Small Business Defaults in California Unchanged in July
Chicago, IL, September 20, 2017 (Newswire.com) - In July 2017, small business loan defaults remained unchanged in California's business community, according to data announced by PayNet. Of the 18 major industries, 9 dropped and 7 rose.
Following comparable behavior to June, California's PayNet Small Business Default Index (SBDFI) at 1.64% was 23 basis points below the national SBDFI level of 1.87%. California's SBDFI rose 23 basis points over the last year, which was a sharper rise than the 15 basis point increase displayed by the national SBDFI.
Transportation and Warehousing (4.57%); Mining, Quarrying, and Oil and Gas Extraction (3.12%); and Information (2.96%) recorded the highest default rates of all industries in California. Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.63% compared to the prior year, while California had a variance of +1.14%.
California's PayNet Small Business Lending Index (SBLI) was 97.7, rising 0.4% from the previous month's state level, but 1.2% below the national SBLI level of 98.9 this month. Small business borrowers are cautiously increasing investment.
"Time will tell how these conditions will affect California's economy going forward," asserts William Phelan, president of PayNet.