Business loan demand softens as firms seek cheaper debt

FILE PHOTO: View of the facade as construction continues on the Federal Reserve Board building, in Washington, D.C., U.S., September 17, 2025. REUTERS/Ken Cedeno/File Photo

U.S. business demand for bank loans fell last quarter for the first time in over a year, according to a Federal Reserve survey released on Monday. The decline reflects shifting borrower preferences and cooling capital expenditures across the United States. Policymakers reviewed the data ahead of their October 27-28 meeting, where they opted to keep short-term borrowing costs unchanged.