Second Round of PPP Lending Drives Increases in Outstanding and New

The percentage of outstanding small business C&I loan balances secured by the SBA rebounded from 40 to 45 percent, following a decline in the fourth quarter of 2020 related to the close of the PPP lending program and increased loan forgiveness. [...] Balances on new small business C&I loans increased 444.1 percent in the first quarter compared with the previous quarter, driven by an increase of 622.7 percent in new small business C&I term loans, due primarily to the resumption of PPP lending in January. [...] Use of fixed rate small business C&I lines of credit decreased from 40.7 percent in the fourth quarter of 2020 to 38.2 percent in the first quarter of 2021, while variable rate small business C&I credit line usage decreased for a fourth consecutive quarter to 30.2 percent. [...] The percentage of respondents indicating a change in credit line usage, whether an increase or decrease, increased from 36 percent in the fourth quarter of 2020 to 38 percent in the first quarter of 2021. [...] About 20 percent of respondents reported a change in credit standards in the first quarter of 2021, down about 4 percent from the fourth quarter of 2020.