Minnesota Small Business Defaults Up in June
Chicago, IL, August 9, 2017 (Newswire.com) - In June 2017, small business loan defaults increased in Minnesota's business community, despite default rates in 12 of the 18 major industries falling in the state, data published by PayNet reveals.
PayNet’s Small Business Default Index (SBDFI) for Minnesota was lowest in the country at only 1.12% following a 2 basis point rise from May. Compared to the national SBDFI level of 1.86%, Minnesota's SBDFI was 74 basis points lower. Financial health is stronger than a year ago in the state despite the recent uptick in defaults. Year-over-year, the national SBDFI rose 16 basis points, whereas Minnesota's SBDFI dropped 17 basis points.
Transportation and Warehousing (3.52%); Accommodation and Food Services (2.11%); and Finance and Insurance (2.00%) exhibited the worst default rates of all industries in Minnesota. Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.68% compared to the prior year, while Minnesota had a variance of +0.86%.
The PayNet Small Business Lending Index (SBLI) for Minnesota registered at 82.3, down 0.8% from the previous month's state level, and 16.6% beneath this month's national SBLI level (98.7).
"More definitive trends are needed to gauge the future economic performance for Minnesota," explains the president of PayNet, William Phelan.
Source: www.paynet.com
