American businesses are borrowing from banks again, and at a pace not seen since the early days of the pandemic. Commercial and industrial loans at US domestic banks have surged to approximately $2.93 trillion, representing a year-over-year increase of roughly $247 billion and marking the highest level of business lending since June 2020.
The numbers behind the lending boom
Federal Reserve H.8 data, which tracks the balance sheets of commercial banks on a weekly basis, tells a story of acceleration after a long stretch of stagnation. C&I loans had flatlined for roughly 18 months starting in mid-2023, barely budging as businesses sat on the sidelines amid rate uncertainty and tighter lending standards.
The first two quarters of 2026 saw a dramatic ramp-up, with year-to-date additions reaching approximately $185 billion by mid-year. February alone accounted for a $50.43 billion single-month jump. By mid-May, outstanding C&I loans had already hit $2.89 trillion, representing the third-largest annual gain since April 2023. The trajectory only steepened from there, pushing past $2.93 trillion by mid-August.
The all-time peak for C&I lending was $3.07 trillion back in May 2020. Current levels sit about $180 billion below that watermark.
Big banks are leading the charge
Wells Fargo posted an 8.3% quarter-over-quarter increase in C&I loans during the first quarter of 2026. PNC came in at 6.4% over the same period. JPMorgan Chase has also reported strong sequential gains in its commercial lending book.
One notable dynamic: businesses appear to be rotating away from private credit markets and back toward traditional bank financing. Private credit, which ballooned into a multi-trillion-dollar asset class over the past several years, offered borrowers flexibility but often came with higher costs and less favorable terms than conventional bank loans. As banks have become more willing to compete on pricing, the value proposition of private credit has dimmed for many corporate treasurers.
What’s driving the demand
The February spike in particular suggests a wave of capital expenditure decisions. Businesses don’t borrow $50 billion in a single month to cover payroll. That kind of activity points to equipment purchases, facility expansions, and strategic investments that companies had been deferring during the period of maximum uncertainty around interest rates and economic direction.
Persistent inflation has kept input costs elevated for many businesses, meaning they need more working capital just to maintain existing operations. At the same time, softer labor markets have reduced some cost pressures on the wage front.