Small businesses increased hiring for the holidays funded by credit while servicing their outstanding debts. The moderately delinquent balances for small businesses declined to 1.21 percent in the fourth quarter from 1.60 percent at the same time last year. Taxes are a rising issue for small businesses, but increasing concerns here did not dampen borrowing or hiring in the fourth quarter. The availability of credit has cushioned the blow of the pandemic for now and a third stimulus will help insulate small businesses from altered consumer spending patterns.
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. Key factors in the Main Street Report include a combination of business credit data (e.g., credit balances, delinquency rates, utilization rates) and macroeconomic information (e.g., employment rates, income, retail sales, industrial production).