More Businesses, New Risk Signals: Rethinking Small Business Credit

The U.S. small business population has expanded significantly since the pandemic, with much of that growth coming from sole proprietors. For CROs and credit risk teams, this changing borrower profile creates both opportunity and new considerations. Rising early-stage delinquency and higher business card utilization suggest potential cash-flow pressure, while late-stage delinquency remains relatively close to larger firms. The takeaway: lenders should closely monitor multiple risk signals and ensure their segmentation, underwriting and portfolio management strategies evolve alongside the small business market.