Market watchers note that finance company loans now exceed $1.3 trillion in outstanding balances, signaling strong demand from SMEs. Equity strategists believe that stocks in the non-bank finance sector could outperform the S&P 500 in the next six months if lending margins stay above 4%. CoreWeave's $6.3 Billion Backstop Deal With Nvidia: What It Means for Each Company was originally published by The Motley Fool The SBA backs small business loans provided by traditional banks by covering a portion of the loan if the borrower defaults. Since there is less risk for lenders, rates for SBA-backed loans are more competitive and may feature better terms. The finance company loans trend is marked by rising competition among lenders, leading to marginal spread tightening. Equity analysts see this as a neutral factor in valuation models but note long-term growth prospects remain intact.