Rising stress in the Federal Reserve’s Main Street Lending Program, where nearly 30% of borrowers are flagged as at risk of default and about 70% struggled with final balloon payments, is putting a harsh spotlight on small business credit risk. For investors, this is less about headline noise and more about which stocks are sitting closest to that pressure. This article breaks down 3 stocks that appear negatively exposed to the latest data on small and midsize business loan performance, helping you consider whether these risk profiles fit, or clash, with your current portfolio approach.

KeyCorp (KEY)

Overview: KeyCorp is a Cleveland based regional bank that, through KeyBank, offers everyday banking, lending, mortgages, credit cards and wealth management to consumers, while also providing commercial loans, cash management, equipment financing and capital markets services to businesses and institutions across the United States.

Operations: KeyCorp generates about US$3.8b in revenue from its Commercial Bank and US$3.5b from its Consumer Bank, with smaller negative adjustments in other segments, almost entirely from customers in the United States.

Market Cap: US$24.38b

KeyCorp sits at the intersection of small and midsize business stress and regional bank earnings hopes, which makes it hard to ignore for investors focused on credit risk. Analysts highlight revenue and earnings growth and the stock trading below an estimated fair value, alongside a 3.59% dividend and a growing commercial loan servicing business that offers fee income and market insight. At the same time, rising nonperforming loans, concerns around leveraged borrowers and higher-for-longer funding costs sit alongside fresh data showing nearly 30% of Main Street Lending borrowers at risk of default. For investors, the tension between these supports and mounting credit questions is a central feature of the current KeyCorp story.

KeyCorp’s story hinges on whether growing fee income can really offset creeping credit stress in small and midsize business loans. Before assuming it can, read the KeyCorp financial health report

Mint Incorporation (MIMI)

Overview: Mint Incorporation is a Hong Kong based contractor that designs, fits out, and maintains interiors for retail chains, restaurants, offices, charitable organizations and residential properties, handling everything from layout plans and drawings to installation of partitions, fixtures, plumbing and electrical systems.

Operations: Mint Incorporation generates about US$2.9m in revenue from providing design, fit out and repair and maintenance services, all from customers in Hong Kong.

Market Cap: US$7.9m

Mint Incorporation might catch your eye as a tiny Hong Kong contractor branching into AI companion robots through a joint venture, but the risk profile is heavy. The core fit out business is small at roughly US$3m in sales, the company is loss making with Return on Equity deeply negative and earnings declining sharply over recent years, and funding relies entirely on external borrowing rather than customer deposits or internally generated cash. Frequent board changes, shareholder dilution and a highly volatile share price add further uncertainty, while new robotics projects require fresh capital long before any meaningful revenue is visible. For investors watching small business lending stress, Mint currently appears more like a speculative side bet than a defensive credit exposure.

Mint Incorporation’s tiny fit out business and loss making pivot into AI robots raise a sharper question: is the balance sheet already stretched further than it looks in the headline numbers, or is there another pressure point hiding in the Mint Incorporation financial health report

Zions Bancorporation National Association (ZION)

Overview: Zions Bancorporation National Association is a Salt Lake City based regional bank that serves small and midsize businesses and consumers across Western states, offering commercial and industrial lending, commercial real estate finance, municipal and public finance, cash management, cards, retail banking and wealth management services through a network of local bank brands.

Operations: Zions Bancorporation National Association generates about US$3.4b in revenue, led by Zions Bank at US$948m, Amegy at US$761m, California Bank & Trust at US$751m, National Bank of Arizona at US$309m, Nevada State Bank at US$265m, Vectra at US$181m, The Commerce Bank of Washington at US$80m and Other at US$97m, almost entirely from customers in the United States.

Market Cap: US$9.73b

Zions Bancorporation National Association gives you a concentrated lens on small business credit in the Western U.S., where Main Street lending stress has been noted. Recent figures show net income and EPS reported as higher in Q1 2026 and a dividend yield of around 2.68%. This sits alongside discussion of rising concern over commercial and industrial borrowers, a reported 22% exposure to commercial real estate and a loan book closely tied to regional economies described as facing higher default risk. The bank has reported investment in digital capabilities, along with efforts to build out fee income and buybacks. At the same time, the small business focus that supports this strategy is also where commentary suggests almost 30% of Main Street borrowers are struggling, which raises the question of whether current credit metrics are capturing all relevant risks.

Zions Bancorporation National Association’s earnings and buybacks can easily distract from small business and commercial real estate exposure that may be shifting faster than headline metrics suggest. Before assuming the risk is fully priced in, read the analysis report for Zions Bancorporation National Association

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.