For lenders and brokers, the numbers point to a market where access to capital remains important, but simply generating more applications is not enough. Matching borrowers to appropriate products, evaluating risk efficiently, and creating a faster financing experience are becoming increasingly important competitive advantages.

Here are some of the most important lending statistics and trends to know in 2026.

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2026 lending statistics at a glance

Sources: Federal Reserve Banks' 2026 Small Business Credit Survey reports and Federal Reserve interest-rate data.

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1. 60% of small businesses sought financing

According to the Federal Reserve Banks' 2026 Report on Employer Firms, 60% of small businesses surveyed sought financing during the previous 12 months. The two most common reasons were covering operating expenses, cited by 56% of firms seeking financing, and pursuing expansion or new opportunities, cited by 46%.

Demand for capital therefore extends beyond companies experiencing financial stress. Businesses continue to use financing for both liquidity and growth, giving lenders opportunities to build products and acquisition strategies around different borrower needs.

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2. Only 42% of applicants received all the financing they wanted

Access remains a significant issue. Just 42% of financing applicants received the full amount they sought. Another 36% received some or most of the requested financing, while 22% received none.

Among applicants that were not approved for at least some financing, 46% said lender requirements were too strict. Other commonly reported reasons included existing debt, low credit scores, insufficient collateral, and weak sales.

For brokers, these numbers reinforce the value of maintaining a diversified lender network. A borrower that falls outside one lender's credit box may still qualify for another product, making effective lender matching and decline-pass strategies increasingly important.

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3. Online lenders now attract 29% of loan applicants

The share of businesses applying to online fintech lenders has increased for five consecutive survey years. Among businesses seeking loans, lines of credit, or merchant cash advances, 29% applied with an online lender in the 2025 survey, up from 17% in 2020.

Borrowers are being drawn online partly by speed and perceived approval opportunities. However, 60% of borrowers using online lenders said their actual borrowing costs were higher than expected.

The opportunity for digital lenders is therefore not just making financing faster. Clearer offers, transparent terms, better matching, and smoother borrower experiences can all help differentiate lenders in an increasingly digital market.

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4. Small-business credit demand stabilized as 2026 progressed

Bank lending conditions shifted during the first half of the year. In Q1, banks reported tighter commercial and industrial lending standards while demand was largely unchanged. By Q2, C&I standards were basically unchanged, while demand strengthened among large and middle-market companies. Small-business demand remained essentially unchanged.

The Federal Reserve also found that C&I lending standards in July were generally easier than the midpoint of their historical ranges and had eased compared with July 2025.

This creates a potentially more competitive environment for lenders. As credit conditions evolve, lenders and brokers need the ability to adjust underwriting strategies and routing criteria without rebuilding their workflows every time the market changes.

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5. HELOC balances reached $459 billion

Home equity is another area showing meaningful lending activity. U.S. HELOC balances increased by $13 billion during Q2 2026 to reach $459 billion, $142 billion above their Q1 2022 low. The Federal Reserve's July survey also found stronger HELOC demand while lending standards remained essentially unchanged.

For brokers, expanding beyond traditional business financing can create additional ways to serve business owners. Products such as HELOCs may provide another financing option for qualified borrowers when conventional business credit is not the best fit.

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6. 38% of small businesses carry more than $100,000 in debt

Although the percentage of firms reporting no outstanding debt increased from 29% to 31%, 38% of businesses still reported more than $100,000 in outstanding debt.

Existing debt increasingly matters during underwriting. Among businesses denied at least some financing, 37% identified having too much existing debt as a reason for the denial.

This makes comprehensive financial data increasingly important. Credit data alone may not provide the full picture lenders need, particularly when assessing cash flow, existing obligations, revenue stability, and capacity for additional debt.

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7. AI adoption among small businesses has reached 46%

AI is becoming relevant on both sides of the lending experience. The Federal Reserve found that 46% of small businesses already use AI in some capacity, while another 15% planned to begin using it within the following 12 months.

For lenders, the same shift is creating opportunities to automate document analysis, borrower communication, application processing, data enrichment, and other operational workflows.

At Lendflow, these capabilities can be combined across Intelligence, Automate, and Connect. Lenders can use data and decisioning infrastructure to evaluate applicants, AI-powered automation to manage repetitive workflows, and multi-lender orchestration to route opportunities based on predefined criteria.

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What do 2026 lending trends mean for lenders and brokers?

The data points toward a lending market where borrowers still need capital, but accessing and delivering that capital efficiently remains challenging.

For lenders, that means improving the infrastructure between application and decision. For brokers, it means building broader lender relationships and getting better at identifying where each opportunity belongs.

The next stage of lending competition may be less about simply generating more applications and more about what happens after an application enters the funnel. Better data aggregation, automated underwriting, AI-powered operations, and intelligent lender matching can help more qualified opportunities reach the right financing option with less manual work.

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Frequently asked questions about lending in 2026

What percentage of small businesses are seeking financing?

Sixty percent of employer firms surveyed by the Federal Reserve Banks sought financing during the prior 12 months. Operating expenses and business expansion were the two most commonly cited reasons.

Are online lenders becoming more popular?

Yes. Among businesses applying for loans, lines of credit, or merchant cash advances, the share applying at online lenders increased from 17% in 2020 to 29% in 2025.

Are banks tightening business lending standards in 2026?

Conditions have been mixed. Banks reported modest tightening of C&I standards in Q1 2026, but standards were basically unchanged in Q2. By July, C&I standards were generally easier than the midpoint of their historical ranges.

What lending trends should brokers watch in 2026?

Key trends include growing online lending adoption, continued financing gaps among small businesses, changing credit standards, increased use of alternative financial data, growing HELOC balances, and greater use of AI and automation throughout lending workflows.

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