The Federal Reserve’s Vice Chair for Supervision, Michelle Bowman, emphasized small businesses’ role in the U.S. economy during the Consumer Bankers Association’s CBA LIVE 2026 event in San Diego. Small businesses employ 59 million Americans, generate $16 trillion in revenue, and account for 44% of GDP. New firms drive job growth, and high‑growth firms boost productivity. Credit conditions are tight; a recent Small Business Lending Survey found 9% of banks tightened standards for commercial and industrial loans to small firms. Among banks, the smallest hold nearly one‑third of $600 billion in loans below $1 million; the largest provide 18% of these loans. Basel III proposals propose lower risk weights: loans >$1 million would carry 65% instead of 100%, and loans <$1 million would carry 75%. The Fed invites public comment on these changes to ensure access to capital for entrepreneurs.
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