US commercial banks report $254B surge in loans, highest since 2020

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 202...