North Carolina Small Business Borrowing Increases in July, as Are Defaults
Chicago, IL, September 20, 2017 (Newswire.com) - Data released by PayNet show that small businesses in North Carolina borrowed more as the percentage of firms defaulting on existing loans also increased in July 2017.
At 112.7, North Carolina's PayNet Small Business Lending Index (SBLI) rose 1.2% from last month's state level and was 14.0% higher than the national SBLI level of 98.9 this month. We can cautiously anticipate improving financial conditions in North Carolina based on recent small business investment.
Admin & Support and Waste Management & Remediation Services (33.5%); Accommodation and Food Services (32.2%); and Wholesale Trade (22.7%) were the industries with the largest improvement in lending activity over the past year in North Carolina. Nationally, Admin & Support and Waste Management & Remediation Services grew by 6.0% year over year.
Despite a two basis point increase from June, North Carolina's PayNet Small Business Default Index (SBDFI) of 1.69% was still 18 basis points below the national SBDFI level of 1.87%. The national SBDFI rose 15 basis points year-over-year, whereas North Carolina's SBDFI improved 2 basis points.
"Small businesses are back in the game and investing again," explains the president of PayNet, William Phelan.