Specialized Lenders Fuel Business Growth Amid Economic Caution

OGDEN, UT – January 22, 2026 – As businesses navigated a mixed economic landscape in late 2025, specialized financial institutions played an increasingly crucial role in providing essential capital. Exemplifying this trend, TAB Bank announced it closed the fourth quarter of 2025 by providing $71.7 million in financing to 145 companies across the United States. The funding underscores a growing reliance on alternative lenders for working capital, equipment financing, and growth initiatives at a time when traditional credit channels remain cautious.

The Ogden-based bank's performance offers a window into the capital needs of diverse sectors, including manufacturing, e-commerce, transportation, and financial services. The financing was delivered through a variety of flexible products such as asset-based lending (ABL), factoring, equipment loans, and small business lines of credit, highlighting a demand for tailored solutions that extend beyond conventional bank loans.

A Barometer for Business Health

TAB Bank's Q4 activity serves as a telling indicator of where capital is flowing in the small and medium-sized business (SMB) ecosystem. The largest single deal was a $15 million revolving credit facility for Gehr Industries, a California-based developer and distributor of copper wire and electrical accessories. Another significant transaction was a $7 million credit facility for Certified Flux Solutions, a specialized manufacturer in Kentucky serving the aluminum industry.

This support for the manufacturing sector is particularly noteworthy. Broader market data from Q4 2025 indicated a 25.3% decrease in funding demand from manufacturing firms compared to the previous quarter, suggesting widespread caution regarding capital investment. In this context, the financing secured by companies like Gehr and Certified Flux Solutions indicates that while the sector may be hesitant as a whole, individual firms with strong fundamentals are actively seeking and securing capital from specialized lenders to fuel their operations and growth.

Furthermore, the bank allocated $8.8 million to nearly 50 small businesses through lines of credit and term loans. This aligns with broader economic trends from late 2025, where working capital and cash flow support were the primary drivers for loan applications among SMBs. With inflationary pressures pushing operating costs higher, access to flexible credit lines has become a defensive necessity for many businesses, allowing them to manage expenses and maintain stability.

The Rise of Specialized Finance

The strong quarter for TAB Bank is not an isolated event but rather a reflection of a significant shift in the commercial lending landscape. The global market for asset-based lending, a core offering for the bank, reached an estimated $891.89 billion in 2025 and is projected to grow by nearly 13% in 2026. This surge is fueled by a tightening of traditional credit conditions and the expanding financing needs of SMEs.

While major U.S. banks reported overall loan growth in late 2025, Federal Reserve surveys from the same period pointed to weak commercial loan demand and a tightening of lending standards. This apparent contradiction highlights a critical gap in the market: large, traditional institutions may be focusing on lower-risk clients, leaving a significant number of viable SMEs underserved. Specialized lenders, private credit funds, and fintech platforms are stepping in to fill this void.

These alternative financiers are often better equipped to underwrite businesses based on the value of their assets—such as accounts receivable or inventory—rather than relying solely on traditional credit metrics. This approach, central to both ABL and factoring, unlocks liquidity for companies that might otherwise be unable to secure financing. TAB's factoring division, which provides credit facilities from $50,000 to $500,000, specifically helps smaller transportation carriers manage cash flow and compete with larger operators, demonstrating the targeted impact of such financial tools.

Empowering Underserved Markets

A key part of TAB Bank's stated mission is to empower businesses in underserved markets. This commitment is addressed through its flexible underwriting and personalized approach, which caters to businesses that may not fit the rigid criteria of conventional banks.

“At TAB Bank, we’re all about providing personalized financial solutions to empower businesses to thrive,” said Justin Hatch, Chief Lending Officer at TAB Bank. “Whether businesses need working capital to sustain growth or equipment loans to expand operations, we deliver flexible financing options designed to meet unique needs. We are proud of our work in Q4 and remain committed to helping companies, especially those in underserved markets, access the capital they need to scale and succeed.”

This philosophy is crucial for fostering economic inclusivity. SMEs, particularly those in niche industries or with non-traditional growth patterns, often face significant barriers to accessing capital. By offering a diverse suite of products—from a $2.5 million facility for a Nevada-based media agency to $9.5 million in funding for various equipment needs—lenders like TAB demonstrate an ability to assess and support a wide spectrum of business models.

Looking Ahead to 2026

The economic forecast for 2026 suggests that the trends observed in late 2025 will likely accelerate. An anticipated economic rebound, potentially spurred by Federal Reserve interest rate cuts, is expected to create a strategic window for businesses to invest and expand. This environment is projected to fuel a surge in demand for commercial financing.

Analysts predict a notable increase in loan market activity, with specialized finance sectors poised for particularly strong performance. The asset-based lending and factoring markets are both projected to continue their robust growth trajectories. Private credit, which encompasses asset-based finance, is expected to deepen its market penetration as traditional banks continue to de-risk their balance sheets.

For small businesses, which entered 2026 with a focus on shoring up cash flow, this combination of renewed economic optimism and diverse funding options presents a significant opportunity. Lenders that have established a strong foothold in specialized finance, demonstrated by strong performance in periods of uncertainty, are well-positioned to meet this rising demand and continue fueling the growth of the nation's businesses.