Consumer Bankers Association (CBA) and Small Business Financial Exchange (SBFE) report findings maintain supply chain disruptions, labor shortages, and inflation continue to negatively impact the small business lending dynamic.
The Q4 2021 Small Business Lending Trends analysis showed delinquency rose slightly for most account types; credit utilization rose slightly from the low point in March 2021 but remains below pre-pandemic levels; and charge-off rates decreased for all account types during the quarter.
The report, compiled from data collected from SBFE members on small businesses and their payment performance on commercial credit accounts, reflected unsecured account types have leveled off after higher losses seen at the height of the COVID-19 pandemic.
“As we look forward to 2022 results, we expect continued impact from supply chain and labor issues,” the CBA and SBFE wrote. “New pressures from historic levels of inflation, which are continuing to rise, interest rate hikes to combat inflation and global geopolitical volatility will likely have a negative effect.”
The CBA provides leadership, education, research, and federal representation for its members, including the nation’s largest bank holding companies and regional and super community banks.
The SBFE indicated the trade association for small business lenders seeks to serve as an advocate for safe and secure small business growth by gathering and protecting the largest aggregation of small business payment data in the nation – and leveraging the power of that data to aid in building an accurate small business picture.