After a rocky third quarter of 2019 for small business credit conditions, the year ended with stability, according to the latest Main St. Report from Experian and Moody’s Analytics. Highlights include:
Small business borrowing slowed, causing delinquency to increase slightly.
The bankruptcy rate remained stable, thanks in part to new borrowers.
Small Business Administration loan charge-offs have declined, while approvals have increased.
Agriculture and manufacturing industries experienced greater delinquencies than many others, fueled largely by trade issues.
“The fourth quarter of 2019 was a return to ground after a wild third quarter but capped a remarkably stable year for small-business lending,” the report concluded. “Overall, small businesses are entering 2020 in a sound financial condition, which will pave the way for 2020 to be another year of solid performance and moderate growth.”