Italy's SME credit gap widens despite Lombardy's €11 bn loan plan

Bank lending in Italy rose 2.5% year‑on‑year in March 2026, marking a broader recovery in the credit market. However, loans to small enterprises fell 4.3% for the third consecutive year, and family‑run firms saw a 2.9% decline, while medium‑large companies recorded a 2.2% increase. The data illustrate a two‑speed recovery, with smaller firms lagging behind the overall improvement.

In Lombardy, regional financier Finlombarda and cooperative banking group BCC Iccrea signed an agreement to channel almost €11 billion of new financing to local SMEs over the next three years. The partnership will leverage the cooperative network’s 506 branches across 388 municipalities, emphasise ESG criteria, and support digital and ecological transformation, internationalisation, and generational business succession.

Together, these developments highlight ongoing difficulties for Italy’s smallest businesses in accessing credit, even as broader lending conditions improve and regional initiatives aim to boost SME financing.