The Short Answer
Six in ten small businesses applied for financing in the past year, but fewer than half of applicants received everything they asked for. Those two numbers, from the Federal Reserve Banks’ 2026 Report on Employer Firms, frame small business lending in 2026. Here are the six trends behind them and what each means for owners.
Published October 2026 by RAN Funding. Figures come from the Federal Reserve Banks’ Small Business Credit Survey of 6,525 employer firms, fielded September to November 2025 and released March 3, 2026, unless noted.
2026 At A Glance
| Finding | Figure |
|---|---|
| Firms that applied for financing in the prior 12 months | 60% |
| Applicants that received the full amount | 42% |
| Applicants that received some or most | 36% |
| Applicants that received none | 22% |
| Applicants that sought financing from online lenders | 29% (17% in 2020) |
| Firms reporting rising costs and/or tariff costs as a challenge | 77% |
Trend 1: Most Businesses Are Seeking Financing
Sixty percent of firms applied for financing in the 12 months before the survey, and 86% use financing on a regular basis. The top reasons were meeting operating expenses (56%) and pursuing an expansion or new opportunity (46%).
What it means: financing is a routine operating tool, and most requests are about running the business, not rescuing it.
Trend 2: Full Funding Is Still The Exception
Forty-two percent of applicants received the full amount they sought. Another 36% received some or most, and 22% received none. The share that received the full amount held steady from the year before but remains below pre-pandemic levels.
What it means: preparation and product choice matter. See Why Applications Get Declined.
Trend 3: Online Lending Keeps Growing
Among firms that applied for loans, lines of credit or cash advances, large banks were the most common place to apply, followed by online lenders and small banks. The share applying to online lenders rose from 17% in the 2020 survey to 29% in the 2025 survey.
What it means: owners are choosing speed and access, and funders outside traditional banks are now a mainstream source.
Trend 4: Cost Surprises Are Common
Sixty percent of firms that borrowed from online lenders said their actual borrowing costs were higher than expected. At small banks the figure was 37%, and at large banks 32%.
What it means: compare offers on total payback and have someone explain the terms before you sign. Our Factor Rate vs. APR guide shows how.
Trend 5: Rising Costs And Tariffs Are Squeezing Cash Flow
Rising costs of goods, services and wages was the most common financial challenge. More than four in ten firms also reported tariff-related cost increases, and 77% reported one or both. Tariff pressure was highest in retail (69%) and manufacturing (62%). Expectations for revenue growth fell to their lowest level since the 2020 survey.
What it means: more working capital requests are about covering higher input costs for the same sales. See Funding to Cover a Cash Flow Gap.
Trend 6: New Federal Data Rules Were Narrowed
On May 1, 2026, the Consumer Financial Protection Bureau issued a final rule scaling back its small business lending data collection requirements (Section 1071). The revised rule took effect June 30, 2026, with a compliance date of January 1, 2028. It excludes merchant cash advances from covered transactions and defines a small business, for the rule’s purposes, as one with $1 million or less in gross annual revenue.
What it means: owners will see little change day to day. Disclosure rules for cash advances are still set state by state; see MCA Disclosure Laws by State.
What This Means For Your Business
- Apply before the need is urgent. Timelines are shortest when your documents are ready.
- Keep three to four months of clean business bank statements on hand.
- Match the product to the purpose, and compare every offer on total payback.
For more figures, see Business Funding Statistics 2026.
With RAN Funding you complete one application for our lender network and work with one dedicated specialist. Funding is available in as little as 24–48 hours.
Apply Now or call 877-522-6045.
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Sources
- 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey — Federal Reserve Banks, March 3, 2026
- Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) — Consumer Financial Protection Bureau, final rule, May 1, 2026
See What Your Business Qualifies For
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