WASHINGTON, DC – Small business spending fell sharply for the second straight quarter due to a significant drop in revenues caused by pandemic lockdowns as spending shifted to debit cards. With spikes in COVID-19, that began in June, a general reopening of the economy was paused, thus creating more uncertainty for the future. According to the Independent Community Bankers of America, outstanding balances on Visa small business credit cards dropped 7.8 points, as businesses decreased spending overall and preferred borrowing funds through SBA-led programs or traditional bank loans. This follows a general trend across the economy of large declines in revolving debt.
(SOURCE: Independent Community Bankers of America)