Lending Index Score Holds Steady at 73 in Q1 2025 from Q4 2024, Depositor Loyalty Up is for Grabs in Lendio SMB Lending Index

LEHI, Utah, April 9, 2025 /PRNewswire/ -- Lendio's Q1 2025 SMB Lending Index reveals a surge in lender optimism as access to small business capital improves significantly. The percentage of lenders who rated access to capital as "Poor" dropped significantly from 29% in Q3 2024 to just 9%, while "Very Positive" responses nearly doubled, climbing from 8% to 18%.

The SMB Lending Index Score of 73 in Q1 2025 held steady from Q4 2024, with lenders expecting even greater flexibility in the coming months. Half of the surveyed lenders anticipate their credit criteria loosening further in Q2 2025, while 41% expect it to remain unchanged. Only a small percentage believe lending requirements will become tighter.

Regionally, the Midwest led with an index score of 74, up two points from Q4 2024, followed by the South with an unchanged score of 73. Access to capital improved for industries like wholesale, agriculture and forestry, and information and media, while retail, construction and finance saw tightening conditions.

Survey results from 1400+ SMB owners reveal lukewarm loyalty to the banks they deposit with. 39% of respondents revealed they had already considered moving their deposits, and cited unmet business lending needs (39%), a better online or mobile banking experience (36%) and poor customer service (27%) as primary drivers.

56% of respondents who hadn't yet considered moving their deposits noted that better access to business lending would make them consider a switch. Other top reasons for considering a move were lower fees or more favorable account terms (46%), and a better online or mobile banking experience (32%).

"Credit access has emerged as the pivotal factor in maintaining SMB depositor loyalty," said Philip Taliaferro, Chief Growth Officer at Lendio. "The recent rate run-up and the Silicon Valley Bank collapse have driven a dual shift: business owners are sharpening their focus on savings yield, and banks are increasingly demanding that new lending relationships also translate into deposit commitments. By integrating deposit primacy with lending, banks will not simply react to market pressures, but strategically position themselves for sustainable growth in a rapidly evolving financial landscape."

Read the full report here.

About Lendio

Lendio is transforming small business lending by connecting small businesses, lenders, and small business service providers through a single integrated technology platform. Lendio provides purpose-built software that automates small business loan decisioning and underwriting for both banks and digital lenders, uses AI to match small businesses to the financing offers that best meet their needs, and embeds a full small business loan marketplace directly within small business service providers' platforms – all of which work together to get small businesses access to the capital they need to be successful.

Media contact:

Kristen Dahlin
[email protected] 
(855) 853-6346

SOURCE Lendio