News: General News

Small-Business Credit Conditions Remain Positive

Tuesday, February 25, 2020   (0 Comments)
Posted by: Tim Dressen
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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.”