BUSINESS CREDIT & CAPITAL MARKETS · SEPTEMBER 13, 2026
Business Debt Growth Slows as Private Credit Gains Visibility
The Federal Reserve's second-quarter Financial Accounts show nonfinancial business debt growing at a 4.6% annual rate, with $24.0 trillion outstanding and newly expanded detail on private credit lending.
What the September 11 release reports
Source publication date: September 11, 2026. The Federal Reserve's Financial Accounts show domestic nonfinancial business debt increasing at a 4.6% seasonally adjusted annual rate in the second quarter, down from 7.0% in the first quarter. Outstanding nonfinancial business debt totaled $24.0 trillion at quarter-end, including $15.7 trillion of corporate debt and $8.3 trillion of noncorporate debt.
- 01Debt grew at a 4.6% annual rate
- 02Corporate debt totaled $15.7T
- 03Private credit reached 7.1% of corporate debt
The release adds clearer private-credit detail
The Federal Reserve incorporated private-credit lending vehicles and private-credit loans into the Financial Accounts. It reported private credit at 7.1% of corporate debt, nearly equal to the share of nonmortgage loans from depository institutions. Corporate debt grew at a 5.5% annual rate, while noncorporate business debt—associated largely with smaller, often unincorporated businesses—grew at a 2.8% rate.
Aggregate debt does not describe an individual loan market
The Financial Accounts combine public and private companies, many instruments, and borrowers of very different size and quality. Growth in outstanding debt does not show that credit is inexpensive, universally available, or appropriate for a particular transaction. Bank loans, private credit, mortgage loans, equipment facilities, and capital-market debt can differ materially in amortization, maturity, covenants, collateral, reporting, fees, prepayment, recourse, and refinancing risk.
Practical borrower takeaway
Define the use of funds and repayment source before comparing capital providers. Build a lender-ready package with reconciled historical and interim statements, projections, debt schedule, collateral information, ownership, and downside analysis. Compare total economics and control terms across structures, and preserve enough cash and maturity runway for a case in which revenue, valuation, or refinancing conditions are less favorable than planned.
Borrowers should compare bank, private-credit, mortgage, bond, and other structures using the full cost, repayment profile, collateral, covenants, reporting requirements, and exit risk—not market growth alone.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.