Experian Research Highlights the Effects of the Mortgage Meltdown on Small Businesses

Experian®, a global information services company, today announced the results of a comprehensive study that examines the payment behavior of the small-business owner in relation to the current mortgage crisis. The study found that business owners with a severe mortgage delinquency were more likely to pay their business obligations instead of their mortgage. Experian’s research showed that because of deteriorating equity, high mortgage payments and limited refinancing options, business owners chose to ensure the business’ survival, preserving their source of income at the risk of losing their home. Furthermore, the study found that small-business owners are relying on commercial lending options more often, instead of personal financing options, to support their businesses.

The study’s purpose was to determine the impact of a severely delinquent mortgage payment on a business owner’s personal and business credit behavior. For the report, Experian compiled a sample of 2.7 million business owners and analyzed the payment behavior of those owners with a mortgage over the course of one year.

“Experian’s mission is to provide organizations and consumers with the information they need to be successful and make better financial decisions,” said Kerry Williams, group president of Experian’s Credit Services and Decision Analytics. “As seen with this study, we are dedicated to researching and reporting the impact of current economic trends on the credit community in order to provide valuable insight affecting the global marketplace.”

To complete the study, Experian leveraged proprietary data from its Business Owner Link database, which connects small-business owners and their home address. Experian is the only company to offer this unique look into the small-business marketplace.

A sample of the study’s initial findings includes:

• Analysis of the business industries and regions most affected by the housing crisis
• Impact of the mortgage crisis on businesses based on their size and age 
• Examination of credit usage following a mortgage delinquency

For information on Experian’s advanced business-to-business products and services, visit www.experian.com/b2b or call an Experian sales representative at 1 800 509 5493.

About Experian
Experian plc is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions.

Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage.

For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 38 countries worldwide, supporting clients in more than 65 countries around the world. Continuing sales for the year ended March 31, 2008, were in excess of $4 billion.

For more information, visit Experian plc’s Web site on www.experiangroup.com.