Small Business Lending Decreased in November 2025

THE EQUIFAX NOVEMBER SMALL BUSINESS LENDING INDEX (SBLI) showed that nominal small business lending volumes decreased 8.2% month-over-month and 6.8% year-over-year. The SBLI three-month moving average increased 0.1% month-over-month but decreased 0.1% year-over-year.

Meanwhile, the Equifax Small Business Delinquency Index (SBDI) 31-90 Days Past Due was 1.68% in November, down one basis point month-over-month and down 10 basis points from November 2024. The SBDI 91–180 days past due remained level at 0.71% from October 2025 to November 2025. The Small Business Default Index (SBDFI) measured 3.14% and was down 11 basis points month-over-month. 

Although lending slowed from the previous month, small business credit quality improved: short-term (31–90 days) and severe (91–180) delinquencies held steady from October to November while defaults fell by 11 basis points.

The economy expanded at a 4.3% annualized pace in Q3 and is expected to post solid growth in Q4, exceeding mid-year forecasts. Looking ahead, two trends will be particularly relevant for small businesses in 2026: affordability concerns and a “low hire” labor market. Though inflation has slowed, years of higher-than-average price growth have led to significant increases in consumer and business costs. Meanwhile, a slowdown in hiring could also weigh on growth prospects.

Regional Analysis

Small Business Lending:

In November, 33 states had a year-over-year increase in 12-month rolling lending volumes. Of the 10 largest* states, seven showed an increase from 2024. Georgia had the strongest improvement at 6.3%. California decreased the most at -9.8%. Of all states, Oklahoma (+12%) and Hawaii (+9%) had the highest growth numbers compared to the same period last year. Alaska (-16%) and Vermont (-10%) posted the largest decreases from November 2024 of all states.

Month-over-month, nominal lending activity was down in 36 states in the preceding 12 months, including eight of the 10 largest states. The remaining states where lending increased showed increases of less than 1%. Ohio (+0.7%) had the highest growth of the 10 largest states in the 12-month period ending in November 2025 as compared to the 12-month period ending in October 2025. California dropped 1.6% and New York dropped 1.3%. Of all states, Alaska (-4% month-over-month) and Vermont (-3% month-over-month) decreased the most.

Small Business Delinquency and Default:

Defaults decreased in 40 states year-over-year and decreased in 39 states month-over-month. Year-over-year, Massachusetts improved the most, declining by 30%, while New Jersey had the largest default rate increase, jumping 13%. Texas (4.4%), Florida (4.3%), and Georgia (4.2%) had the highest overall default rates among all states. Pennsylvania (2.0%), North Dakota (2.0%), and Ohio (2.1%) had the lowest. Of the 10 largest states, only Texas and Georgia increased default rates in November 2025, rising 1.8% and 3.7% year-over-year, respectively. The remaining states decreased default rates year-over-year, led by New York which dropped by 28%.

In 31-90 day delinquency, 33 states had an increase in delinquency month-over-month. Florida (3.0%), Georgia (2.7%), and Alabama (2.4%) had the highest delinquency rates in November 2025, while South Dakota (0.8%), Ohio (0.9%), and North Dakota (1.0%) had the lowest. Delaware showed the largest year-over-year increase in delinquency, rising 73 basis points since last November. Of the 10 largest states, Michigan (+35 basis points) and Florida (+11 basis points) had the largest year-over-year increases. California decreased 27 basis points from November 2024, and North Carolina dropped 21 basis points.

Industry Analysis

Small Business Lending: 

• In November 2025, nominal small business lending fell in 13 of the 17 tracked industries month-over-month, holding steady in Other Services (except Public Administration), Educational Services, Construction, and Real Estate and Rental and Leasing.

• 12-month rolling lending activity weakened most month-over-month (-3%) in Information.

• Compared to November 2024, lending rose the most in Real Estate and Rental and Leasing (+6%) followed by Finance and Insurance (+5%). Lending fell in Information (-12%) and Mining, Quarrying, and Oil and Gas Extraction (-8%).

Small Business Delinquency and Default:

• In November 2025, the annualized SBDFI rose or held steady month-over-month in two of the 17 tracked industries, with the largest increase in Mining, Quarrying, and Oil and Gas Extraction (+3%).

• From November 2024 to November 2025, the SBDFI increased in five of the 17 tracked industries, led by Mining, Quarrying, and Oil and Gas Extraction (+21%), Arts, Entertainment, and Recreation (+10%), and Agriculture, Forestry, Fishing and Hunting (+7%).

• From November 2024 to November 2025, the 31-90 day SBDI increased 8% in the Agriculture industry. Construction remained flat. All other segments improved, with Transportation dropping 12% and General decreasing 7%.

Produced monthly, the Small Business Indices help lenders and businesses track changes in the small business marketplace by providing insights into lending, default and delinquency trends. To learn more and view the latest reports, check out our Small Business Indices page.

*By population