- CBA on
- CBA Media
- Small Business
Small Business Lending Trends
Small Business Lending Trends - 1st Quarter, 2021Wednesday, March 31, 2021
Over the past 12+ months, starting late in Q1 2020, there have been significant changes in small businesses’ need for funding and how they have been able to satisfy those needs. These factors resulting from impacts of the COVID pandemic, uncertain economic conditions, and various financial assistance programs caused credit trends to change during the last 3 quarters of 2020. The changes in both direction and scale would not have been expected based on trends in periods prior to the pandemic.
Small Business Lending Trends - 4th Quarter, 2020Thursday, December 31, 2020
In the fourth quarter of 2020, the impacts of the pandemic continued to weigh on the small business community . The liquidity infusion provided by Paycheck Protection Program (PPP) and other assistance programs continued to stabilize certain measurements as the year ended. However, as the initial round of PPP funding ended in the 3rd quarter, key delinquency metrics began to rise. These signs of stress on the industry may be short lived as the second round of PPP funding begins early in 2021 and other assistance efforts begin rolling out in the same time period.
Small Business Lending Trends - 3rd Quarter, 2020Wednesday, September 30, 2020
The third quarter has shown some interesting trends as government assistance programs such as the Paycheck Protection Program (PPP) stopped dispersing new funds. While changes during Q3 2020 appear positive in nature, some of these numbers may still be supported by liquidity infusion provided by PPP and other programs as well as assistance measures offered by lending organizations to borrowers. The fourth quarter and early 2021 should provide a more clear view of the long-term outlook, but this may be further delayed if additional rounds of assistance are approved.
Small Business Lending Trends - 2nd Quarter, 2020Tuesday, June 30, 2020
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, 2020Tuesday, March 31, 2020
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, 2019Monday, December 30, 2019
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, 2019Monday, September 30, 2019
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, 2019Friday, June 28, 2019
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.