C&I Loans (Small Banks) -- Historical Chart
C&I Loans - Small Banks. Gray shaded areas indicate U.S. recessions.
Source: Federal Reserve Bank of St. Louis (FRED), Series CILSCBW027SBOG. Updated 2026-03-09.
What the Feb 2026 Data Shows
At $709.2B, c&i loans (small banks) in Feb 2026 is above the 10-year average of $283.4B by $425.9B. The reading has been mixed recently, fluctuating without a clear directional trend over the past 6 months.
FRED series CILSCBW027SBOG tracks C&I lending at smaller domestically chartered banks -- every bank outside the top 25 by total assets. These community and regional banks are the backbone of small business lending in America, serving local businesses that are too small for large bank attention.
Small bank C&I lending reflects Main Street credit conditions. These banks make relationship-based lending decisions, often to businesses with limited financial statement history, limited collateral, and personal guarantees from the owner. The underwriting is more judgment-based than model-based.
Small bank C&I volume has been under secular pressure from fintech competitors and industry consolidation, but these institutions remain critical for the roughly 30 million small businesses in the United States.
What This Metric Measures
This page tracks the total C&I loans held by small domestically chartered commercial banks (outside the top 25 by assets). The data comes from the Federal Reserve Bank of St. Louis FRED database, series CILSCBW027SBOG, updated weekly.
Historical Context
The all-time peak was $798.7B in Jul 2020. The all-time trough was $63.8B in Apr 1985. During COVID-19, the reading hit $798.7B (Jul 2020). Year-over-year, the metric has moved -7.2%.
Why It Matters
Small bank C&I trends are the best available proxy for Main Street credit availability. When small bank lending contracts, it directly affects the businesses that have no other options -- the restaurant, the plumbing company, the local manufacturer. These businesses cannot access bond markets or large bank syndicated facilities.
The post-SVB environment raised questions about small bank deposit stability and lending capacity. Tracking small bank C&I volume reveals whether the regional bank stress of 2023 translated into actual credit contraction for small businesses.
What This Means for Business Owners
Understanding where this metric stands relative to historical norms helps business owners make better borrowing decisions. When c&i loans (small banks) is above its 10-year average, it signals changing conditions in the credit markets that affect both cost and availability of financing.
Comparison: Related Series
| Series | Current | Period | YoY Change |
|---|---|---|---|
| C&I Loans - Small Banks | $709.2B | Feb 2026 | -7.2% |
| C&I Loans - Large Banks | $1.5T | Feb 2026 | +5.9% |
C&I Loans (Small Banks) -- Frequently Asked Questions
Small domestically chartered banks hold $709.2B in C&I loans as of Feb 2026, per FRED series CILSCBW027SBOG.
The balance moved down from the prior period. The reading has been mixed recently, fluctuating without a clear directional trend over the past 6 months.
The regional bank stress in early 2023 caused some deposit flight from smaller banks, which reduced their lending capacity. However, the impact varied widely by institution and region.
Small banks specialize in relationship lending -- making credit decisions based on knowledge of the borrower and local market conditions. Large banks use automated underwriting that often disqualifies small, less-documented businesses.
Slowly. Industry consolidation and fintech competition have reduced the number of small banks. But those that remain continue to serve a critical role for businesses too small or too complex for algorithmic underwriting.
FRED series CILSCBW027SBOG, from the Federal Reserve H.8 weekly release. 'Small' means all domestically chartered banks outside the top 25 by assets.