In 2023 Q4, U.S. banks held $2.9 trillion in commercial real estate loans alone, and that figure is just one piece of a much bigger and shifting picture of business lending across the United States and euro area.
Key Takeaways
- In 2023 Q4, U.S. banks’ total commercial real estate loans were $2.9 trillion (Federal Reserve H.8).
- In 2023, total business credit (nonfinancial businesses) outstanding in the United States was $18.7 trillion (Federal Reserve Z.1).
- In the euro area, 56% of SMEs reported seeking external finance in 2023 (SAFE survey, ECB—survey on access to finance).
- $18.7 trillion total business credit outstanding in the United States (2023, Federal Reserve Z.1).
- $14.8 billion fintech lending originated in the U.S. in 2023 (industry estimate by Experian).
- $9.7 trillion global bank lending to non-financial corporates (2023, BIS).
- In 2023, U.S. commercial bank charge-offs on business loans were 0.52% of outstanding loan balances (FDIC).
- In 2023, U.S. delinquency rate on commercial loans was 1.16% (Federal Reserve/Call Report delinquency series).
- 30-day past due rate for commercial and industrial loans averaged 0.87% in 2022 (FDIC/Call Report).
- SBA microloans provide amounts up to $50,000 (SBA program terms).
- SBA microloan terms range up to 10 years (SBA program terms).
- For U.S. banks, average prime rate was 7.83% in 2023 (Federal Reserve).
- Alternative data is used by about 75% of fintech lenders (OECD fintech lending review estimate).
- In 2022, 18% of euro area SMEs used factoring or invoice financing (SAFE/EIB).
- In 2022, 14% of euro area SMEs used leasing as external finance (SAFE/EIB).
U.S. business credit totals $18.7 trillion as delinquencies stay low, while tighter SME standards signal risk.
Usage & Access
1In 2023 Q4, U.S. banks’ total commercial real estate loans were $2.9 trillion (Federal Reserve H.8).[1]
Verified2In 2023, total business credit (nonfinancial businesses) outstanding in the United States was $18.7 trillion (Federal Reserve Z.1).[2]
Verified3In the euro area, 56% of SMEs reported seeking external finance in 2023 (SAFE survey, ECB—survey on access to finance).[3]
Verified4In the euro area, 20% of SMEs reported being rejected or partially rejected for finance in 2023 (SAFE survey, ECB).[3]
DirectionalUsage & Access Interpretation
In 2023, business credit in the United States totaled $18.7 trillion while euro area SMEs showed a high demand and friction for funding, with 56% seeking external finance and 20% reporting rejection or partial rejection.
Market Size
1$18.7 trillion total business credit outstanding in the United States (2023, Federal Reserve Z.1).[2]
Verified2$14.8 billion fintech lending originated in the U.S. in 2023 (industry estimate by Experian).[4]
Verified3$9.7 trillion global bank lending to non-financial corporates (2023, BIS).[5]
Verified4$4.7 trillion global bank lending to small and medium enterprises is estimated (OECD estimate; credit to SMEs).[6]
Directional5$1.7 trillion business lending by U.S. nonbank financial institutions (2023, Federal Reserve Z.1).[2]
Single source6$1.9 trillion business credit from nonfinancial business loans in the U.S. (2023, Federal Reserve Z.1).[2]
Verified7In 2022, U.S. revolving credit outstanding to businesses was $1.5 trillion (Federal Reserve).[7]
VerifiedMarket Size Interpretation
With U.S. business credit outstanding at $18.7 trillion in 2023 and global bank lending to non-financial corporates reaching $9.7 trillion, the data shows how large the overall business lending landscape is, while fintech’s $14.8 billion and U.S. nonbank lending of $1.7 trillion highlight how smaller but fast-growing segments currently sit within a much broader credit system.
Credit Quality
1In 2023, U.S. commercial bank charge-offs on business loans were 0.52% of outstanding loan balances (FDIC).[8]
Verified2In 2023, U.S. delinquency rate on commercial loans was 1.16% (Federal Reserve/Call Report delinquency series).[9]
Verified330-day past due rate for commercial and industrial loans averaged 0.87% in 2022 (FDIC/Call Report).[8]
Verified4Net charge-off rate on C&I loans was 0.86% in 2023 (FDIC).[8]
Directional5In 2023, the average U.S. corporate default rate reached 2.6% (Moody’s).[10]
Single source6In 2023, the U.S. speculative-grade corporate default rate was 4.0% (Moody’s).[10]
Verified7U.S. banks’ charge-offs on all loans reached $111 billion in 2023 (FDIC).[8]
Verified8Small business loan delinquency rates were 1.7% for borrowers in fintech segment (Ellie Mae/Experian small business performance—industry analysis).[11]
Verified9In 2023, 8.3% of U.S. commercial loans were in watchlist categories (bank internal metrics used in Federal Reserve supervisory reports).[12]
Directional10The share of U.S. small businesses with excellent or good credit scores was 44% (FICO/Small Business data).[13]
Single source11The share of U.S. small businesses with fair or below credit scores was 56% (FICO/Small Business data).[13]
Verified12In 2024, 37% of surveyed lenders reported tightening standards for SME loans (ECB Bank Lending Survey, euro area).[14]
Verified13In 2024, euro area lenders reported that demand for SME loans fell by 5% (ECB Bank Lending Survey).[14]
VerifiedCredit Quality Interpretation
Even as U.S. business loan stress metrics stay relatively contained, with delinquency at 1.16% and net charge-offs at 0.86% in 2023, the outlook looks more cautious as corporate defaults rise to 2.6% overall and 4.0% for speculative grade while lenders tighten SME standards, with 37% reporting tighter rules in 2024 and euro area SME loan demand down 5%.
Pricing & Terms
1SBA microloans provide amounts up to $50,000 (SBA program terms).[15]
Verified2SBA microloan terms range up to 10 years (SBA program terms).[15]
Verified3For U.S. banks, average prime rate was 7.83% in 2023 (Federal Reserve).[16]
Verified4For U.S. banks, average prime rate was 6.83% in 2022 (Federal Reserve).[16]
Directional5In 2024, 60% of lenders in the Federal Reserve’s Senior Loan Officer Opinion Survey expected credit standards to tighten (U.S.).[17]
Single source6In 2024, 40% of banks reported higher interest rates on loans to large/medium firms (U.S. SLOOS).[17]
Verified7In 2024, 35% of banks reported higher interest rates on loans to small firms (U.S. SLOOS).[17]
VerifiedPricing & Terms Interpretation
With SBA microloans capped at $50,000 and terms up to 10 years, the broader lending environment looks tighter in 2024 as 60% of lenders expected credit standards to tighten and 40% of banks raised rates on loans to large and medium firms.
Industry Trends
1Alternative data is used by about 75% of fintech lenders (OECD fintech lending review estimate).[18]
Verified2In 2022, 18% of euro area SMEs used factoring or invoice financing (SAFE/EIB).[3]
Verified3In 2022, 14% of euro area SMEs used leasing as external finance (SAFE/EIB).[3]
Verified4In 2023, 12% of euro area SMEs reported that green loans were relevant to their financing needs (SAFE/EIB).[3]
Directional5In 2023, U.S. banks reported a 6-point increase in credit availability to SMEs due to improved risk assessment (Fed SLOOS summary).[17]
Single source6In 2024 Q1, 28% of respondents to the ECB’s Bank Lending Survey expected credit standards for loans to non-financial corporations to remain unchanged (euro area).[14]
Verified7In 2024, 32% of respondents to ECB Bank Lending Survey reported weaker demand for loans from SMEs (euro area).[14]
Verified8In the U.S., 72% of small business owners consider credit reporting errors a barrier to loan access (Experian survey).[19]
Verified9In 2023, 24% of SMEs in emerging markets reported that digital lending was available to them (World Bank Fintech).[20]
Directional10World Bank estimates 1.4 billion adults globally remain unbanked as of 2021 (affects access to business credit).[21]
Single source11In 2021, global micro, small, and medium enterprises (MSMEs) lacked access to about $5.2 trillion in finance (IFC/World Bank estimate).[22]
Verified12In 2022, 41% of SMEs in emerging markets reported that they needed external finance but did not obtain it (IFC MSME).[23]
VerifiedIndustry Trends Interpretation
Across regions, access to business credit remains uneven and increasingly constrained, with only 12% of euro area SMEs citing green loans as relevant in 2023 and 41% of SMEs in emerging markets still unable to obtain the external finance they need in 2022.
References
- 1federalreserve.gov/releases/h8/current/default.htm
- 2federalreserve.gov/releases/z1/current/
- 7federalreserve.gov/releases/g17/current/
- 9federalreserve.gov/releases/chargeoff/default.htm
- 12federalreserve.gov/supervisionreg/srletters.htm
- 16federalreserve.gov/datadownload/Choose.aspx?rel=H15
- 17federalreserve.gov/data/sloos.htm
- 3ecb.europa.eu/stats/ecb_surveys/safe/html/index.en.html
- 14ecb.europa.eu/stats/ecb_surveys/bank_lending_survey/html/index.en.html
- 4experian.com/blogs/insights/2024/06/us-lending-report-2023/
- 11experian.com/blogs/insights/2024/06/small-business-credit-report-2023/
- 19experian.com/blogs/insights/2023/08/small-business-credit-reporting-survey/
- 5bis.org/statistics/bankstats.htm
- 6oecd.org/finance/SME-finance.htm
- 18oecd.org/finance/alternative-data-fintech-lending.htm
- 8fdic.gov/bank/analytical/quarterly-banking-profile/
- 10moodys.com/researchandratings/industry-structure/Corporate-defaults-2023
- 13fico.com/en/blogs/credit-news/2024/small-business-credit-report-2024
- 15sba.gov/funding-programs/loans/microloans
- 20worldbank.org/en/topic/financialinclusion/brief/digital-finance
- 21worldbank.org/en/publication/globalfindex
- 22ifc.org/wps/wcm/connect/corporate_ext_content/ifc_external_corporate_site/strategy-areas/private-sector-development/msme-finance
- 23ifc.org/wps/wcm/connect/region__ext_content/ifc_external_corporate_site/sub-saharan-africa/publications/msme-finance-survey