August 23, 2022
SBA Hot Topic Tuesday – Loan Volume in June 2022 Fell Almost 9% From June 2021
• As of June 2022, the PayNet Small Business Lending Index dropped by almost 9% from June 2021 showing a decreased volume of new commercial loans and leases to small businesses.
• Currently, Minnesota has seen the worst drop (down 13.1%) in new loan and lease volume.
• Montana and Nebraska are the two states seeing the highest increases in loan volume during June 2022.
• 1.26% of small business loans are considered delinquent in June 2022 according to PayNet’s Small Business Delinquency Index. This is an improvement from the same time in 2021.
• Washington D.C. and Georgia are seeing higher levels of risk compared to the rest of the country (2.87% and 1.96% respectively).
• The default rate across the country is 1.76% according to the Small Business Default Index, an improvement from June 2021.
• PayNet shows that Louisiana and New York are the states with the highest default risk.
• The forecasted commercial loan default rate is expected to increase, and the default rate is expected to be about 1.69%.