CBA, SBFE Release Quarterly Small Business Lending Data

CBA, SBFE Release Quarterly Small Business Lending Data

Report covers onset of COVID-19 pandemic

WASHINGTON – The Consumer Bankers Association and Small Business Financial Exchange today released the Small Business Lending Trends report covering the first quarter of 2020. The report, which is released quarterly, examines key credit information for America’s small businesses and each area examined shows higher movement as the COVID-19 pandemic began having an economic impact in the United States.

Key findings from the report, which examined data from Q1 2020, include:

• Delinquency and utilization in particular were stressed which we suspect was due to short term business closures affecting many regions and industries.
• Delinquencies increased across credit types, including commercial card, line of credit, open ended / revolving and term. The past quarter marked the highest delinquency point since the start of the survey in Q1 2018.
• Both credit limits and balances declined to the lowest point since the start of the survey, with balances declining at a greater pace than limits. This led to an overall decline in credit utilization.
• Charge-offs increased for accounts extending open credit but dipped for collateralized loans. Overall, however, charge-offs declined.

A full copy of the report is available here.

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

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

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.

About SBFE:

The Small Business Financial Exchange, Inc. and SBFE, LLC (collectively known as SBFE) is one of the country's leading sources of small business credit information. Established in 2001, the trade association's database houses information on over 38 million businesses and enables information exchange among Members who provide small business financing. By providing industry insight and an aggregated view of small business financial data to its Members, the SBFE model enables innovative risk management solutions through its strategic relationships. SBFE is the only Member-controlled organization of its type and is serving as a trusted advocate for the safe and secure growth of small business. For more information, visit www.sbfe.org.