Small business spending fell sharply for the second straight quarter due to a significant drop in revenues caused by pandemic lockdowns. Additionally, many small businesses shifted their spending to debit cards.
Spikes in COVID-19,that began toward the end of June, paused reopenings and created more uncertainty for the future.
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 to borrowing on their credit card.
This follows a general trend across the economy of large declines in revolving debt.
Read the full report