📅 July 2025

Small Business Credit Conditions Remain Tight
Bank lending to small businesses continued to decline in July as higher reserve requirements and risk aversion persist. Approval rates at major banks dropped another 2% month-over-month, and processing times remain lengthy.

Private Capital Demand Hits New Highs
Alternative lenders and private credit funds reported record origination volumes in July, as small business owners seek faster, more flexible capital options. Bridge financing and revolving credit lines are particularly popular.

Interest Rate Outlook in Focus
Markets are watching the Federal Reserve closely as inflation shows signs of cooling further. A rate cut as early as September is now widely expected, which could ease borrowing costs for small business owners later this year.

Heatwaves and Power Strains Hit U.S. Businesses
Historic July heatwaves across the South and Midwest led to rolling blackouts and reduced foot traffic in some areas. Hospitality, retail, and logistics operators reported disruptions and increased utility costs.

AI Tools See Surge in Small Business Adoption
AI-powered marketing, customer service, and analytics tools gained traction in July, with surveys showing nearly 40% of small businesses now experimenting with generative AI platforms to cut costs and improve efficiency.

Minimum Wage Hikes Take Effect in Several States
New minimum wage laws in states including California and Illinois took effect this month, increasing labor costs for restaurants, retailers, and other small employers. Some are passing costs on to customers, while others are exploring automation.

Summer Tourism Remains Strong
Domestic tourism remained robust through July, with beach towns, national parks, and cultural festivals driving strong revenue for local businesses. Staffing shortages, however, remain a concern in many tourist-heavy markets.

3.7%: U.S. unemployment rate (June)

$2.0 trillion: Estimated total small business debt outstanding (SBA estimate, updated)

18%: Year-over-year drop in small business loan approvals at traditional banks

50.7 million: Americans projected to travel for July 4th weekend (AAA, record high)