To read the full post, please go to: https://www.ocrolus.com/blog/new-analytics-for-small-business-lending/

As cities, states, and the nation reopen, small business’ access to capital will be a critical ingredient in recovery.  The colossal pandemic of COVID-19 has had a wide-ranging impact on public health, civil society, and the economy.   In the world of financial services and financial technology, companies lending to small businesses were among the hardest-hit. Most lenders severely curtailed their operations, with many pausing non-government-backed lending completely.   This historic pandemic has revealed countless truths, among them the insufficiency of credit data and the need for small business lenders to adopt a deeper, more data-driven, and more personalized approach to risk management.  In this post, we outline several analytical principles for recovery, with data sources and metrics that are likely to be useful for lenders seeking to restart with confidence.