CBA, SBFE Q3 2022 Small Business Lending Data Reflects Impact of Rising Interest Rates

January 12, 2023

The Consumer Bankers Association (CBA) and Small Business Financial Exchange (SBFE) today released the Q3 2022 Small Business Lending Trends analysis, examining key credit information for America’s small businesses. While the report found that metrics for the period are returning closer to pre-pandemic levels, external factors including consistent rate increases continue to impact lending behavior for the sector.    

Key Findings

  • Delinquency increased for all account types, marking a reversal from a downward trend seen over the prior six quarters. Even with increased delinquency, rates remain well below figures from early in the pandemic. 
  • Credit utilization continues to increase on a quarterly basis and is currently at its highest point in the post-pandemic environment. At the same time, card limits are at their lowest point for the analyzed period. 
  • Charge-offs remained stable when compared to the previous quarter. Unsecured account types have leveled-off after higher losses experienced during the pandemic.

Why It Matters

  • As policymakers continue to raise interest rates to combat ongoing inflation, the impact of these decisions on America’s small businesses is increasingly evident. These external pressures, in addition to uncertain economic conditions ahead, have clearly influenced the type of credit small businesses are seeking to obtain and their payment behavior on active accounts. 

A full copy of the analysis is available HERE.

About The Report

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. To learn more and review reports from prior quarters, click HERE.