Small Business Lending Increased in April 2025

THE EQUIFAX APRIL SMALL BUSINESS LENDING INDEX (SBLI) showed that nominal small business lending increased by 17.2% month-over-month and 3.4% year-over-year. The SBLI three-month moving average increased 1.6% month-over-month but remains 5.0% below its year-ago reading.

Meanwhile, the Equifax Small Business Delinquency Index (SBDI) 31-90 Days Past Due increased slightly to 1.71% in April 2025, up two basis points month-over-month. The Index increased one basis point year-over-year. The SBDI 91–180 Days Past Due remained flat at 0.69% from March 2025 to April 2025. The Small Business Default Index (SBDFI) decreased slightly to 3.32% and was down six basis points month-over-month. 

Though the improvement in SBLI in April is welcome news, many small business owners remain cautious in their investment plans due to tariff-related economic uncertainty, and the three month moving average remains below 2024 levels. After several months of steep decline, several measures of consumer and small business health showed signs of life in May. Still, persistent uncertainty from a “will they or won’t they” tariff posture, high interest rates, and the prospect for higher inflation later this year as tariffs take hold continue to weigh on the broader economic outlook.

Regional Analysis

Small Business Lending:

In April, 27 states had a year-over-year decrease in 12-month rolling lending volumes. Of the ten largest states, five showed a decrease from 2024. California decreased 11%, Georgia decreased 9%, Florida decreased 4%, and New York dropped 2%. Ohio showed 6% growth from last year while Michigan and Illinois both grew ~5%. Of all states, North Dakota (+21%), New Mexico (+13%) and Iowa (+12%) had some of the highest growth numbers from last year. Nevada (-15%) and Wyoming (-10%) posted some of the largest decreases from April 2024.

Month-over-month, nominal lending activity was up in 35 states in the preceding 12 months, including eight of the ten largest states. Only California and New York dropped slightly (of these ten) in the 12-month period ended in April 2025 as compared to the 12-month period ended in April 2024. Michigan and Ohio grew the most, both showing 1.5% increases in lending volumes. 

Small Business Delinquency and Default:

Defaults increased in 32 states annually but decreased in the majority of states (42 of 50) month-over-month. Year-over-year, Illinois improved nearly 22%, while Maine had the largest default rate increase, jumping 51%. Florida (4.4%), Louisiana (4.3%), and Texas (4.3%) had the highest overall default rates amongst all states. North Dakota (1.9%), Iowa (2.3%) and Minnesota (2.3%) had the lowest. Of the ten largest states, only North Carolina increased default rates month-over-month (+4%). The remaining states decreased default rates over March 2025, led by Illinois which dropped by almost 5%.

In 31-90 day delinquency, 39 states had a decrease in delinquency month-over-month. Florida (2.9%), Georgia (2.6%), and Connecticut (2.6%) had the highest delinquency rates in April 2025, while South Dakota (0.7%), Ohio (1.1%)  and Minnesota (1.1%) had the lowest. North Dakota showed the largest annual increase in delinquency, rising 89 basis points since last April. Of the ten largest states, Michigan (+26 bps), Pennsylvania (+9 bps), and Texas (+3 bps) had the largest year-over-year increases. North Carolina decreased 23 bps from April 2024, Illinois decreased 12 bps, and California and Ohio both dropped 5 bps.

Industry Analysis

Small Business Lending: 

• In April 2025, nominal small business lending fell in four of the 17 tracked industries month-over-month, holding steady in Retail Trade, Construction, and Health Care and Social Assistance.

• 12-month rolling lending activity weakened most month-over-month (-5%) in Mining, Quarrying, and Oil and Gas Extraction.

• Compared to April 2024, lending rose most in Arts, Entertainment, and Recreation (+8%), followed by Health Care and Social Assistance (+4%), and Finance and Insurance (+3%). Lending fell in Transportation and Warehousing (-8%), Mining, Quarrying, and Oil and Gas Extraction (-8%), and Other Services (except Public Administration) (-7%). 

Small Business Delinquency and Default:

• In April 2025, the annualized Small Business Default Index rose or held steady month-to-month in seven of the 17 tracked industries, with the largest increase in Mining, Quarrying, and Oil and Gas Extraction (+14%).

• On an annual basis, from April 2024 to April 2025, the SBDFI increased in 12 of the 17 tracked industries, led by Mining, Quarrying, and Oil and Gas Extraction (47%), Arts, Entertainment, and Recreation (38%) and Agriculture, Forestry, Fishing and Hunting (21%).

• On an annual basis, the 31-90 day SBDI increased 4% in the Construction industry and 4% in Retail  vs. April 2024. All other segments improved, with Agriculture decreasing 14% and Transportation dropping 10% from last year.

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.