Gold Horn Ventures Monthly Lending & Small Business Update

📅 August 2025

Small Business Lending Shows Signs of Stabilization
After months of steady decline, small business loan approvals at regional banks and credit unions plateaued in August. While approval rates remain below pre-2023 levels, some lenders are slowly easing underwriting requirements amid improving economic sentiment.

Private Credit Firms Expand Offerings
Private lenders continued to ramp up activity, with new programs targeting niche industries like e-commerce, healthcare, and logistics. Merchant cash advance and revenue-based financing options remain in high demand for businesses seeking speed over traditional terms.

Fed Holds Steady — Markets Still Expect September Cut
The Federal Reserve left interest rates unchanged in its August meeting but signaled optimism around inflation trends. Many analysts still anticipate a rate cut at the September meeting, which could spur renewed borrowing activity into Q4.

Hurricane Season Threatens Coastal Business Activity
Tropical storm activity intensified in August, forcing evacuations and temporary closures along parts of the Gulf and Southeast coasts. Many small businesses are reviewing disaster contingency plans and seeking short-term financing to prepare.

Back-to-School Season Boosts Retail and E-Commerce
Strong consumer spending during the back-to-school rush provided a lift for retailers, especially in apparel, tech, and school supplies. E-commerce platforms reported double-digit growth in August compared to the same time last year.

Labor Market Remains Tight in Key Sectors
Skilled trades, logistics, and hospitality continue to face worker shortages despite steady unemployment levels. Small business owners are responding with signing bonuses, schedule flexibility, and in some cases, turning to automation or outsourcing.

Commercial Real Estate Vacancy Ticks Up Slightly
Office vacancy rates in urban centers rose modestly in August, as hybrid work trends persist. Some small businesses are taking advantage of the softening market to negotiate shorter leases or relocate to more affordable spaces.

• 3.8%: U.S. unemployment rate (July)
   
• 7.2%: Average interest rate on short-term business loans (Q3 average)
   
• $3.1 trillion: Total U.S. commercial real estate debt (Federal Reserve estimate)
   
• 42%: Small businesses reporting AI usage for operations or marketing (NFIB survey)
   
• 6.9 million: Number of U.S. job openings in Ju Horn Ventures Monthly Lending & Small Business Update