Experian Commercial Pulse Report
Outstanding student loan debt in the U.S. has reached an all-time high of $1.63 trillion, and the ripple effects are being felt far beyond the personal finance arena. This unprecedented debt burden is now shaping the way many small business owners borrow, manage credit, and maintain financial stability.
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This week, the Commercial Pulse Report reveals a clear and growing link between student loan obligations and small business credit performance. For lenders, policymakers, and business leaders, this is a trend that can’t be ignored.
The Scale of the Challenge
Student loan balances have surged over 550% since 2003, rising from roughly $250 billion to more than $1.6 trillion in early 2025. Even during the pandemic-era repayment moratorium, when interest was frozen and payments paused, balances continued to grow — albeit modestly, by just 2.9%.
Policy shifts, such as the recently enacted One Big Beautiful Bill Act, are set to reshape the student loan landscape yet again — from changes in borrowing limits to the sunset of certain repayment plans. As these changes take effect, they will inevitably influence the personal financial health of millions, including business owners who are navigating both consumer and commercial credit obligations.
Student Loan Debt Among Business Owners
Experian’s data shows that approximately 5% of business owners currently carry student loan debt — up from 4% in 2019. While that may seem like a small slice of the business population, the growth rate is significant and points to a deeper shift in borrowing dynamics.
Also, since 2020, when some federal student loan repayments were forgiven or paused, business owners with student loans have been opening a larger share of new commercial credit accounts. In 2019, they represented 11% of new account openings. By 2025, that share had risen to 14%.
This suggests that temporary relief on personal loan payments may have freed up capacity for some entrepreneurs to access additional business credit — a trend worth watching as repayment requirements return in full force.
Risk & Performance Differences
Our data also shows clear performance gaps between business owners with and without student loans:
Delinquency rates are higher for those with unpaid government-backed student loans, especially among newer businesses. In 2023, 4% of new businesses with these loans had a 90+ day delinquency, compared to 3% for owners without student loans.
Credit risk scores tell a similar story: owners without student loans average a score of 58, versus 53 for owners with unpaid government loans.
Business stability also differs. Owners without student loans tend to have longer operating histories, higher commercial balances, and more active credit accounts — all indicators of stronger credit health. For lenders, this means personal debt load isn’t just a side note; it can be a leading indicator of small business credit behavior and repayment risk.
Implications for Lenders & Policymakers
As personal and commercial credit health become increasingly interconnected, financial institutions may need to refine their risk models to account for personal debt obligations like student loans.
- Underwriting: Integrating consumer credit insights into business credit assessments could help identify early warning signs.
- Portfolio management: Segmenting accounts by student loan status may reveal patterns in repayment behavior and growth potential.
- Policy considerations: As student loan repayment policies shift, small business access to credit , and their ability to maintain healthy repayment patterns could change in tandem.
The $1.63 trillion student loan burden isn’t just a consumer finance story — it’s a small business credit story, too. As more entrepreneurs carry this debt, the link between personal obligations and business performance will only grow stronger. Understanding and monitoring this crossover trend is essential for informed decision-making, whether you’re extending credit, managing a portfolio, or shaping policy.
For the full analysis, including all small business credit trends, read the latest Experian Commercial Pulse Report.
- ✔ Visit our Commercial Insights Hub for in-depth reports and expert analysis.
- ✔ Subscribe to our YouTube channel for regular updates on small business trends.
- ✔ Connect with your Experian account team to explore how data-driven insights can help your business grow.
Logistics credit risk is rising according to Experian’s latest Commercial Pulse report, signaling financial strain.
Rising costs are continuing to squeeze American wallets — and perhaps nowhere is that more apparent than in the food sector. According to the latest Experian Commercial Pulse Report (October 14, 2025), food prices are having a profound impact on where and how consumers choose to eat. With the Consumer Price Index for food rising 3.2% year-over-year, both full-service and limited-service restaurants are feeling the heat. Watch the Commercial Pulse Update Specifically, Full-Service Restaurant prices have surged 4.6%, while Limited-Service locations have seen more modest increases of 3.2%, the lowest pace in over a year. As price-sensitive consumers pull back on discretionary spending, Experian’s data shows a notable shift toward more affordable dining options—or a return to eating at home. Credit Demand Is Strong, But Approval May Be Slipping Even with shifting consumer habits, restaurants are not sitting idle. Experian’s credit data reveals that both Full-Service and Limited-Service Restaurants are actively seeking commercial credit — a likely sign of increased working capital needs in the face of inflation and tighter margins. However, access to that credit appears to be narrowing. Commercial inquiries from Full-Service Restaurants have risen to 1.7x pre-pandemic levels. Limited-Service Restaurants follow closely at 1.5x. Yet the number of credit-active Limited-Service establishments has declined, suggesting either a slowdown in approvals or reduced eligibility. This contrast implies that demand for financing is rising faster than approval rates, especially for smaller or newer businesses trying to stay competitive amid rising costs. Shrinking Credit Limits, Rising Utilization Restaurants are not only facing tighter access but also leaner terms. Average credit limits for new commercial card accounts have fallen significantly since 2021: Full-Service Restaurants: Down from $11,500 to under $6,000 Limited-Service Restaurants: Also trending downward Groceries (used as a benchmark for at-home eating): Down from $13,000 to $9,000 At the same time, credit utilization rates are climbing — an early warning sign that businesses are relying more heavily on revolving credit to manage day-to-day operations. Full-Service Restaurants now use 31.9% of available credit, up 4.6 points since 2023. Limited-Service Restaurants trail close behind at 31.8%. Groceries come in at 28.8%, showing increased pressure even in the at-home dining sector. Taken together, this combination of lower credit limits and higher utilization points to a tightening credit environment, which may be challenging for restaurants to navigate through the holiday and post-holiday seasons. Commercial Risk Trends Tell a Mixed Story One of the more nuanced insights in Experian’s report is how different restaurant types are weathering the current environment from a risk perspective: Full-Service Restaurants show only a modest decline in commercial risk scores (–0.8 points), suggesting relative resilience despite financial pressures. Limited-Service Restaurants, interestingly, saw a +1.4 point improvement in risk scores—indicating increased stability and better adaptation to current market conditions. In contrast, grocery retailers—the benchmark for “eat-at-home” sectors—experienced a -1.8 point drop in their risk scores, highlighting greater strain in that segment. This divergence reflects a growing consumer shift toward lower-cost food options like quick-service dining, potentially at the expense of both full-service restaurants and grocers. What It Means for Lenders and Business Strategy These trends carry significant implications for financial institutions, credit providers, and small business advisors: Rising inquiries + shrinking credit limits = greater risk of liquidity stress Stronger risk scores for Limited-Service = opportunity for more targeted lending or product offerings Elevated utilization rates = need to monitor credit performance closely, especially for revolving credit For business owners and operators, understanding these dynamics is crucial to building resilience in a volatile market. Strategic decisions around financing, menu pricing, staffing, and technology adoption will likely make or break performance through the next few quarters. Conclusion: A Sector Under Pressure — but not out While economic headwinds persist, the restaurant industry shows remarkable adaptability. Whether it’s shifting toward leaner operations, targeting lower-income consumers, or increasing credit usage to bridge cash flow gaps, the sector is evolving in real-time. As always, Experian’s insights provide a critical lens into these movements—helping lenders, business leaders, and policymakers make smarter decisions amid uncertainty. For the full analysis, including all small business credit trends, read the latest Experian Commercial Pulse Report. ✔ Visit our Commercial Insights Hub for in-depth reports and expert analysis. ✔ Subscribe to our YouTube channel for regular updates on small business trends. ✔ Connect with your Experian account team to explore how data-driven insights can help your business grow. Download the Commercial Pulse Report Visit Commercial Insights Hub Related Posts
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