<img height="1" width="1" src="https://www.facebook.com/tr?id=219321095174292&amp;ev=PageView &amp;noscript=1">

Share this article:

Highlights from the Q4 2019 Main Street Report on small business credit

February 24, 2020 by Gary Stockton

Experian and Moody's Analytics have just released the Q4 2019 Main Street Report. The report brings deep insight into the overall financial well-being of the small-business landscape, as well as offer helpful commentary, around what trends mean for lenders and small-businesses. 

The fourth quarter of 2019 was a return to ground after a wild third quarter, but it capped a remarkably stable year for small-business lending. Small businesses slowed their borrowing activity, causing delinquency to rise marginally, pushing 31–90 day past due balances up by 7 basis points to 1.6 percent, from 1.53 in the third quarter.

 

# DPD

18Q4

19Q3

19Q4

Moderately delinquent

31–90

1.68%

1.53%

1.60%

Severely delinquent

91+

3.49%

2.81%

2.69%

Bankruptcy

 

0.16%

0.16%

0.16%

Download the latest Main Street Report

The bankruptcy rate was essentially flat from Q3 to Q4, rising to 16.1 basis points from 16. A flood of new borrowers helped contain movement in the bankruptcy rate.

Moody’s uses data from the Bureau of Labor Statistics to benchmark business growth numbers. The last time this was reported, BLS reported a 2.8 percent growth rate in Q2. Growth in the number of establishments picked up in the latter half of 2017, as did growth in small business borrowing, and this has helped to keep bankruptcy rates from rising.

msr-bk-q4-2019

Finally, the Federal Reserve’s Senior Loan Officer Survey, indicates lenders aren’t seeing higher than usual demand for Commercial & Industrial loans. Lending to both small and medium-to-large firms has failed to see net positive demand, since the first quarter of 2017, this despite the addition of a 25-year loan option from the Small Business Administration.

msr-loan-officer-survey-q4-2019

Hear the analysis behind the report 

If you would like to get the full analysis of the data behind the Main Street Report, join the experts from Experian and Moody’s Analytics for the Q4 Quarterly Business Credit Review.

Register for the Quarterly Business Credit Review

 

 

 

Subscribe to our blog

Share this article