OECD: SME lending shortfall
- The OECD reports that new SME lending remains materially below pre‑pandemic levels despite lower interest rates. - New SME lending is about 20% below 2019 levels and 53% of SMEs still require collateral for loans. - Ongoing lending gaps suggest continued pressure on small-business liquidity and higher collateral demands for lenders. (x.com)
Small-business lending is still running below where it stood before COVID, even after borrowing costs started to ease. (oecd.org) The Organisation for Economic Co-operation and Development said in its 2026 SME finance scoreboard that new lending to small and medium-sized enterprises has begun to recover, but the total stock of SME loans is “broadly stagnant” across nearly 50 countries. The report was published in April 2026. (oecd.org) OECD data cited in the release show new SME lending remains about 20% below 2019 levels, and 53% of SMEs still have to pledge collateral to get loans. The group said banks are still applying stringent lending terms amid economic uncertainty. (oecd.org) For a small business, a loan is working cash for payroll, inventory, rent, and equipment. When banks ask for more collateral or keep credit lines flat, firms can keep operating but delay expansion and longer-term investment. (worldbank.org, oecd.org) The OECD said that pattern has already shown up in the data: businesses are shifting toward smaller, shorter-term financing for immediate needs instead of longer-term investment. The organization linked that shift to weaker productivity, competitiveness, and resilience. (oecd.org) Small and medium-sized enterprises matter well beyond niche business policy. The OECD says they are a main source of employment and a core part of local economies, while the World Bank says they account for more than 90% of firms worldwide. (oecd.org, worldbank.org) The squeeze did not start this year. The OECD’s 2025 highlights, published on April 2, 2025, said official data through 2023 and early 2025 already showed a restrictive financing environment, weak factoring and leasing markets, and sharp declines in SME lending. (oecd.org, sipotra.it) Governments are trying to widen the menu of funding sources. The OECD said policy responses now include support for venture capital markets, asset-based finance, fintech models, and targeted programs for sectors such as green industry and deep tech. (oecd.org, oecd.org) The immediate picture, though, is that lower rates alone have not restored pre-pandemic credit flows to smaller firms. OECD’s latest scoreboard says the recovery in SME finance is still partial, and the gap is still showing up in liquidity, lending terms, and investment plans. (oecd.org)
