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Business loan demand, small firms
Business loan demand, small firms is -11.9% net and has been falling over the last 3 months. That is in its normal range: higher than 34% of readings since 2007.
Latest (latest reading)
-11.9% net
As of
Q4 2026
3-month change
−16 % pts
1-year change
−10 % pts
20-year percentile
34th
20-year median
-3.3% net
What it is. Net share of banks seeing stronger loan demand from small firms; below zero means demand is falling. A higher reading means less credit stress in the Credit reading.
What it affects next
Business loan demand, small firms is falling: -11.9% net (−16 % pts in 3 months, 34th percentile of the last 20 years). Here is what has tended to follow, based on links the data backs up.
- →Industrial production: has tended to fall in the same month. Not following yet
- →Real GDP: has tended to fall in the same month. Following
What is driving it
None of its tested drivers is moving much right now.
All tested links
Firms borrow when they plan to expand; falling loan demand signals cautious businesses. Typical lag: 0-3 months. Strongest match in the same period (correlation 0.36, 123 observations since 1996).
Source: Federal Reserve Senior Loan Officer Survey via FRED (series DRSDCIS).