Illinois Small Business Defaults Up in July
Chicago, IL, September 20, 2017 (Newswire.com) - In July 2017, overall small business loan defaults increased in Illinois, despite default rates in 11 of the 18 major industries falling in the state, data released by PayNet reveals.
PayNet’s Small Business Default Index (SBDFI) for Illinois registered at 1.78% following a 2 basis point increase from June. Compared to the national SBDFI level of 1.87%, Illinois' SBDFI was 9 basis points less. The uptick in defaults over the past two months may signal weakening financial health in the state. Year-over-year, Illinois' SBDFI rose 32 basis points, which was a much steeper upturn than the 15 basis point increase displayed by the national SBDFI.
Transportation and Warehousing (4.31%); Manufacturing (2.99%); and Accommodation and Food Services (2.71%) recorded the highest default rates of all industries in Illinois. Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.63% compared to the prior year, while Illinois had a variance of +0.83%.
The PayNet Small Business Lending Index (SBLI) for Illinois registered at 111.8, surpassing the national SBLI level (98.9) and performing similarly to last month's state level. The Index is basically unchanged from a year ago.
"With minimal improvement in borrowing and increasing defaults, small business financial health has fallen," asserts William Phelan, president of PayNet.