June 3 , 2014
U.S. Small Business Lending Picking Up Momentum
CHICAGO, IL – Small business investment is gatherine steam says the ‘Thomson Reuters/PayNet Small Business Lending Index’. The index registered 126.5 in April, an 18 per cent increase year-over-year. It increased 10 per cent compared to March, which had a minor revision from 115 to 115.3. The three-month trend line has risen to 14 per cent and indicates the economy is likelier to expand in the second quarter after a troubled first quarter. “When small businesses invest and maintain strong finances, the national economy is likely to grow,” says William Phelan, president of PayNet, Inc. ”This latest report of small business trends bodes well for more economic expansion of U.S. GDP in 2014.”
The index, which measures loans more than 30 but less than 91 days past due, remained flat at 1.2 per cent in April 2 compared to March. Compared to one year ago, delinquency is three basis points lower in April.
Small businesses are financing these investments without falling behind on their payments indicating pay-offs from these investments for now. In this current data release, Transportation and Agriculture sectors are both at all-time lows of 1.01 per cent and 0.31 per cent while Construction and Retail are up 0.02 per cent and 0.01 per cent.
“The small business economy is reflecting a shift in momentum after the first quarter. After years of tepid and halting expansion, small business owners finally appear to have more confidence,” says Phelan.