KANSAS CITY, MISSOURI - The Federal Reserve Bank of Kansas City today released the results from the Second Quarter 2022 External LinkNational Small Business Lending Survey. The quarterly survey of U.S. banks provides data on lending activity and terms for small businesses, a critical source of employment and economic growth for the country.
The survey found that small business lending decreased compared to the second quarter of 2021. Complete results of the survey are now available from the Kansas City Fed’s website, External Linkkansascityfed.org.
Key findings include:
- New small business loan balances decreased nearly 35 percent when compared to the previous year.
- All banks that indicated a change in credit standards reported tightened standards for the first time since the survey was implemented in the fourth quarter of 2017.
- Respondents noted diminishing credit quality and overall weaker loan demand.
- Some respondents indicated that supply chain disruptions impacted loan demand with about 26 percent indicating that disruptions increased demand.
The Federal Reserve Bank of Kansas City’s national quarterly Small Business Lending Survey (FR 2028D) includes quantitative and qualitative data on credit market conditions for bank lending to small businesses across the country. The survey results provide detailed information on commercial banks’ lending activity and terms and offer a snapshot of small businesses’ access to credit.
Bill Medley: Bill.Medley@kc.frb.org
Victoria Rosengarten: Victoria.Rosengarten@kc.frb.org