The parameters wouldn't necessarily be established on that, but I will tell you that a riskier loan would be one where the small business is a start-up. It doesn't have any collateral. It doesn't have any credit history. With it being a start-up with very little money to put into the game.... The banks have these credit-scoring models that they assess risk with. It could be the industry sector; there are certain industry sectors that are a little more risky than others. The types of assets that are being financed could be a little riskier than others. If you're financing real property, for example, that's a lot less risky than if you're going to finance leasehold improvements in the accommodation, food and beverage services sector.
On May 17th, 2021. See this statement in context.