Small Business Lending Trends

  • Small Business Lending Trends - 2nd Quarter, 2020

    Tuesday, June 30, 2020

    Overall Observations

    In the most recent quarter, we begin to see the impacts of the COVID-19 pandemic on small business lending in the United States. SBFE observes delinquency peaking in early Q2 2020 for most account types, while charge-off figures increased late Q2, specifically for unsecured account types. The data also illustrates possible effects of COVID-19 assistance programs and an influx of dollars as small businesses’ average balances have declined for revolving debt throughout Q2 2020.

  • Small Business Lending Trends - 1st Quarter, 2020

    Tuesday, March 31, 2020

    Overall Observations

    All metrics indicated more movement than previous periods as small businesses began to feel the effect of COVID-19 late in Q1 2020. Delinquency and utilization in particular were stressed which we suspect was due to short term business closures affecting many regions/industries. As the small business community continues in this period of uncertainty, Q2 should provide valuable insight on expectations for how rapid a rebound may be, or if the current climate will be more prolonged.

  • Small Business Lending Trends - 4th Quarter, 2019

    Monday, December 30, 2019

    Overall Observations

    Delinquency and charge-off metrics have remained consistent over the reported 24 month period. However, we have seen noticeable movement with the utilization metrics, specifically decreasing limits and balances. This may signal some tightening by lenders and small business borrowers. This change will need some additional time of observation to determine if a trend is forming or if this was a temporary movement. 

  • Small Business Lending Trends - 3rd Quarter, 2019

    Monday, September 30, 2019

    Overall Observations

    For the 3rd quarter, the data indicates performance again remains steady across the three key metrics over the 24 month period. SBFE Data continues to show that credit utilization remains fairly consistent while both balances and limits are increasing. Delinquencies have maintained a fairly steady rate over the reported period with term loans reaching a low point for the past two years. Charge-offs were almost unchanged over the final two quarters of the period and fairly consistent over the entire reported period.

     

  • Small Business Lending Trends - 2nd Quarter, 2019

    Friday, June 28, 2019

    Overall Observations

    Our data indicates small business credit performance, on a quarterly basis across three key metrics, continues to remain relatively consistent over the two-year period. Credit utilization has remained fairly level during the period with a slight upward trend over the three months of the second quarter of 2019. In the second quarter, delinquencies reversed the trend of slow increase over the past year falling back below 4% by the end of June. Alongside dropping delinquency rates, charge-offs exhibited a small decrease during the second quarter of 2019, ending slightly above a quarter of a percent in losses.