Italian SMEs face credit gap as small business loans decline

Italian small and medium-sized enterprises (SMEs) are facing significant credit disparities compared to larger corporations. According to data from the Bank of Italy cited by Federcepicostruzioni, loans to smaller companies fell by 5.5% year-on-year in May 2026, while loans to larger firms grew by 4.1%. Between September 2021 and September 2025, loans to businesses with fewer than 20 employees reportedly decreased by 23.8%.

The situation is particularly acute in Southern Italy. In Campania, while overall business loans grew by 2.1% in 2025, loans to small businesses dropped by 3.7%. The construction sector is also struggling due to these credit contractions and delays in public works payments, which complicates the implementation of the National Recovery and Resilience Plan (PNRR).

Conversely, a new study by UniCredit, Svimez, and Confindustria Campania Piccola Industria regarding SMEs in the South shows mixed signals. While 54.3% of surveyed SMEs reported increased turnover and over 50% expect growth in production and employment, they face significant operational hurdles. The primary obstacles identified are the costs of energy and raw materials (27.6%) and difficulties in recruiting labor (26.6%), rather than a lack of market demand.