Top 4 Commercial and Industrial (C&I) Loan Trends

Top 4 Commercial and Industrial (C&I) Loan Trends

Commercial and Industrial Loans (C&I) are often needed by small and medium sized businesses for a variety of reasons. Business owners understand that taking the next step in achieving their growth and expansion objectives usually involves the necessary financing, or capital in the form of a commercial loan. And so, not all debt is bad!
Let us take a look at some noteworthy trends or expectations for the general economic sentiment about C&I Loans.

• Generally speaking, banks have shown a blend of tightening and easing lending standards. There were significant tightening standards following the COVID pandemic, however, current trends point to a more positive tone, with community and local banks loosening some lending criteria due to competitive pressures.
• Loan demand across most industries is expected to increase in the coming years. Banks are positioning themselves in anticipation of stronger demand from small to medium sized businesses.
• The spread of loan rates over the cost of funds has become slightly more favorable given the Federal Reserve’s recent rate cut decisions. This suggests that some banks will begin to offer more favorable loan terms.
• In short, the end result is that overall, improving economic conditions will continue to drive positive C&I loan trends. Banks, in turn, will adjust their strategic plans based on industry-specific challenges and wider economic indicators. This will prove to be a promising outcome for business owners seeking financing to expand operations, hire more people, or grow within new markets to attract more customers.

If your business could use financing to support growth or you’d like to learn more about any of these trends, I would love to speak with you about how Kearny Bank can help your business succeed. Email me today or call at 973.244.4027.

By Robert Melchionne, SVP | Director of C&I Lending

About Robert:

Robert Melchionne is SVP, Director of C&I Lending at Kearny Bank, where he leads a team of commercial and industrial lending professionals. Together, they provide commercial credit facilities to privately held businesses in need of debt capital in order to grow and expand their businesses. In a banking career of over 25 years, Robert has experience in providing commercial credit facilities to borrowers with needs such as short-term and long-term working capital, term debt financing for fixed asset expansion, business acquisition, commercial mortgages for real property, and international trade finance services for import and export companies.

Robert earned his bachelor’s degree in business administration/economics from Montclair State University. He also holds an MBA from Caldwell University.

To learn more about Kearny Bank’s C&I Lending capabilities, contact Robert.