CBA, SBFE Small Business Data Highlights Encouraging Q2 2021 Delinquency & Credit Utilization Trends

October 26, 2021
Billy Rielly

 

The Consumer Bankers Association and Small Business Financial Exchange today released the Small Business Lending Trends analysis covering the second quarter of 2021. The analysis, which is released quarterly, examines key credit information for America’s small businesses and found multiple rounds of federal relief and lender assistance programs have had a positive impact on both delinquency and credit utilization rates.

Key findings from the analysis, which examined data from Q2 2021, include:

  • Delinquency continued to decline for all account types in Q2 2021 and is at its lowest point in the analyzed period for all account types.
  • Credit utilization increased slightly from Q1 2021 due to greater utilization on commercial cards, which have seen an uptick in balance even as limits have remained consistent. Q2 2021 marked the first increase in utilization since the start of the pandemic.  
  • Charge-off rates declined in Q2 2021 for all account types except term loans, whose losses have been at a higher-than-normal level of the last two quarters.

A full copy of the analysis is available HERE.

The CBA-SBFE Small Business Lending Trends analysis offers 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.