THE EQUIFAX NOVEMBER SMALL BUSINESS LENDING INDEX (SBLI) showed that nominal small business lending volumes were flat month-over-month and decreased 4.3% year-over-year. The SBLI three-month moving average increased month-over-month by 1.1% and decreased 5.2% year-over-year.
Meanwhile, the Equifax Small Business Delinquency Index (SBDI) 31-90 Days Past Due decreased 3 bps to 1.78% in November 2024. The 31-90 DPD metric is up 6 basis points from November 2023. The SBDI 91–180 Days Past Due held steady at 0.70% from October to November 2024. The Small Business Default Index declined slightly to 3.40%, down 3 basis points month-over-month.
According to the latest report, the Equifax SBLI suggests that small business lending activity was flat month-over-month in November while the three-month-moving-average ticked up for the first time since April. Meanwhile, defaults and delinquencies were either flat or falling in November, potentially a positive sign for both lenders and small businesses. The U.S. economy entered 2025 on a high note with solid Q3 growth of 3.1% and a reasonably strong expected growth rate of 2.4% in Q4 to round out 2024. While the current outlook is optimistic, it is possible that there could be fewer rate cuts and tighter lending conditions in 2025 than anticipated a few months ago.
In November, 35 states had a year-over-year decrease in 12-month rolling lending volumes. Of the ten largest states, seven showed a decrease from 2023. Georgia decreased 10.5%, California dropped 7.9% and Texas 5.7%. Illinois and Ohio both showed over 3% growth from last year. Of all states, South Carolina (+12%) and Iowa (+9%) had some of the highest growth numbers over last year. Nevada (-16%), Wyoming (-13%), and Washington (-11%) posted some of the largest decreases from November 2023.
Month-over-month, 31 states showed decreased nominal lending activity in the preceding 12 months, including five of the ten largest states. California (-1.6%) and North Carolina (-0.9%) had the largest decreases of these ten in the 12-month period ended in November 2024 as compared to the 12 month period ended in November 2023.
Defaults increased in 50 states annually and in 18 states month-over-month. Georgia improved 3% from last year, while all other states showed increases. Minnesota had the largest increase at +60% from last year. Florida (4.72%), Texas (4.31%), and Louisiana (4.28%) had the highest overall default rates amongst all states. North Dakota (2.01%) and Minnesota (2.27%) had the lowest. Of all states, Virginia increased the most from last month at +5%. Of the ten largest states, four increased default rates over last month. North Carolina increased 2% and Pennsylvania increased 1% while Georgia improved 5% and New York improved 4%.
In 31-90 day delinquency, 22 states had an increase in delinquency month-over-month. Delinquency metrics remain elevated with 32 states increasing their delinquency rates from last year (including 6 of the 10 largest states). Florida (2.9%), Georgia (2.8%), and Alabama (2.5%) have the highest delinquency rates in November 2024, while South Dakota (0.67%) and North Dakota (0.9%) have the lowest. Montana showed the largest annual increase in delinquency, rising 120 basis points since last November. Of the 10 largest states, New York (15 bps) , California (11 bps), and Texas (11 bps) had the largest year over year increases. Georgia had the largest decrease in 31-90 days past due rates from November 2023, down 12 bps.
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