Small Business Lending Investment at a High

By Josh Hart | uncategorized 0

The financial health of small businesses in the U.S. shows improvement, according to the Thompson Reuters/PayNet Small Business Lending Index (SMBI), and that is great news for the U.S. economy.


What Does the SMBI Mean?

The Small Business Lending Index is a number based on new commercial loan and lease originations by major U.S. lenders. Thompson Reuters, an information provider for business leaders and decision makers in financial, risk management, legal, tax, accounting, intellectual property and media markets, combines industry experts with innovative technology to predict economic indicators. PayNet is the leading provider of credit ratings on small business, maintaining the largest proprietary database of small business loans, leases, and lines of credit. Together, they provide an in-depth understanding of where the economy stands in the business cycle.


Alternatively, Thompson Reuters and PayNet publish a Small Business Delinquency Index (SMDI) that measures the financial stress of small businesses with $1 million or less in outstanding credit. An early warning of future insolvency across the economy, the SMDI also forecasts default risks and unemployment trends.

An indicator of GDP, the SMBI increased 8 percent from March 15 to April 15, 2015. It's at an all-time maximum value, up 13 percent from one year ago.


Where is Investment Happening?

Statistics are showing more investment in a diverse sampling of industry groups.

  • Accommodation and food service are up 16 percent, indicating that Americans are traveling more and dining out in restaurants.
  • Transportation and warehousing are up 25 percent, indicating an increased delivery of goods across the country.
  • Additional increasing numbers are showing in construction, indicating an increase in infrastructure, road construction and housing.

Overall, the rising SMDI data suggests the financial health for small businesses is improving, rightly recognizing American entrepreneurs as the "growth engine for the U.S. economy."


Are you growing your own small business? As the economy is on the rise and forecasts are positive for small businesses, now is the time to investigate the types of funding available, including alternative financing options. Call the professionals at Bizlender, 855-404-3070 to discuss alternative funding for the growth of your small business.

Posted in uncategorized
Last edit: March 6, 2018


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