Small Business Loan Delinquencies and Defaults Continue to Rise Says Equifax

Equifax Main Street Lending Report
October 2024
Small Business Lending Report

Says Equifax. . . .

Small Business Lending activity was dampened again in August, according to the latest Equifax SBLI reading. The Federal Reserve’s decision to lower interest rates by 50 basis points in September — with additional cuts likely on the way — should provide a boost to lending activity, though perhaps not until next year.

In the face of rising uncertainty, small business owners have adopted a “risk-off” posture that has likely held back lending activity in recent months. However, unease surrounding the labor market, geopolitical conflict, and the 2024 election is tempered by the strong September labor report and an upwards revision to consumer disposable income.

Of particular concern is the Small Business Delinquency and Default indices continue to increase since the expiration of PPP and EIDL loans.

Another way to view the data is small business lending performance is declining throughout the country.