- U.S. commercial and industrial (C&I) loan growth accelerated to a 14.8% annualized rate in Q2 2026
- Q2 loan growth was the fastest since 2022, when the U.S. economy was emerging from the pandemic
- Surging loan growth and additional data from Crisil Coalition Greenwich suggest U.S. companies are increasingly optimistic about the economy
September 22, 2026 — Commercial and industrial (C&I) loan growth accelerated in Q2 2026 to a rate not seen since 2022, when the U.S. economy was emerging from the pandemic. That growth, which marked a second consecutive quarter of strong increases in C&I lending activity, stands out as a bullish signal in an economy beset with apparent challenges.
Updated FRED data from the Federal Reserve Bank of St. Louis shows that U.S. C&I loan growth increased more than 2% in Q2 2026 to an impressive 14.8% annualized rate.
“Accelerating loan growth is a powerful signal that U.S. businesses have confidence in the economy,” says Gregory Schneider, Director, Greenwich Commercial Loan Analytics at Coalition Greenwich.
Companies’ increased confidence in the economy is reflected in the latest reading of the Greenwich Optimism Index (GOI). Every quarter, Crisil Coalition Greenwich surveys executives at nearly 2,000 small businesses and midsize companies for their opinions about the business environment and economic outlook. In June 2026, the GQI moved into positive territory for the first time since September 2024.
U.S. companies are citing improving business opportunities, stronger export/import conditions relative to Q1, and a more promising outlook as reasons to believe the economy will continue to improve.
“In the loan market, economic optimism among business owners and executives often translates into companies becoming more willing to finance things like working capital, inventory, capital expenditures, and new business opportunities,” says Gregory Schneider.
Looking ahead, U.S. banks generally expect commercial lending momentum to continue, supported by healthy pipelines and sustained demand from direct-company borrowers. However, even with that bullish outlook, management teams believe the exceptional first-half pace may moderate over the remainder of 2026—especially in light of the U.S. Federal Reserve's September rate increase and expectations of at least one more hike ahead.
Drivers of loan growth among banks and private credit providers
Accelerating C&I loan growth in Q2 was driven by a broadening of demand for direct-company newly originated loans, particularly in core operating sectors, along with higher utilization on existing revolving lines, especially among non-depository financial institutions (NDFI) borrowers.
Origination activity in Q2 became more concentrated among core direct operating companies, specifically among borrowers in healthcare, manufacturing and wholesale trade. “Traditional banks remain the primary financing channel to U.S. small businesses and midsize companies, with 42% of companies using bank financing exclusively and another 19% open to a combination of bank and private-credit funding,” says Gregory Schneider.
Although NDFIs were not a major driver of growth in new-originated volume last quarter, they did contribute to overall funded balance growth as companies drew more heavily on existing NDFI credit lines.
Learn more: Commercial Lending Market Insight - Q3 2026 | Coalition Greenwich