Small Business Credit Insights

Within the span of two weeks, two states in the Southeast - Texas and Florida, have been devastated by two category 5 hurricanes. It has been over a decade since the United States last fell victim to another category 5 hurricane, Katrina, which submerged New Orleans under 20 feet of water and displaced 1.3 million people to find shelter anywhere and everywhere across the U.S. However, within one year, New Orleans would see 66% of its pre-Katrina population return, and sales tax revenue climb to 84% of pre-Katrina levels.The road to recovery will no doubt be arduous, but there is also no doubt that the resilient people of these states are already marching steadfastly on that road. The recovery effort is supported by FEMA, the U.S. Federal Emergency Management Agency, which has already approved $124 million to support individuals and households in Florida and $408 million to support those residents impacted in Texas. Along with direct support for its people, the U.S. government is accepting and approving SBA loans for businesses impacted by Hurricane Irma and Harvey. As residential rebuilding plans begin, many of the people living in these regions are also employees and business owners whose places of work may also need weeks or months to rebuild, if they rebuilt at all. How quickly the area’s economy recovers has obvious implications for the people and businesses in the region, but it also has far-reaching implications for businesses that depend on the region as a source of revenue as well. Experian is looking to its wealth of business credit data to gauge the overall magnitude of the disaster and the impact to regional businesses. Nearly 1.5 million businesses in Texas are in FEMA declared Hurricane Harvey impacted counties. This represents one in three businesses in all of Texas. The businesses impacted have $10 billion in outstanding payables and represents 31% of all commercial payable balances in Texas. The businesses in the impacted regions, on average, have very similar credit profiles to the rest of the businesses in Texas, with the typical business being 10 years old, paying 7 days late, and having an Intelliscore Plus commercial credit score of 41 out of 100. In Florida, nearly all of the state has been enveloped by Hurricane Irma. 3.9 million businesses reside in Irma impacted counties, accounting for nine out of ten businesses in Florida. These impacted businesses represent 91% of total outstanding commercial payables in Florida, summing to over $26.6 billion. That is over two and a half times higher the balance potentially at risk in Texas. As of August 2017, $3 billion of the payables are delinquent, and as most businesses focus on recovery, these delinquent dollars may slide into further delinquency. Businesses in Florida are, on average, slightly over 10 years old, pay 8 days late, and have an Intelliscore Plus score of 41. From an industry sector point of view, professional and business services were hardest hit in both states, with these businesses accounting for over 40% of all businesses impacted for each state, respectively. In Texas, professional and business services owe $2 billion in payables. In Florida, businesses in this sector carried over three times that balance, owing $6.5 billion in payables, with over $700 million already delinquent. In Texas, other industry sectors significantly affected include construction and retail trade, each accounting for 16% of businesses in the impacted region, and having $7.6 billion and $9.6 billion in total payables, respectively. In Florida, retail trade businesses represent 18% of all businesses affected, and account for $2.9 billion in commercial trade balance owed. Businesses in finance, insurance, and real estate account for 12% of businesses in the impact zones, and owe $1.7 billion in outstanding balance. Construction businesses in Florida represent nearly 10% of businesses affected. As Florida has a smaller percentage of businesses in the construction industry overall compared to Texas (10.1% vs 14.5% respectively), and 90% of construction businesses in Florida are in designated impact counties, Florida may require more assistance from outside the state to support their rebuilding effort. Smaller and younger businesses in general face lower odds of continued prosperity, and these businesses are the most susceptible to the devastation of Hurricane Harvey and Hurricane Irma. The impacted areas for both states are dominated by smaller businesses, with nearly 90% of businesses having four or less employees, and almost 100% having less than 50 employees. Even though they are small, these businesses account for $8.7 billion, or 86% of payables impacted, in Texas. In Florida, these small businesses total $23.8 billion in payable balance, which constitutes 90% of all impacted payables. Many of these small businesses are young, but Florida businesses are more mature than businesses in Texas. In Florida, 3.5 businesses out of 10 have been credit active for less than six years, compared to 4 out of 10 businesses in Texas. These young businesses in Texas owe a total of $2.7 billion, while young businesses in Florida owe two and a half times that amount, at $6.9 billion. Over the next several months, Experian will measure the financial impact of businesses caught in the devastating path of Hurricanes Harvey and Irma. We will track changes in key metrics that can provide insight into the level of progression of recovery by location and type of business. Businesses integral to the recovery efforts, such as home improvement suppliers, construction companies, sanitary service companies, and the workers they employ, will undoubtedly prosper as their products and services are immediately in demand and in short supply.Younger businesses and businesses in more severely impacted regions will have a difficult road ahead. We will continue to track credit activity, such as changes in spend, utilization, new trade openings, and payment delinquency trends, to identify business sectors and profiles that appear to be rebounding, and those in further need of assistance. Subscribe to our blog for the latest updates on the business recovery progress from Hurricanes Harvey and Irma.    

As the recovery gets underway, it will take months to assess the full economic impact of the unprecedented devastation brought to South Texas by Hurricane Harvey. Thousands of residents have been displaced, and as food and shelter are delivered and residential rebuilding plans begin, many of these people are also employees and business owners whose places of work may also need weeks or months to rebuild, if they will be rebuilt at all. How quickly the area’s economy recovers has obvious implications for the people and businesses in the region, but it also has farther-reaching implications for businesses that depend on the region as a source of revenue as well. Experian looked to its wealth of business credit data to gauge the overall magnitude of the disaster and the impact to regional businesses. Nearly 1.5 million businesses in Texas are in FEMA declared Hurricane Harvey impacted counties. This represents one of three businesses in all of Texas. The businesses impacted have $10 billion in outstanding payables and represent 31% of all commercial payable balances in Texas. The businesses in the impacted regions, on average, have very similar credit profiles to the rest of the businesses in Texas, with the typical business being 10 years old, paying 7 days late, and having an Intelliscore Plus commercial credit score of 41 out of 100. Statistics for areas impacted Texas Impacted Impact % TX Number of businesses              4,823,364              1,411,583 29.27% Total balances  $ 32,334,156,000  $ 10,014,029,400 30.97% Bal 1-30  $   1,630,010,705  $      515,641,208 31.63% Average utilization 26.22 27.34   Average IPV2 Score 40.93 40.54   From an industry sector point of view, professional and business services were hardest hit, with these businesses accounting for over 40% of all businesses impacted. Professional and business services owe $2 billion in payables. Other industry sectors significantly affected include construction and retail trade, each accounting for 16% of businesses in the impacted region, and having $7.6 billion and $9.6 billion in total payables, respectively. Impacted Businesses by Industry Smaller and younger businesses in general face lower odds of continued prosperity, and these businesses are the most susceptible to the devastation of Hurricane Harvey. The impacted areas are dominated by smaller businesses, with nearly 90% of businesses having four or less employees, and almost 100% having less than 50 employees. Even though they are small, these businesses account for $8.7 billion, or 86% of payables impacted. Many of these small businesses are young, and there are two in five businesses in the impacted counties that have been credit active for less than six years. These young businesses owe a total of $2.7 billion, or 27% of outstanding payables. Impacted Businesses by Company Age Over the next several months, Experian will show the level of progression of recovery by location and type of business. To be informed when we post about this topic, subscribe to our blog.

Experian and Moody's Analytics have just released the Q2 2017 Main Street Report. Developed by Experian and Moody’s Analytics, the Experian/Moody’s Analytics Main Street Report brings deep insight into the overall financial well-being of the small-business landscape, as well as providing commentary around what certain trends mean for credit grantors and the small-business community. Q2 highlights Small-business delinquency rates experienced broad-based improvement in the second quarter. With job growth expected to continue, putting more money in consumers’ pockets, small businesses will continue to outperform in the short term. As performance on small-business loans and lines of credit improves, credit is expected to flow more freely as banks and other lenders compete for business. Although tax reform and infrastructure investment could provide an additional boost to small-business activity, consumer spending will be the driving force for small-business credit over the next quarter — and throughout the rest of the year. Business delinquencies push lower Small-business delinquencies continued to trend downward in the second quarter. Both early- and late-stage delinquency rates saw improvement over the quarter. This trend has been firmly in place over the last two years and was expected given the continued slow but steady growth in the economy. Download Main Street Report

On May 10th we hosted an episode of Business Chat | Live. This episode features an interview with Experian Director of Analytics and Consulting, Peter Bolin. Peter shared highlights from his "State of Small Business Credit" presentation, which he co-presented at our Vision Conference in Orlando with Cristian DeRitis of Moody's Analytics. Gary: Welcome to today's Business Chat Live. I am Gary Stockton with Experian Business Information Services. I'm going to be joined today by Pete Bolin, who's Director of Consulting and Analytics at Experian. Pete just wrapped up his fifth annual State of Small Business Credit at the Vision Conference in Orlando. Peter: Good afternoon Gary, thanks for having me. Gary: Thanks for taking time out of your schedule. I know you guys are busy out there. You just finished the State of Small Business Credit and you presented there with Moody's Analytics. Can you give us some high-level highlights and recap your talk? Peter: Sure, absolutely. I'd love to. One of the things that was presented today in terms of the economic analysis is that we're in very near full employment and they are projecting that the employment numbers are going to start ... the market for employment's going to get really, really tight. One of the other things in addition to that was the real estate market is coming back. He (Cristian DeRitis of Moody's) had some statistics around home prices, particularly on the West Coast rising, so that's good news for real estate market and all the businesses that serve realtors and all the small businesses that serve that space. That's great news for them. I know down here in Florida it's booming. They're experiencing a big boom in real estate as well. This overall opinion on the economy the next 18 months was very bullish. Gary: How about small business and paying their bills? Are they paying down debt, are they taking on new debt, are they taking out loans? Peter: The state of the small business market is pretty stable. Very stable. Delinquencies are down, there is some increase in demand. Some of the utilization ratios are rising, so that's starting to heat up as well. We're also seeing that some of the online market is heating up. Traditional banks are also starting to get back into that small business lending space. Funds are becoming available, the overall economy looks like it's definitely growing, and that's all good signs for a small business market. Gary as you know, small businesses overwhelmingly are the drivers of employment in the United States so all of that bodes well in particular like I said earlier, we already know that Moody's is already predicting a very tight labor market. All of those things are very, very positive for the economy. Gary: Small businesses, they are adding jobs. Are they still confident? Because I heard that their confidence was taking a bit of a dip here in the first quarter. Peter: Actually that's not what we're seeing in the economic data, that small business confidence has slightly ticked up. There was a report in ... CNBC reported just yesterday on their broadcast that they were saying that business optimism was picking up, business owners are really looking forward to the cost savings from Obamacare, so I think that helped as well because we know the Obamacare cost does tend to hit small businesses. They're very optimistic about that, so there is economic data that does suggest that the confidence of small business owners is picking up. Gary: What else did you cover in the talk? What other highlights? Peter: One of the other things that was really interesting is that we tend to say that small business, micro business, are the ones that are driving the employment, and what the data tends to suggest is that's not necessarily the case. It's more in that mid-range business. 50 employees to 100, they are the real, that medium enterprise business, they're the ones that are actually driving that. That was a little surprising to me because I thought entrepreneurs coming in, they're going to employ one, two, three and they are doing that. What the data this time around suggests is that the employment growth is really coming in that 50 to 100 employee space. That surprised me because that was something that I did not expect. Gary: The data that we speak of, this is Experian data right, that we provide to Moody's Analytics, they're the economists that help us with this research. We do this every quarter with them and they produce the Main Street Report which I'm showing up on screen here in case the audience would like to get more information. I'll put a link there. This is commercial data, commercial small business data on credit like payment trends, and also credit scores as well. Peter: That's correct. One of the things that we shared today and one of the things you're going to see in the Main Street Report, is that there are some industries that are starting to recover. For example, one of the things that the data tends to suggest is that the mining industry is coming back. Delinquencies are down, we know from looking at our newly launched in-the-market model, the business credit seeker model, that that industry is looking for credit. They're looking to expand, and given the current climate of Washington and the new administration, there's definitely a strong trend in the mining industry. Their scores are very, very high, the net worth of the owners is relatively high. Delinquencies are down. The report will show that their IPV2 scores are very high. That all bodes well for industry that's going to recover and any one lender out there is looking to target a potential industry, you might want to look at the mining industry. It's starting to come back. Gary: Agriculture as well. I've read the headlines on agriculture, they've had obviously some subsidies there that are helping. That's the one industry that's a real standout right now. Peter: Mining, agriculture is coming back. One of the things the data suggests that Chris was talking about today was he's also bullish on construction. That housing market's picking up, construction traditionally got beat up in the last couple of years. It's starting to come back. Housing's starting to pick up. More construction is starting to pick up. He's really bullish on that one as well. Gary: It sounds like you had a great talk there. I think we'll probably leave it there for now. If folks want more information they can download the latest copy of the Main Street Report and also we'll be covering additional data from the report in a webinar next month, so they can find out about that too. Thanks very much Peter for coming on and spending a few minutes with us. Peter : Thank you for having me Gary. Look forward to having everyone read that report. If you would like to be informed of new episodes of Business Chat | Live be sure to subscribe to our YouTube channel, and follow us on Twitter.    

On May 9th we hosted an episode of Business Chat | Live on our YouTube channel and enjoyed an enlightening discussion with Gavin Harding, Senior Business Consultant with Experian Business Information Services. In our chat, Gavin shared highlights from his marketplace lending panel "Bridging The Gap: Reconnecting Investors with Marketplace Lenders in a Volatile World."   Gary: We'll get started here. Welcome everybody. My name is Gary Stockton and I'm with Experian Business Information Services and we're gonna do a Business Chat Live today focusing on marketplace lending. I'm happy to be joined by Gavin Harding, and he's a senior business consultant with our business information services team on the global consulting side of the business. And Gavin is out at the Experian Vision Conference, so good morning, Gavin, or good afternoon, I should say. Gavin: Well, it's a little of both. It's morning for you and afternoon form me. Hi, Gary. Gary: So you had hosted a panel discussion yesterday called Bridging the Gap: Reconnecting Marketplace Investors with Marketplace Lenders in a Volatile World. Who was on the panel with you? Gavin: Well we had a really good industry cross section. We had Nat Hoopes who is the executive director of the Marketplace Lending Association. We had Frank Rotman who is the founding partner of QED Investors. And we had Peter Renton, who is the co-founder of LendIt, probably the biggest online marketplace lending conference worldwide. Gary: Peter Renton, he has worked on the LendIt Conference, but also Lend Academy, right? That's a resource for marketplace lending. I listen to his podcast. Gavin: That's right. Gary: We've spoken to Pete a number of times, so he's quite the expert in that field. There's been, in terms of marketplace lending and the news, there has been some negative news around the industry in recent past. Is that something that came up? Gavin: Indeed it did. Over the last 12 to 18 months, there has been a spate of negative publicity. The industry in general, the media has in a way turned on the industry on the basis of a couple of events related to specific companies in the space. The good news is that while that negative publicity had a negative impact last year, it seems that the industry has rebounded. It seems that it was a watershed moment where the industry recommitted to transparency, where they enhanced their whole approach to risk, improved their approach to operations. So if we characterize last year as perhaps a low point, the general theme of the panel was that the industry's really poised for growth, has grown up a lot over the last year. And you know, we talked a lot about credibility and trust and so on, and Nat, from the Marketplace Lending Association, you know, obviously that group started about a year ago and it has now grown to 19 members, so pretty rapid growth. When we think about the 19 members, we estimated that that covers about 90-95% of the total volume of loans and credit facilities in the space. So Nat and his team worked hard on transparency, disclosure, harmonizing standards and so forth, so it was really good to have him on the panel. Gary: And Experian, are we a member of the MLA? Gavin: We are a proud associate member, yes we are. Gary: Excellent. So let's talk a little bit about bank partnerships and what are the kinds of things you were talking about related to bank partnerships? I'm sure that was a big part of the discussion. Gavin: It was. About 24, 36 months ago is when this topic became pretty hot. Lots of conversation between banks and players in the industry. Those conversations in some very high profile ways result in partnerships. We think about Chase, we think about OnDeck. As the year has progressed, what's started to happen is, the mood within the industry has changed. Banks now expect partners in this space to speak their language in terms of risk, to be fully compliant, to understand all the rules and regulations. So the short statement is that in the last year, within the online lending space, compliance has become a competitive advantage. Compliance and operational discipline has become a selling point. So again, that's part of the ongoing theme of the industry and the sector growing up and maturing, so really positive. The one comment that I believe Frank had was as we think about partnerships with the banks, be prepared to hear no a lot before you get to yes. Be prepared to translate between the two very distinct audiences. So in terms of working with banks, use their language, understand the regulations, understand what pressures and demands are on them, and the outcome of that will be a much higher success rate and much more positive, productive conversations. Gary: Excellent. How about the sector performance overall? Is it a growing sector? The banks, I would imagine they've expressed a lot of interest in that. Are we seeing growth in that sector? Gavin: Interesting question. We talked about some of the negative publicity last year. Some of that related to some practices in parts of the industry over the last two to three years, so what's happening now is, because of a refocus and redirection towards credit risk management putting out more and better loans for appropriate returns and so forth, we're seeing the whole industry performance has really been elevated. A lot of the perhaps substandard loans or facilities have now run off, run off meaning they've matured and have been paid off. And the new business that's been put on is more sustainable. It's a more disciplined approach. So yes, overall the sector has improved significantly in terms of performance over the last year. Gary: Excellent. And so, obviously you're meeting with plenty of Experian clients there at the conference. What is this, your third or fourth Vision? Gavin: This is my third and we are here with, I think it's a little over 500 of Experian's clients globally. Many of clients from Europe, Asia, and so on so it's a really great experience. Gary: Yeah, and I saw you had Steve Wozniak, co-founder of Apple Computer as one of your keynote speakers. Gavin: That's right, that's right. On Monday morning for our breakfast presentation, we had the Woz and the big news on that, Gary, is, I know this will probably startle any listeners, that apparently Steve Jobs was not always a very nice person. So that's a newsflash there. Gary: Brilliant guy, though. You can tell I'm a customer. Gavin: Fantastic. The innovation, the dynamism was just radiating from him. He talked about some of his rules of life and he said he was never interested in money, he was interested in thinking and creating things and making things work. Somebody said, "Steve, what motivated you when you were an employee at Hewlett Packard and how does that maybe translate into what we should be doing with employees?" And Steve Wozniak said the major attraction for him at Hewlett Packard was that they let him go into their stores, their inventory, and take whatever electronic parts and components he wanted to create his own products at night. So he would talk about going home, having dinner, and going back, going into the stores, grabbing the components, and then making the products. And some of the original pre-Apple I computers were made from Hewlett Packard parts in Steve Wozniak's - he said didn't actually have a garage. It was more of a basement, but in his house. So really an interesting presentation. A really dynamic guy. We were lucky to have him. Gary: And you also had, an economic presentation by Diane Swonk I think I saw. Gavin: Diane Swonk this morning, really interesting presentation. A little bit of a different perspective than what we often see in terms of the high-level economic factors like just raw unemployment versus full employment and so on. She dug a little bit deeper but beyond that she had a couple of key messages. One of the messages is that we are almost at, depending on definition, full employment. Wages have increased over the historical averages over the last couple of years. So while the broad improvement in the economy was visible, it's only now hitting our pocketbooks. It's only now coming through in consumer spending. So that was pretty positive. She has worked a lot with both the current and past administration in terms of economic advisors and committees and so on, done a lot of work in Washington, DC. She is very much taking a wait-and-see cautious approach in terms of what the administration is saying. She confirmed that the intent or the goal investing heavily in infrastructure should have a dramatic effect on the economy overall, so she was supportive of that. The one question she had, and actually what she said was that her son on the way to school in the morning on the back of a napkin should be able to work out what the plan is to spend and at the same time reduce taxes without the other side of the equation is, to be charitable, going to require further definition. Gary: Wow, sounds like quite a conference. I'm quite envious that I'm not there to enjoy it with you this time, but maybe next time. Gavin, I really appreciate you taking time out. I know that there's a lot of people that you should be meeting with there, so I'm gonna go ahead and maybe end it right there for now. Maybe we can schedule another business chat soon. I know something's coming up with Moody's Analytics and yourself in June and the next release of the Main Street Report for Q1, so I'm excited to maybe talk about that in further detail with you very soon. Gavin: I look forward to it. Thank you very much, Gary. Gary: All right. Thank you very much.   If you would like to be informed of new episodes of Business Chat | Live be sure to subscribe to our YouTube channel, and follow us on Twitter.    

Experian has released the latest quarterly report on business credit conditions and things are looking very positive. According to the Experian/Moody’s Analytics Main Street Report, credit utilization rates expanded strongly in the first quarter of 2017. Results from the latest Experian/Moody’s Analytics Main Street Report, were presented today during Experian’s Vision Conference. The latest report shows small-business confidence levels eroding however; even though the data reveals their credit performance is going well, with steady declines in delinquencies and increases in credit balances, limits and utilization rates. Latest Experian/Moody's Analytics Main Street Report Reveals Strong Business Credit Conditions - Click to Tweet   According to the economists at Moody's, small businesses started the year on a positive note with a decline in early delinquencies (less than 30 days past due) and severe delinquencies (more than 90 days past due). We also saw single-digit gains in credit balances (up 8.8 percent) driven by strong credit utilization rates, while credit limits increased by 4.5 percent. “The market performance data and insights on trends help our small businesses and lenders make more informed decisions,” said Gavin Harding, senior business consultant for Experian. “So while we see that delinquencies are declining and credit limits and utilization rates among small-businesses owners are increasing, we also understand that small businesses don’t have adequate credit to expand at their desired pace. If economic conditions continue to improve this year, we should see financial institutions start to increase credit availability for small-business owners.” Agriculture stands out as an industry bright point, despite four years of declining income for farmers. Performance in the manufacturing, transportation and public administration industries, however, wasn’t as strong. Other sections in the Q1 2017 report include a detailed analysis of: Small-business risk assessment strategies States ranked by their rate of severe delinquency Potential impacts from policy changes Credit quality in different industries A forecasted outlook for the coming months        

Today Experian released the Q4 2016 Experian/Moody's Analytics Main Street Report. The report offers deep insight into the overall financial well-being of the small-business landscape, as well as providing commentary around what certain trends mean for credit grantors and the small-business community as a whole. Delinquency Rates Decline Sharply Small business delinquency rates fell throughout 2016 at a slower pace compared to 2015. Q4 saw a sharp decline in delinquency across multiple industry sectors. Oil pricing may be what's drivingThis was likely due in part to OPEC's announcement to cut supply over the next several months. Small Businesses Feeling Confident as Balances Increase Q4 loan balances increasing 7.7 percent from the third quarter and 10.3 percent from last year. Despite this activity, utilization remains below 40 percent, leaving plenty of capacity for businesses to expand using available credit. Business sentiment among business owners remains positive with the National Federation of Independent Business Owners reporting a sharp increase in small-business owner confidence in November and December. Nevada Roars Back Nevada was particularly hard-hit during the Great Recession. Small businesses in the state have struggled with credit ever since. In the fourth quarter Nevada's severe delinquency rate fell to 8.94 percent, the lowest level observed in the available history for the state. Eight of eleven industries in Nevada saw delinquency rates decline from the third quarter of 2016. Experian has published the contents of our report in an interactive web page, complete with interactive charts and graphs.      

We know that small business is the heart of the U.S. economy, driving the majority of private-sector employment. But just how successful in managing credit is the average small business owner compared with the average consumer?  In a new data study titled The Face of Small Business, Experian examines key credit and demographic attributes of both groups and uncovered distinct differences. Experian presented the full research from our data study in a webinar recently. Watch Webinar Experian took a random sample of 2.5 million small businesses and 1 million consumers to base the research. Findings show that small-business owners outpace consumers when it comes to credit management. For example, the average personal credit score for a small-business owner is 721 — 48 points higher than the average consumer score of 673. Small-business owners also have a higher amount of available credit, with an average credit limit of $56,100; while consumers have an average credit limit of $26,900. Debt load, however, is also higher for small-business owners, with the average total balance of all trades being $195,000 versus $96,000 for consumers. Small business owners have higher monthly payment obligations with an average payment of $2,032 compared to $954 for consumers. Despite these differences, only a relatively small percentage of small-business owners (5.9 percent) have one or more revolving bankcard trades that are 90-plus days beyond terms in the past 24 months compared with 7 percent of consumers. Download our Infographic “Since the health of small business tells the tale of how the overall economy is performing, it is encouraging to see that while small-business owners have an exceptional amount of credit available to them and carry a higher debt load, they have done a great job managing their payment obligations and keeping utilization low. In order to explore possibilities and pursue opportunities, consumers and small-business owners alike need to master the credit management skills that will allow them to achieve their dreams — whether that dream is to start or expand a business or to finance a new home or vehicle.” Pete Bolin Director of Consulting and Analytics Experian Demographic differences In terms of demographic characteristics, small-business owners are more likely to own a home and have a higher income than the average consumer. For example, the average income for small-business owners is $91,600 versus $70,400 for consumers. Also, 62 percent of small business owners own a home compared with only 47 percent of consumers. Small-business owners tend to be a bit older and are more likely to have pursued higher education than the average consumer. The average age of a small-business owner is 56, and the average age of a consumer is 51. From an education perspective, 68.6 percent of small business owners have attended some college and beyond, while only 53.5 percent of consumers have done so. Other highlights from the report: The average mortgage balance for small-business owners is $192,000 versus $147,000 for consumers. The average number of open trades for small-business owners is 7.4 versus 4.4 for consumers. The balance-to-limit ratio for small-business owners is 29.5 percent compared with 30.1 percent for consumers. A higher percentage of small-business owners are married, with 68.3 percent having tied the knot versus 53.4 percent of consumers. The average gender breakdown for small-business owners is 65.6 percent male and 31.2 percent female. For consumers the mix is more equal, with 46.4 percent female and 47 percent male.

Latest Main Street Report findings offer cautious optimism as small business bankruptcy rates and delinquencies decline Experian has released the Q2 2016 Experian/Moody's Analytics Main Street report. The report offers a unique quarterly snapshot into the health of small business credit in the United States. The report states current credit conditions for small businesses are improving across most of the country. Overall small-business delinquencies decreased slightly from last quarter, with dropping levels in every stage of delinquency. The total bankruptcy rate fell as well, although at a slower pace than the previous year. "Small business owners have done a great job of managing their financial commitments and paying their bills on time over the past few quarters. This has led to an increased level of available capital which could enable them to expand or invest in their business to grow their enterprise. It will be very interesting, however, to watch the current trends unfold throughout the rest of the year as administration and potential policy changes, as well as the impact of Brexit and other global events could affect U.S. business behavior." Gavin Harding Sr. Business Consultant, Experian "Small businesses are doing well, and their near-term prospects are good. Delinquencies and bankruptcies are steadily declining, reflecting solid sales, low interest rates, and generally light debt loads. The only blemish is for businesses in the still struggling energy and related industries." Mark Zandi Chief Economist, Moody's Analytics   While current conditions enable small businesses to have an abundance of credit available to them, the average utilization rate was down almost 22 percent from the same period in 2015. The report found that this decline is the result of a slight increase in credit limits and a steady increase in balances. Other Q2 2016 highlights: The mining industry experienced the sharpest increase in severe delinquencies and bankruptcies across all industries in the second quarter. The transportation and utility industries also experienced a decline, with the average severe delinquency rate increasing by 30 basis points during the quarter. Construction has seen the strongest improvement, with severe delinquencies dropping by nearly one third in the last year and a half. Construction bankruptcy rates, however, remain high in West Virginia and New Mexico, with rates of 0.59 percent and 0.44 percent, respectively. Bankruptcy rates along the Eastern Seaboard tend to be below the national average. About the Experian/Moody's Analytics Main Street Report Developed by Experian and Moody’s Analytics, the Experian/Moody’s Analytics Main Street Report brings deep insight into the overall financial well-being of the small-business landscape, as well as provides commentary around what certain trends mean for credit grantors and the small-business community as a whole. Key factors comprised by the Main Street Report include a combination of business credit data (credit balances, delinquency rates, utilization rates, etc.) and macroeconomic information (employment rates, income, retail sales, investments, etc.)