Fed survey says banks tightened standards for small-firm and property loans

The Federal Reserve's quarterly survey of banks said standards for business loans to large and middle-market firms "were basically unchanged, while standards tightened for C&I loans to small firms." Banks reported tighter standards for all commercial real estate loan categories and "weaker demand, on net, for C&I loans from firms of all sizes." The survey covers roughly the third quarter of 2026.