Thai SMEs face deepening financial stress: SME credit contracted for 15 consecutive quarters through Q2 2026, now declining 5.6% year-on-year. Problem loan ratios (Stage 2 + Stage 3) remain elevated at 25.59% and rising, indicating structural challenges in business viability, cash flow, and ability to service debt. The Bank of Thailand is escalating the SME Credit Boost guarantee program in partnership with the Ministry of Finance and Thai Credit Guarantee Corporation (TCGC) to expand lending, but banks remain cautious due to weak debt servicing capacity and overall business sustainability concerns—not just collateral availability.