Small Business Defaults in Pennsylvania Down in February
Chicago, IL, April 13, 2017 (Newswire.com) - PayNet, the premier provider of small business credit assessments on private companies, announces that in February 2017 the percentage of small businesses defaulting on loans has fallen in Pennsylvania. Of the 18 major industries, defaults improved in 11 and worsened in 7 in the state compared to the prior month.
PayNet’s Small Business Default Index (SBDFI) for Pennsylvania stood at 1.76% following a 2 basis point reduction from January. Compared to the national SBDFI level of 1.89%, Pennsylvania’s SBDFI was 13 basis points lower. Financial health is weaker than a year ago in the state despite the recent downturn in defaults. Over the last year, Pennsylvania's SBDFI increased 32 basis points, while the national SBDFI rose 30.
Mining, Quarrying, and Oil and Gas Extraction (4.96%); Transportation and Warehousing (3.76%); and Manufacturing (2.28%) exhibited the highest default rates of all industries in Pennsylvania. Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 4.72%, with a difference of +2.25% compared to the prior year variance of -0.05% in Pennsylvania.
The PayNet Small Business Lending Index (SBLI) for Pennsylvania came in at 100.6, exceeding the national SBLI level of 99.0 and performing on par with the previous month's state level. Small business borrowers are cautiously increasing investment.
"Small business growth bodes well for future GDP," explains the president of PayNet, William Phelan