ABC and SBFE report examines positive impact of relief, assistance programs on delinquency and credit trends


The Consumer Bankers Association (CBA) and the Small Business Financial Exchange (SBFE) released a report determining that several rounds of federal lender assistance and assistance programs have had a positive impact on delinquency and utilization rates. credit.

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The analysis of small business lending trends focuses on the second quarter of 2021, providing a breakdown of credit information for small businesses nationwide, particularly the various rounds of federal lender assistance and assistance programs. .

“We see reasons for optimism over the past few quarters,” noted the authors of CBE-SBFE Small Business Lending Trends in the report’s Global Observations. “The new count as a percentage of all accounts reached pre-pandemic levels in early 2021 and continued to increase until the end of the second quarter. This indicates that small businesses are getting credit facilities, which often indicates that they are planning to grow. The data also shows a slight increase in the use of commercial card accounts during the 2nd quarter of this year. This type of change also typically signals that businesses are preparing for revenue growth. Overall, the current state of the small business ecosystem can be described as healthy but limited. “

The report determined that delinquency continued to decline for all account types in the second quarter of 2021. It is currently at its lowest point in the period analyzed for all account types; credit usage increased from the first quarter of 2021. Officials attributed the increase to greater use of commercial cards; and charge rates declined in the second quarter of 2021 for all types of accounts – except term loans.

The report provides data on defaults, credit utilization and credit utilization by account type, with the data used to compile the breakdown, including figures collected from SBFE members regarding small businesses and payment performance on commercial credit accounts.

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