C-Suite Wednesday – Coleman’s First Small Business Lender Index Results

March 29, 2023

Delaney Sexton
Editor

C-Suite Wednesday – Coleman’s First Small Business Lender Index Results

Thanks to all the participants of the first Coleman Small Business Lending Index survey! These are the results from the month of March.

Loan Originations

When asked about loan origination opportunities at their financial institution, almost half of the respondents reported that loan originations increased in the last six months. At the other end of the spectrum, over 28% said that loan originations have decreased in the last six months.
• 15% of participants reported that their institution’s loan originations were unchanged.
• Half of the participants reported loan origination increases of up to 25%.
• 30% reported that their institution’s loan originations decreased by up to 50%.

Past Due Loans

Participants were asked about their institution’s past-due loan rate. None of the respondents reported that past-due loan rates declined. Instead, about 70% reported that past-due loan rates stayed the same, and about 30% reported an increase.
• A quarter of the lenders stated that their institution’s past due loan rate is up by 1-10%.
• 10% reported an increase in past due loans by 11-25%.

Business Acquisition Loans

Business acquisition loans appear to be on the rise with 57% of respondents answering that business acquisition loans have increased in the last six months. 38% reported that business acquisition loans have been the same, and less than 5% reported that business acquisition loans at their financial institution have decreased in the last six months.

Underwriting Standards

According to those that took the survey, underwriting standards are not becoming more relaxed. Instead, almost 43% stated that underwriting standards have tightened, and the remaining 57% reported their underwriting standards have stayed the same.

Hiring for SBA Lending Positions

Just under half of lenders answered that there are open SBA positions at their organization. Of those with open positions, about a fifth have five or more open SBA positions, and the other four-fifths have one to three positions open. Lenders in Southern states reported open positions more frequently than any other region, and Western states reported open SBA positions the least.

Lenders are experiencing difficulties when hiring SBA team members. Two-thirds of respondents reported hiring difficulties when trying to fill SBA positions. Under 5% reported that hiring SBA team members has been easier for their institution.