The State of Small Business Lending 2025

Navigating the Post-ZIRP Credit Landscape: Market Analysis, Regulatory Frameworks, and Strategic Capital Access.

7.00% WSJ Prime Rate
Inverted Yield Curve
Waived SBA Fees (FY25)
Read Executive Summary

Executive Summary: The Post-ZIRP Era

Capital discipline in a high-rate environment.

The American small business lending environment of late 2025 operates under a fundamentally different paradigm. We have exited the era of Zero Interest Rate Policy (ZIRP), entering a regime where the cost of funds exerts a tangible pull on business expansion.

With the Prime Rate anchored at 7.00%, the baseline for floating-rate commercial debt has reset. However, opportunities exist: the SBA has deployed aggressive fiscal countermeasures for Fiscal Year 2025, including the total elimination of upfront guaranty fees for loans under $1 million.

Key Insight: While traditional banks have tightened standards, the "credit gap" is being filled by a mix of government incentives and high-velocity fintech lenders.

Explore the 2025 Guide

Deep dives into specific lending strategies and programs.

🏢
SBA 7(a) Program

The engine of Main Street lending. Learn about the new fee waivers, interest rate ceilings, and how to leverage the "Credit Elsewhere" test.

🏭
SBA 504 Strategy

Strategic asset acquisition. Why the inverted yield curve makes long-term fixed rates (sub-6%) the smartest play for real estate.

Alternative Lending

Fintech, MCAs, and Factoring. Understand the speed vs. cost trade-off and the new disclosure laws in NY and CA.

Qualification Checklist

The Underwriting Gauntlet. FICO SBSS scores, DSCR requirements (1.25x), and the documentation you need to have ready.

State of Small Business Lending 2025 | LoanCompare

The State of Small Business Lending 2025

Navigating the Post-ZIRP Credit Landscape: Market Analysis, Regulatory Frameworks, and Strategic Capital Access.

7.00% WSJ Prime Rate
Inverted Yield Curve
Waived SBA Fees (FY25)
Read Executive Summary

Executive Summary: The Post-ZIRP Era

Capital discipline in a high-rate environment.

The American small business lending environment of late 2025 operates under a fundamentally different paradigm. We have exited the era of Zero Interest Rate Policy (ZIRP), entering a regime where the cost of funds exerts a tangible pull on business expansion.

With the Prime Rate anchored at 7.00%, the baseline for floating-rate commercial debt has reset. However, opportunities exist: the SBA has deployed aggressive fiscal countermeasures for Fiscal Year 2025, including the total elimination of upfront guaranty fees for loans under $1 million.

Key Insight: While traditional banks have tightened standards, the "credit gap" is being filled by a mix of government incentives and high-velocity fintech lenders.

Explore the 2025 Guide

Deep dives into specific lending strategies and programs.

🏢
SBA 7(a) Program

The engine of Main Street lending. Learn about the new fee waivers, interest rate ceilings, and how to leverage the "Credit Elsewhere" test.

🏭
SBA 504 Strategy

Strategic asset acquisition. Why the inverted yield curve makes long-term fixed rates (sub-6%) the smartest play for real estate.

Alternative Lending

Fintech, MCAs, and Factoring. Understand the speed vs. cost trade-off and the new disclosure laws in NY and CA.

Qualification Checklist

The Underwriting Gauntlet. FICO SBSS scores, DSCR requirements (1.25x), and the documentation you need to have ready.