CBA, SBFE Small Business Data Highlights Stabilizing Effects of PPP, Short-Term Delinquency Trends

Lauren Bianchi

CBA, SBFE Small Business Data Highlights Stabilizing Effects of PPP, Short-Term Delinquency Trends

 

WASHINGTON – The Consumer Bankers Association and Small Business Financial Exchange today released the Small Business Lending Trends analysis covering the fourth quarter of 2020. The analysis, which is released quarterly, examines key credit information for America’s small businesses and shows delinquency peaking for most account types as the COVID-19 pandemic continued to affect the lending industry throughout 2020.

 

Key findings from the analysis, which examined data from Q4 2020, include:

 

  • Delinquency increased for nearly every account type in Q4, after a decline in Q3. We believe a significant contributing factor is the end of key financial assistance programs in Q3. 

 

  • Credit utilization remained steady between Q3 to Q4 after a fairly significant slide in the first half of 2020. Utilization rates continue to remain near three-year lows. 

 

  • After peaking in Q2, charge-off rates for traditionally unsecured account types continued to improve in Q4. There was a slight increase in collateralized loan types in Q4, which aligns with delinquency trends as well. As expected, 2020 charge-off rates continue to trend above previous years.

  

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.

 

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