Small Business Defaults in Minnesota Down in July
Chicago, IL, September 20, 2017 (Newswire.com) - PayNet, the leading provider of credit ratings on small businesses, reports that in July 2017 the percentage of Minnesota's small businesses defaulting on existing loans has moderated, with default rates in 14 of the 18 major industries falling in the state.
After a 4 basis point fall from June, Minnesota's PayNet Small Business Default Index (SBDFI) at 1.09% was lowest in the country and was 78 basis points below the national SBDFI level of 1.87%. The national SBDFI rose 15 basis points over the last year, whereas Minnesota's SBDFI fell 19 basis points.
The three industries with the worst default rates in Minnesota were Transportation and Warehousing (3.58%); Accommodation and Food Services (2.00%); and Finance and Insurance (1.88%). Nationally, Transportation and Warehousing had a default rate of 4.57%, with a difference of +0.63% compared to the prior year, while Minnesota had a variance of +0.76%.
At 81.9, the PayNet Small Business Lending Index (SBLI) for Minnesota fell 0.7% from last month's state level and was 17.2% lower than this month's national SBLI level (98.9). Small business borrowers are being cautious and holding off on new investment.
"Time will tell how these conditions will affect Minnesota's economy going forward," explains the president of PayNet, William Phelan.