Average draw utilization on SMB lines crossed 62% in Q2 2026 — the highest since 2019 — yet headline pricing has tightened 90 bps as bank and non-bank lenders compete for prime files.
Revolving credit usage in the SMB segment has quietly returned to pre-pandemic norms. Utilization on lines we monitor crossed 62% in Q2 2026, the highest reading since 2019, even as average drawn-balance pricing tightened roughly 90 bps year-over-year.
The dynamic reflects two converging trends: non-bank fintech lenders aggressively underwriting prime files, and several regional banks restoring SMB revolver capacity that was trimmed during the 2023 liquidity squeeze.
On a $250K – $500K facility, prime A files can expect Prime + 1.5 to Prime + 3.5 with annual renewals. Push for a covenant-light structure; many fintech revolvers now ship without trailing-twelve-month financial covenants under $500K.
Watch the unused-line fee — 0.25% to 0.50% is standard. Anything above 0.75% is renegotiable at renewal in this market.
With the front of the curve at 4.85% and the belly inverting only modestly, equipment financing pricing has improved materially for A and B credits.
Discount fees on non-recourse invoice factoring held at 1.8% to 2.4% per 30 days through Q2 2026, even as average DSO on SMB receivables extended four days year-over-year.
Senior bridge debt is pricing SOFR + 450 to 700 over 65% to 70% LTV, with 1 to 2 points up front. Pricing is materially better for industrial and worse for office.
