Equifax Inc. reported a decrease in small business lending for May 2025, with the Equifax Small Business Lending Index (SBLI) showing a nominal decrease of 6.8% month-over-month and 5.3% year-over-year. Despite a slight 0.7% month-over-month increase in the three-month moving average, it declined by 2.8% year-over-year. The Small Business Delinquency Index (SBDI) 31-90 Days Past Due rose slightly to 1.72% in May 2025, up by two basis points month-over-month and one basis point year-over-year. The SBDI 91-180 Days Past Due also saw a slight increase to 0.70% from April to May 2025. The Small Business Default Index (SBDFI) remained steady at 3.32%, decreasing three basis points month-over-month. The regional analysis showed that 27 states experienced a year-over-year decrease in 12-month rolling lending volumes, with California, Georgia, Florida, and New York among the largest states experiencing declines. Conversely, Illinois and Michigan showed growth of 6% and 5%, respectively. Iowa, South Dakota, and Hawaii reported the highest growth numbers, while Wyoming posted the largest decrease. Month-over-month, lending activity declined in 31 states, with Ohio experiencing the most significant drop at -1%. In terms of delinquencies, the 31-90 day SBDI increased by 6% in the Construction industry and 5% in Retail compared to May 2024, while other sectors like Transportation and Agriculture saw improvements with decreases of 13% and 11%, respectively. Despite sluggish lending activity due to high interest rates, small business defaults have continued to fall, and delinquencies have stabilized. The near-term outlook for small businesses is mixed, with improved owner sentiment and potential benefits from a recent tax bill, offset by economic concerns such as a consumer spending slowdown and rising inflation.