Nebraska Small Business Defaults Up in December, Borrowing Down
Lincoln, NE, February 28, 2018 (Newswire.com) - Data released by PayNet indicate that more small businesses defaulted on loans in Nebraska and the level of borrowing activity worsened in December 2017. The indices suggest that financial conditions in the state may weaken.
The PayNet Small Business Default Index (SBDFI) for Nebraska registered at 1.35% following a 2 basis point increase from November. Compared to the national SBDFI level of 1.83%, Nebraska's SBDFI was 48 basis points less. Over the last year, Nebraska's SBDFI increased 9 basis points, while the national SBDFI has held flat.
The industries with the highest default rates in Nebraska were Transportation and Warehousing (2.93%); Information (2.26%); and Accommodation and Food Services (1.96%). Nationally, Transportation and Warehousing had a default rate of 4.00%, with a difference of --0.20% compared to the prior year, while Nebraska had a variance of +0.08%.
Coming in at 106.7, Nebraska's PayNet Small Business Lending Index (SBLI) exceeded the national SBLI level (100.3) despite dropping by 1.3% from last month's state level. The Index is basically unchanged from a year ago.
"Time will tell how these conditions will affect Nebraska's economy going forward," states William Phelan, president of PayNet.