Small Business Lending: Holding Steady Despite Uncertainty

The small business lending environment remains solid, even though some challenges are present.¹ While loan defaults and delinquencies aren’t ideal, they’re also not spiraling out of control. Businesses still have strong fundamentals backing them, with a healthy labor market, falling inflation, and steady jobless claims helping to keep things stable.

However, uncertainty is rising. Over the past two months, the NFIB Small Business Uncertainty Index has jumped 18 points, reaching its second-highest level in 40 years.² This increase shows that many business owners are unsure about what’s ahead. While the road forward may be bumpy, most businesses are in a good position to navigate the twists and turns.

Small business owners are also being cautious. Many are pausing before making big financial decisions, choosing to wait and see how things play out.³ This hesitation is understandable, but it is important to avoid falling into a self-fulfilling prophecy where fear itself becomes a barrier to growth. Staying level-headed, reading economic signals as they come, and making logical decisions will be key to moving forward successfully.

While no one can predict the future with certainty, the best approach is to remain informed, adaptable, and positive. The fundamentals remain strong, and businesses that stay flexible and strategic will be best positioned for whatever comes next.

For the full report and the latest monthly trends, make sure you are subscribed to our Small Business Indices. 

Keep Your Business Goals Within Sight

We hope you will join us for our April 2025 Market Pulse webinar taking place on Thursday, April 24, 2025, where we will hear up-to-the-minute news and insights from our all-star panel of top economists. To ask questions in real time and gain deeper insights before anyone else, you must be there. Don’t miss it!

Find our monthly Small Business Insights, National Consumer Credit Trends reports, the Market Pulse podcast, and more at our Market Pulse hub. 

Broaden your perspective with insights that inspire bold innovation, confident adaptation, and decisive leadership through Trends and Insights. 

Sources:

1. Small Business Lending Index, March 2025

2. NIFB Small Business Optimism Index, February 2025 Report: Small Business Optimism Recedes in February, February 2025

3. Bank of America Small Business Checkpoint, Curbing costs and raising revenues, February 2025