By Bob Coleman
SBA loans are performing at historical low delinquency and charge-off rates.
I am going to let this chart do all the work this morning.
Check out the falling SBA 7(a) and 504 delinquency and charge-off rates from SBA’s 2014 annual report.
Delinquency rates for the 7(a) program likewise declined from the 3.9 percent recorded during January 2009 to 1 percent recorded during July 2014.
Delinquency rates for the 504 program likewise declined from the 5 percent recorded during February 2010 to 1 percent recorded during July 2014.
Charge-off rates for the 7(a) program experienced a pronounced decline during the FY 2010-2013 period, declining from 4.3 percent during the fourth quarter of 2010 to 1.1 percent in the fourth quarter of 2013.
However, SBA 7(a) then experiencing a minor uptick thereafter, posting a 1.7
percent rate in July of 2014.
The charge-off rate for the 504 program experienced a continuous rise from the latter part of FY 2008 to the early part of FY 2013, peaking at 4.4 during January 2013, but then recorded a pronounced decline thereafter, dropping to 1.5 percent during July of 2014.