	115.7%	$8,735,442	$290,284	$32,397	65.3%	4.4%	46.94
40	Portland-South Portland, ME	$171,240	16.5%	4.12	38.8%	$11,750,777	$327,497	$40,396	69.6%	2.8%	46.87
41	Chattanooga, TN-GA	$422,041	17.7%	10.50	11.0%	$8,963,522	$602,121	$33,039	71.5%	5.2%	46.69
42	Indianapolis-Carmel-Anderson, IN	$192,771	10.1%	14.97	67.9%	$12,113,089	$360,997	$35,274	67.3%	4.1%	46.28
43	Laredo, TX	$227,822	11.4%	102.40	67.4%	$6,175,758	$291,351	$38,002	98.2%	4.5%	45.95
44	Sacramento-Roseville-Arden-Arcade, CA	$186,945	14.8%	25.65	25.2%	$13,639,633	$491,345	$49,114	82.6%	5.5%	45.91
45	Phoenix-Mesa-Scottsdale, AZ	$137,130	10.0%	20.77	64.7%	$11,943,133	$522,743	$42,304	79.4%	4.7%	45.86
46	Milwaukee-Waukesha-West Allis, WI	$183,739	11.7%	15.04	68.7%	$12,832,133	$342,782	$34,255	63.9%	4.5%	45.85
47	Houston-The Woodlands-Sugar Land, TX	$171,988	8.9%	54.17	50.0%	$11,964,588	$503,937	$47,070	80.2%	4.6%	45.53
48	Nashville-Davidson-Murfreesboro-Franklin, TN	$171,780	10.9%	16.22	41.2%	$9,734,715	$742,118	$38,820	73.5%	4.2%	45.40
49	Washington-Arlington-Alexandria, DC-VA-MD-WV	$191,821	12.1%	44.74	28.5%	$7,576,772	$545,119	$72,816	79.4%	3.8%	45.14
50	Boston-Cambridge-Newton, MA-NH	$198,852	14.4%	15.43	38.5%	$11,583,061	$270,574	$50,658	68.0%	4.1%	44.95
51	New York-Newark-Jersey City, NY-NJ-PA	$167,947	13.1%	45.82	33.6%	$10,360,827	$575,877	$49,294	73.7%	4.4%	44.67
52	Myrtle Beach-Conway-North Myrtle Beach, SC-NC	$181,432	13.4%	18.37	114.4%	$6,657,563	$659,410	$31,128	71.3%	7.1%	44.40
53	Norwich-New London, CT	$125,452	15.3%	9.20	48.4%	$9,165,362	$678,908	$48,243	72.3%	5.4%	44.10
54	Kansas City, MO-KS	$173,770	13.3%	12.36	36.1%	$10,801,908	$473,075	$40,373	70.8%	3.8%	44.03
55	Wichita, KS	$192,304	15.4%	11.12	49.6%	$6,331,366	$452,511	$37,684	73.8%	4.0%	44.02
56	Omaha-Council Bluffs, NE-IA	$149,390	9.4%	10.43	76.7%	$8,436,349	$341,367	$38,308	66.8%	3.0%	43.91
57	Salisbury, MD-DE	$130,824	14.3%	38.06	221.3%	$8,765,699	$548,744	$38,154	72.0%	6.9%	43.82
58	Oklahoma City, OK	$175,983	12.4%	20.95	57.6%	$6,656,551	$367,668	$38,482	75.5%	3.3%	43.41
59	Des Moines-West Des Moines, IA	$153,783	11.1%	8.56	81.9%	$5,450,257	$251,538	$44,415	72.1%	3.2%	43.33
60	Deltona-Daytona Beach-Ormond Beach, FL	$109,904	13.0%	23.97	90.6%	$6,823,480	$485,624	$33,961	79.8%	5.0%	43.32
61	Eugene, OR	$140,241	20.3%	7.85	42.0%	$9,083,616	$424,018	$36,884	84.4%	5.3%	43.29
62	Atlanta-Sandy Springs-Roswell, GA	$108,367	8.0%	50.22	41.4%	$15,555,928	$598,860	$44,397	78.4%	4.9%	43.21
63	Reno, NV	$176,989	16.7%	13.94	29.3%	$11,937,435	$417,732	$41,291	77.8%	5.5%	43.00
64	Raleigh, NC	$132,785	11.2%	24.49	40.6%	$10,470,208	$598,805	$47,026	74.9%	4.4%	42.90
65	Kingsport-Bristol-Bristol, TN-VA	$402,650	26.2%	2.98	40.7%	$1,369,203	$248,712	$30,509	77.9%	5.1%	42.83
66	Chicago-Naperville-Elgin, IL-IN-WI	$166,088	11.3%	30.98	38.9%	$11,668,066	$548,609	$46,941	76.3%	5.7%	42.55
67	Riverside-San Bernardino-Ontario, CA	$147,786	9.3%	43.46	39.2%	$11,769,536	$556,522	$50,559	91.3%	5.9%	42.48
68	Kennewick-Richland, WA	$239,703	21.9%	11.26	21.6%	$11,215,219	$393,361	$41,751	70.2%	7.8%	42.29
69	Pittsburgh, PA	$236,267	14.1%	6.36	29.5%	$8,373,384	$408,080	$35,732	68.9%	4.3%	42.18
70	Modesto, CA	$227,803	13.2%	25.90	52.4%	$7,469,998	$488,159	$42,923	86.6%	9.1%	42.10
71	Killeen-Temple, TX	$104,610	10.6%	18.13	66.1%	$5,319,117	$600,754	$44,717	88.3%	4.4%	41.96
72	San Antonio-New Braunfels, TX	$174,209	9.5%	44.95	41.5%	$7,493,420	$423,723	$43,851	83.1%	3.5%	41.72
73	Salinas, CA	$162,297	15.8%	26.69	11.8%	$12,293,335	$705,915	$51,197	87.4%	10.4%	41.71
74	Dayton, OH	$220,724	11.8%	10.55	31.2%	$12,219,794	$286,293	$33,859	71.8%	4.5%	41.56
75	Las Vegas-Henderson-Paradise, NV	$161,451	9.5%	32.01	65.5%	$8,998,389	$409,757	$45,447	87.3%	6.2%	41.51
76	Lincoln, NE	$194,067	12.7%	7.16	38.0%	$8,204,754	$249,895	$34,489	66.0%	2.3%	41.42
77	Lexington-Fayette, KY	$253,247	16.1%	9.21	44.6%	$4,922,117	$226,885	$33,408	66.8%	4.0%	41.37
78	Jacksonville, FL	$134,993	10.1%	25.00	51.7%	$9,898,045	$471,350	$40,978	78.7%	4.5%	41.37
79	Grand Rapids-Wyoming, MI	$161,974	10.3%	12.39	59.9%	$9,254,007	$195,017	$35,992	67.7%	2.8%	41.31
80	Ann Arbor, MI	$195,685	9.2%	17.31	30.0%	$7,284,054	$365,716	$46,576	76.6%	2.6%	41.26
81	Lafayette, LA	$103,198	6.5%	40.82	121.3%	$8,928,568	$673,833	$32,330	68.5%	5.4%	41.21
82	Reading, PA	$221,878	8.6%	11.33	65.2%	$6,605,797	$401,221	$30,527	54.7%	3.7%	41.09
83	Harrisburg-Carlisle, PA	$194,345	19.3%	9.16	34.4%	$3,757,894	$274,501	$40,945	71.3%	3.2%	41.04
84	Santa Maria-Santa Barbara, CA	$209,407	16.9%	24.40	23.4%	$7,128,755	$394,417	$50,083	79.0%	5.5%	40.95
85	Vallejo-Fairfield, CA	$195,058	13.9%	27.04	10.7%	$7,690,834	$456,710	$61,612	91.5%	5.6%	40.35
86	Huntsville, AL	$283,581	11.2%	17.86	39.9%	$5,056,738	$290,187	$40,848	73.1%	5.1%	40.04
87	Richmond, VA	$132,807	11.8%	21.65	35.6%	$7,755,462	$531,705	$45,932	77.0%	4.1%	39.93
88	Tampa-St. Petersburg-Clearwater, FL	$113,072	10.7%	29.62	42.0%	$9,621,918	$509,932	$39,348	84.2%	4.4%	39.82
89	Peoria, IL	$202,365	16.4%	7.03	48.5%	$6,833,245	$481,163	$38,689	70.7%	7.0%	39.82
90	Atlantic City-Hammonton, NJ	$150,368	19.8%	18.11	32.2%	$9,014,910	$551,562	$42,023	77.3%	7.3%	39.72
91	Savannah, GA	$113,889	9.9%	25.93	13.3%	$14,167,421	$752,459	$38,406	76.0%	5.0%	39.68
92	Hagerstown-Martinsburg, MD-WV	$151,501	15.6%	7.04	30.2%	$3,001,128	$591,538	$48,007	85.9%	4.6%	39.43
93	Allentown-Bethlehem-Easton, PA-NJ	$176,896	14.2%	12.60	46.9%	$4,360,274	$330,525	$43,130	73.5%	4.0%	39.41
94	Miami-Fort Lauderdale-West Palm Beach, FL	$150,508	9.9%	100.99	32.0%	$9,951,969	$484,609	$42,019	86.8%	5.0%	39.26
95	Colorado Springs, CO	$147,495	12.2%	13.33	35.0%	$8,759,801	$342,744	$44,544	77.2%	4.0%	39.18
96	Bakersfield, CA	$183,790	10.9%	31.71	37.1%	$9,500,997	$622,083	$41,607	85.7%	10.2%	39.06
97	Orlando-Kissimmee-Sanford, FL	$125,155	9.1%	48.08	51.3%	$8,082,130	$448,817	$40,123	82.6%	4.3%	39.01
98	Asheville, NC	$150,613	14.3%	7.72	45.0%	$6,884,309	$387,313	$32,949	73.5%	4.2%	38.80
99	Youngstown-Warren-Boardman, OH-PA	$300,369	11.4%	8.55	77.6%	$5,000,680	$190,211	$25,765	60.6%	6.9%	38.75
100	Waco, TX	$92,117	13.3%	16.72	46.0%	$7,345,097	$555,724	$31,900	76.2%	3.8%	38.66
101	Corpus Christi, TX	$124,953	10.9%	43.42	35.0%	$8,851,205	$545,444	$42,912	86.9%	5.2%	38.57
102	Greenville-Anderson-Mauldin, SC	$118,364	10.7%	17.95	66.8%	$6,492,833	$511,427	$32,103	70.7%	4.6%	38.52
103	Columbia, SC	$136,648	8.2%	22.24	47.7%	$6,666,947	$679,421	$37,299	75.8%	4.9%	38.16
104	Akron, OH	$198,822	9.5%	10.46	56.7%	$9,072,441	$221,461	$33,058	65.1%	4.8%	38.04
105	Canton-Massillon, OH	$234,840	12.0%	6.02	51.5%	$6,891,948	$161,732	$32,580	70.5%	5.2%	37.85
106	Salem, OR	$162,631	19.9%	10.32	28.7%	$5,832,225	$367,441	$38,723	80.0%	5.6%	37.77
107	Huntington-Ashland, WV-KY-OH	$275,361	25.9%	2.76	21.1%	$2,198,846	$267,170	$31,461	74.1%	5.7%	37.31
108	Visalia-Porterville, CA	$238,480	12.8%	24.95	32.7%	$6,915,572	$458,775	$36,305	84.7%	12.2%	37.26
109	Columbus, OH	$125,636	8.6%	16.73	54.0%	$9,846,878	$213,864	$40,363	73.2%	3.9%	37.26
110	Beaumont-Port Arthur, TX	$151,802	11.0%	24.69	34.8%	$9,096,311	$669,391	$34,642	77.2%	6.5%	37.24
111	Albany-Schenectady-Troy, NY	$161,475	19.6%	8.22	22.9%	$6,627,842	$239,798	$40,480	65.5%	4.0%	37.23
112	Fort Smith, AR-OK	$115,092	10.0%	12.01	55.3%	$4,280,940	$666,861	$33,220	85.5%	5.1%	37.20
113	Fresno, CA	$162,344	12.5%	33.22	43.6%	$9,395,549	$506,529	$37,036	81.9%	10.3%	37.11
114	Toledo, OH	$175,350	10.1%	9.81	51.9%	$8,551,672	$315,555	$30,154	67.3%	4.8%	37.02
115	Winston-Salem, NC	$101,828	10.0%	19.88	62.5%	$5,475,083	$572,274	$33,033	74.1%	4.9%	36.37
116	Knoxville, TN	$223,043	13.3%	8.19	27.0%	$4,667,756	$412,204	$32,720	72.9%	4.9%	36.37
117	Roanoke, VA	$138,647	16.6%	9.50	35.6%	$2,241,537	$464,647	$36,674	73.3%	3.8%	36.29
118	St. Louis, MO-IL	$135,998	12.5%	15.05	50.8%	$5,495,681	$359,240	$37,664	68.5%	4.3%	36.19
119	Hartford-West Hartford-East Hartford, CT	$183,374	13.5%	13.87	38.6%	$6,610,139	$269,543	$43,981	63.8%	5.0%	36.16
120	Charleston-North Charleston, SC	$130,351	9.5%	19.59	43.9%	$7,756,227	$515,073	$35,160	67.0%	4.5%	36.10
121	Naples-Immokalee-Marco Island, FL	$139,406	11.3%	33.83	41.8%	$6,636,121	$403,565	$39,569	70.3%	4.4%	36.03
122	Buffalo-Cheektowaga-Niagara Falls, NY	$203,563	15.6%	7.82	47.9%	$6,104,281	$205,710	$28,851	56.9%	4.9%	36.03
123	Stockton-Lodi, CA	$161,086	12.6%	29.80	27.0%	$8,625,205	$530,412	$46,379	87.1%	8.8%	35.99
124	Louisville/Jefferson County, KY-IN	$176,553	11.5%	10.59	33.6%	$6,619,841	$398,879	$34,900	69.3%	4.5%	35.85
125	Baltimore-Columbia-Towson, MD	$151,581	11.6%	27.90	26.3%	$6,322,113	$348,843	$54,941	78.1%	4.8%	35.69
126	Worcester, MA-CT	$197,736	12.3%	10.37	43.1%	$5,207,241	$199,803	$43,274	67.0%	4.8%	35.51
127	Lakeland-Winter Haven, FL	$133,111	8.4%	25.30	49.8%	$5,244,224	$530,718	$36,305	84.3%	5.3%	35.23
128	South Bend-Mishawaka, IN-MI	$164,742	8.6%	11.70	57.0%	$5,863,532	$381,629	$30,236	67.1%	4.7%	35.16
129	New Haven-Milford, CT	$175,042	13.2%	15.69	38.5%	$5,379,425	$320,223	$40,633	65.9%	4.9%	35.13
130	Palm Bay-Melbourne-Titusville, FL	$118,178	11.5%	16.38	33.5%	$7,510,344	$396,381	$41,258	85.1%	5.1%	34.90
131	Providence-Warwick, RI-MA	$149,592	11.9%	11.37	54.7%	$7,495,102	$233,033	$34,755	61.8%	4.9%	34.84
132	Rochester, NY	$176,754	13.5%	10.29	38.5%	$7,891,856	$203,903	$31,910	60.5%	4.6%	34.70
133	Albuquerque, NM	$182,221	13.1%	28.91	23.1%	$5,893,562	$392,527	$40,154	82.2%	5.7%	34.67
134	Lancaster, PA	$112,955	12.3%	6.86	40.5%	$5,313,995	$358,926	$35,955	62.9%	3.0%	34.55
135	Cape Coral-Fort Myers, FL	$83,583	9.0%	28.37	40.3%	$8,683,291	$493,237	$35,726	74.6%	4.3%	34.46
136	New Orleans-Metairie, LA	$92,443	6.4%	41.06	63.2%	$6,771,142	$497,269	$34,311	72.4%	4.7%	34.32
137	Clarksville, TN-KY	$131,190	14.4%	10.73	45.7%	$3,111,383	$366,265	$40,006	85.8%	5.7%	33.88
138	Virginia Beach-Norfolk-Newport News, VA-NC	$128,969	11.4%	22.02	38.2%	$3,171,951	$384,689	$46,916	79.2%	4.5%	33.63
139	Evansville, IN-KY	$154,385	17.0%	3.67	6.8%	$5,693,699	$396,598	$33,661	71.0%	4.1%	33.50
140	Tucson, AZ	$79,632	8.7%	25.46	67.6%	$6,155,422	$334,056	$36,599	79.2%	5.0%	33.45
141	Little Rock-North Little Rock-Conway, AR	$158,665	10.9%	16.29	36.6%	$4,201,959	$362,912	$34,339	69.8%	4.0%	33.45
142	Shreveport-Bossier City, LA	$81,483	6.2%	29.13	88.1%	$4,214,527	$521,319	$30,319	69.3%	5.5%	33.31
143	Cleveland-Elyria, OH	$118,432	9.4%	16.66	54.8%	$7,939,124	$183,602	$31,946	64.5%	3.9%	33.19
144	Rockford, IL	$141,035	8.9%	16.02	68.9%	$7,360,005	$314,419	$36,513	73.7%	7.2%	33.09
145	Lubbock, TX	$106,994	8.3%	19.28	27.5%	$7,412,803	$362,836	$35,345	78.0%	3.1%	33.06
146	Detroit-Warren-Dearborn, MI	$143,234	7.2%	25.27	47.9%	$8,688,117	$231,934	$39,278	75.1%	5.4%	32.87
147	York-Hanover, PA	$162,473	12.2%	5.47	22.3%	$4,506,588	$308,456	$39,010	66.2%	3.5%	32.82
148	Spartanburg, SC	$116,387	9.3%	13.22	48.2%	$3,965,596	$571,509	$31,520	74.0%	5.0%	32.79
149	Lynchburg, VA	$117,859	15.6%	9.87	36.3%	$917,515	$468,740	$35,114	74.8%	4.3%	32.61
150	Gainesville, FL	$88,434	13.6%	18.49	28.1%	$7,268,810	$424,604	$29,914	71.3%	4.1%	32.50
151	Pensacola-Ferry Pass-Brent, FL	$96,602	10.0%	15.37	43.3%	$6,093,213	$454,376	$35,604	72.3%	4.7%	32.46
152	Durham-Chapel Hill, NC	$118,535	10.6%	24.18	24.1%	$6,878,621	$410,411	$40,049	75.7%	4.5%	32.39
153	Greensboro-High Point, NC	$119,172	9.7%	22.72	32.0%	$6,236,414	$546,263	$33,887	77.6%	5.3%	32.33
154	Gulfport-Biloxi-Pascagoula, MS	$93,005	6.2%	33.20	178.8%	$5,543,206	$488,540	$33,671	75.1%	7.3%	32.32
155	Memphis, TN-MS-AR	$72,994	4.1%	47.41	86.3%	$4,212,110	$592,805	$35,114	73.7%	6.1%	32.30
156	Lansing-East Lansing, MI	$88,795	9.5%	11.62	34.7%	$7,145,243	$264,897	$35,609	71.0%	3.2%	31.38
157	El Paso, TX	$137,669	10.6%	67.84	32.2%	$4,095,727	$287,119	$36,399	89.4%	4.8%	31.29
158	Merced, CA	$131,275	10.4%	26.96	46.7%	$5,154,295	$421,378	$37,838	87.9%	11.9%	30.66
159	Montgomery, AL	$141,279	6.5%	30.33	9.0%	$6,755,733	$768,158	$34,924	74.3%	5.6%	30.63
160	Brownsville-Harlingen, TX	$148,962	8.9%	73.31	52.7%	$3,948,755	$292,704	$31,050	93.0%	6.9%	29.74
161	Tallahassee, FL	$83,507	10.0%	22.99	20.8%	$3,145,536	$733,494	$32,970	72.7%	4.5%	29.42
162	Baton Rouge, LA	$85,983	5.7%	33.26	46.1%	$3,545,965	$473,651	$37,993	73.3%	4.2%	29.29
163	Hickory-Lenoir-Morganton, NC	$106,972	11.9%	6.88	12.5%	$5,644,536	$622,500	$29,864	73.2%	5.3%	29.20
164	Syracuse, NY	$106,220	11.4%	7.51	29.7%	$7,804,650	$302,253	$32,311	60.7%	4.8%	29.00
165	Augusta-Richmond County, GA-SC	$71,467	7.4%	27.08	40.8%	$5,425,045	$578,339	$35,301	76.5%	5.7%	28.74
166	McAllen-Edinburg-Mission, TX	$122,096	7.8%	94.03	55.6%	$4,345,927	$302,134	$32,854	94.0%	7.8%	27.76
167	Ocala, FL	$119,155	10.0%	18.53	19.8%	$4,611,809	$454,088	$32,038	81.4%	5.6%	27.48
168	Jackson, MS	$56,624	5.2%	38.40	57.6%	$7,358,756	$384,661	$33,353	73.5%	6.0%	27.18
169	Erie, PA	$126,206	14.7%	4.52	24.7%	$2,854,190	$285,554	$24,722	54.1%	4.5%	25.57
170	Columbus, GA-AL	$41,138	4.1%	39.74	34.2%	$6,535,706	$650,119	$35,195	83.2%	6.4%	25.39
171	Wilmington, NC	$83,707	11.8%	9.76	-5.3%	$8,861,958	$487,046	$31,830	65.5%	5.4%	25.22
172	Port St. Lucie, FL	$81,928	8.2%	26.40	21.0%	$5,367,535	$369,462	$35,311	77.2%	5.1%	24.96
173	Flint, MI	$55,403	4.7%	20.50	59.2%	$4,875,076	$248,899	$29,409	70.2%	4.6%	24.87
174	Springfield, MA	$152,269	13.3%	9.25	27.0%	$2,962,578	$109,874	$28,082	53.4%	5.5%	22.79
175	Birmingham-Hoover, AL	$80,823	6.8%	21.61	33.1%	$3,529,432	$265,417	$34,896	72.0%	5.3%	22.03
176	Mobile, AL	$63,245	4.3%	32.77	68.0%	$3,783,961	$301,294	$30,004	68.4%	6.8%	21.91
177	Fayetteville, NC	$85,734	8.4%	27.19	40.0%	$1,477,826	$230,317	$38,630	86.4%	6.8%	21.46
178	Duluth, MN-WI	$134,420	16.0%	3.01	-5.9%	$2,734,607	$186,683	$29,351	61.7%	5.5%	20.20

Methodology

NerdWallet analyzed 178 U.S. metropolitan areas, each with populations of 250,000 or more. Six metro areas without business or loan data were excluded.

Here’s how we calculated the overall score for each location:

Business climate, 55% of the overall score, is based on four metrics from the U.S. Census Bureau’s Survey of Business Owners:

• Average revenue per minority-owned business is 15% of the score. A higher average contributed to a higher score.
• Minority-owned businesses per 1,000 residents is 15% of the score. A higher proportion contributed to a higher score.
• Growth in minority-owned businesses from 2007 to 2012 is 15% of the score. A higher growth rate contributed to a higher score.
• Percentage of minority-owned businesses with paid employees is 10% of the score. A higher percentage contributed to a higher score.

Local economic health, 20% of the overall score, is based on three metrics from the U.S. Census Bureau’s American Community Survey:

• Unemployment rate is 10% of the score. A lower rate contributed to a higher score.
• Median household annual income for minorities is 5% of the score. A higher median income contributed to a higher score.
• Median annual income of local minorities as a percentage of the annual income for the area is 5% of the score. A higher percentage contributed to a higher score.

Financing opportunities, 25% of the overall score, are based on two metrics from the Small Business Administration and the American Community Survey:

• SBA-guaranteed loans per 100,000 residents are 15% of the score. A higher rate contributed to a higher score.
• The average size of SBA-guaranteed loans is 10% of the score. Larger average loans contributed to a higher score.

Jonathan Todd is a data analyst at NerdWallet, a personal finance website. Email: jonathan.todd@nerdwallet.com. Kevin Voigt is a staff writer at NerdWallet. Email: kevin@nerdwallet.com. Twitter: @kevinvoigt.

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Infographic by Michael Belen. Image courtesy of Johnny Travis.