CBA, SBFE Q1 2022 Small Business Lending Data Signals Optimism Amidst Ongoing Economic Uncertainty

The Consumer Bankers Association (CBA) and Small Business Financial Exchange (SBFE) today released the Q1 2022 Small Business Lending Trends analysis, examining key credit information for America’s small businesses. The report signaled reasons for optimism amidst ongoing economic uncertainty, highlighted by new account growth which now exceeds pre-pandemic levels.

Key Findings

• Delinquency trended lower for most account types in Q1 2022, continuing a downward trend seen over the past five quarters.
• Credit utilization remained fairly flat overall but is anticipated to trend upwards in the months ahead.
• Charge-off rates declined for all account types in the quarter. Specifically, unsecured account types have leveled off after higher losses seen at the height of the pandemic.

Why This Matters

• The small business ecosystem remains stable despite the waning economy.
• Data showing new account growth rising to the highest level in three months indicates small businesses are no longer employing more conservative pandemic-related spending tactics and instead are preparing for growth.
• Looking ahead, external factors, including rising interest rates, will continue to play a large role as to whether this positive trend continues through the rest of the year.

A full copy of the analysis is available HERE.

The CBA-SBFE Small Business Lending Trends analysis offers quarterly data on delinquencies, credit utilization and credit utilization by account type, and charge-off rates. In addition to the data, the analysis offers a brief breakdown of each data set.

The data used to compile the analysis includes information collected from SBFE members on small businesses and their payment performance on commercial credit accounts.