Small Business Loan Delinquencies Edge Up Across CDFI Portfolios, Survey Finds
Thirty-day delinquency rose for the third straight quarter, though net charge-offs remain below conventional lender benchmarks.
Delinquency rates on small business loans held by CDFIs rose modestly in the third quarter, according to a quarterly survey of loan funds and community development banks.
By the numbers
- 30+ day delinquency: 4.1%, up from 3.6% a year earlier
- Net charge-offs (annualized): 1.2%
- Respondents: 214 CDFIs
Portfolio performance
| Segment | 30+ day delinquency | Year-over-year |
|---|---|---|
| Microloans (< $50K) | 6.3% | +0.8 pts |
| Small business ($50K–$250K) | 3.9% | +0.4 pts |
| Commercial real estate | 2.2% | +0.1 pts |
Analysts attributed most of the increase to microloans made to businesses in their first two years of operation, a segment particularly sensitive to higher input costs.
Context
Even with the increase, net charge-offs remain well within historical ranges for mission lenders, and respondents reported strong demand for technical assistance paired with credit.
Sources
- Opportunity Finance Network, CDFI Market Conditions Survey, Q3 2026
- Federal Reserve Banks, Small Business Credit Survey
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