What Higher Rates Haven't Changed: The Role of Smart Credit – and Smarter Relationships
CHICAGO, July 17, 2025 (GLOBE NEWSWIRE) -- In a high-rate environment, business lending has become more selective, but not impossible. For banks and borrowers who focus on fundamentals, communication, and long- term planning, financing is still getting done. To help make sense of what's changing (and what still works), we spoke with Brian R. Monson, Senior Vice President and Deputy Chief Credit Officer at First American Bank.
With more than two decades of experience in commercial credit and underwriting, Brian offers timely insights into borrower behavior, what banks are really looking for right now, and why strong relationships still make the biggest difference.
Q: How has the rise in interest rates changed the lending landscape?
Brian: When rates spiked, many business owners did what you'd expect: they paused and reassessed. Loan payments were suddenly much higher. Deals that made sense a year ago didn't pencil out the same way. So, sponsors started bringing in more equity, valuations came down, and people got more cautious.
We saw a slowdown in loan demand across the board. Businesses crave certainty, and when that's in short supply, they tend to wait.
Q: Are you still seeing strong lending activity in certain cases?
Brian: Absolutely. While the volume of deals has slowed, the fundamentals haven't changed. We're still making loans every day to companies that are well-managed, financially sound, and planning ahead. What's different now is that credit decisions require more context. Numbers matter, but the story behind those numbers matters more.
Q: What kind of factors do you look at beyond the financials?
Brian: We take a holistic view. Are receivables being collected on time? Are ...
