Small Business Borrowing in Texas Stalls in May
Chicago, IL, July 28, 2017 (Newswire.com) - In May 2017, Texas' small firms borrowed similarly to last month, data published by PayNet shows. Of the 18 major industries, 10 rose and 8 fell in Texas.
Coming in at 114, Texas' PayNet Small Business Lending Index (SBLI) surpassed the national SBLI level (98.3) and performed on par with last month's state level. We can cautiously anticipate improving conditions in Texas based on recent small business investment.
The three industries with the most favorable change in lending activity over the past year in Texas were Arts, Entertainment, and Recreation (31.9%); Information (21.2%); and Admin & Support and Waste Management & Remediation Services (9.6%). At 210.1, the Arts, Entertainment, and Recreation industry have never been higher in the state.
The PayNet Small Business Default Index (SBDFI) for Texas registered the highest default rate nationally at 3.14%. Following a similar value to April, Texas' SBDFI was 127 basis points above the national SBDFI level of 1.87%. Year-over-year, Texas' SBDFI climbed 41 basis points, which was a much sharper upturn than the 19 basis point increase exhibited by the national SBDFI.
"Time will tell how these conditions will affect Texas' economy going forward," states William Phelan, president of PayNet.
Source: www.paynet.com
