This analysis explores the evolving risk dynamics of the SBA loan portfolio by focusing on three key objectives:
Analyze Predicted Losses: Predicted losses for FY 2025 are compared against those from FY 2024 to identify prevailing risk trends.
Pinpoint Risk Concentrations: Specific segments of the SBA portfolio— categorized by loan size, business age, or industry sector—are examined to determine if they are showing heightened concentrations of credit risk.
Examine Influencing Factors: Changes in the underlying factors shaping portfolio risk, including borrower characteristics, loan structures, and broader economic conditions, are investigated.
