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Commercial Loans from US Banks Rise as Businesses Feel the Pinch

Oct. 24, 2022, 2:25 PM

Commercial and industrial loans are on the rise as US businesses grapple with rising illiquidity and higher compensation costs.

Loans at US commercial banks increased to $2.779 trillion in the week ended Oct. 12 from $2.771 trillion the week before, according to Federal Reserve data. While commercial loans across all US banks jumped to their pandemic high of $3.1 trillion in May of 2020, government stimulus programs pushed that figure lower last year. Now it’s resumed its climb.

The increase is one reflection of the limitations rising interest rates and labor shortages are placing on America’s small-business owners, according to ...