by Ray Hayes
Small business remains at an all time high despite the Thomson Reuters / PayNet Small Business Lending Index (SBLI) reporting a slight decrease for the month of April.
The SBLI fell 3.5 points to an average of 141.7 but according to WRAL Tech Wire lending, “remains in the top 5 percent of all readings and is up nearly 13 percent over the last 12 months.” Furthermore, the SBLI is 11 percent above its average from a year ago despite the modest decline in April.
With the increase in consumer demand and a strong economic market, small business lending could remain high as owners take advantage of investment opportunities in equipment and other innovative products.
Not only is small business lending at a record high, defaults in the information industry have reached the highest level in six years. BizJournals reported that, “Regionally, defaults fell in seven of the ten largest states compared to the previous month, but rose in half of the largest states on an annual basis.”
William Phelan, president of PayNet, Inc. spoke about the recent achievements and success in the small business industry. “Main Street businesses are taking advantage of the strong economic climate and steady consumer demand, so we expect that robust lending to small businesses will continue as they look to expand by investing in equipment, employees, and innovation,” added Phelan. “Over the next year or two, we expect delinquencies and defaults to continue to tick up and return to more normal levels. But for now, the small business sector has the wind at its back, which should provide a big lift to US GDP over the next 2-5 months.”