The Spokane economy continues to emerge from a challenging post-pandemic recovery and a complicated past year. While interest rates and tariffs impacted plans for development and growth in 2025, Spokane's downtown continued to make progress, and the business community has proven resilient. As 2026 begins, we see positive momentum and growing confidence among local businesses continuing, which bodes well for our city and region in the year ahead.  

In particular, a surge in lending recently reported by the U.S. Small Business Administration across our region and nationally indicates that more small businesses are growth-minded and seeking capital to finance expansion and invest back into their enterprises. 

In federal fiscal year 2025 in Washington state, businesses secured 2,334 total loans, according to SBA’s Seattle District, which serves the majority of the state including Spokane, along with parts of Idaho. That was up 14.6% year over year. Effectively, 300 more small businesses across the district received funding in 2025 compared with one year prior, infusing roughly $1.2 billion into the regional economy.  

In Spokane and Kootenai counties, businesses secured $110 million in SBA loans in 2025, a 15.8% year-over-year increase. 

Since these numbers were reported in November, we’ve seen continued appetite for SBA lending, even as the SBA recently tightened standards to ensure financing goes to businesses best positioned for success. 

SBA 7(a) a key to momentum  

The uptick in SBA 7(a) loans is especially noteworthy. Nationally, the SBA issued a record total of $37 billion in 7(a) loans during its fiscal year 2025.  

SBA 7(a) loans are more growth-oriented, flexible loans that provide working capital for a range of business needs and plans. By contrast, SBA 504 loans primarily fund the purchase of fixed assets like real estate, renovations, and equipment. Coming out of the pandemic, 504 loan demand remained steady, while 7(a) loan growth lagged despite expanded access.  

But in 2025, that trend reversed. SBA 7(a) originations surged nationwide — a development mirrored in Spokane and Kootenai counties, reflecting a renewed focus on growth that began to emerge one year earlier.  

As a provider of SBA financing in Washington state, Columbia Bank increasingly sees more local businesses accelerate their expansion plans, acquisitions, and real estate purchases. Right now, there is particularly strong SBA activity in manufacturing, health care, education, consulting, and agriculture, especially with cattle ranching.  

For instance, one local manufacturer recently proceeded with a $500,000 loan that afforded expanded space and increased manufacturing capacity. The owners, who had previously delayed moving on the property and expansion due to interest rate and tariff uncertainty, now felt confident enough to act.  

We’re also seeing more businesses starting to reap the benefits of securing SBA capital earlier in the business lifecycle. In one case, a modest $50,000 SBA Express line of credit provided a local company with its first access to business credit. Its decision to turn to SBA lending a few short years ago served as the seed working capital that helped it go from generating about $200,000 in annual revenue to $4.5 million this year. 

Advice for 2026

For companies in the Spokane area looking to expand, the beginning of the year is the perfect time to start planning. And now with more rate clarity from the Federal Reserve, we strongly encourage owners to discuss with their bank any plans and the diverse options that may be available to support expansion. Looping in a strong banking partner on ideas and plans being considered not only unlocks potential options, it also positions a business to act quickly and decisively when opportunities arise. 

If the recent past is any guide, businesses also need to be flexible and nimble. Just weeks into the year,  2026 is already throwing potential curveballs. There will always be a measure of uncertainty. Businesses cannot assume that what’s worked previously will work in the future. The key is finding the balance to be forward-looking without being so committed to a roadmap that they are unable or unwilling to pivot if market developments start impacting their business. 

On the whole, we are encouraged by the plans and activities we see from Spokane-area business owners. A growing number appear ready to invest in their futures. With 2026 now in full swing, confidence among local businesses is trending in a positive direction. That’s good news for our city and region. 

Amy Davis serves as Columbia Bank's director of business banking and SBA production. Clint Gillum serves as retail market regional director, Inland Northwest at Columbia Bank.