U.S. Small Business Lending Continues to Stall in March
The pace of lending to small businesses in the United States continues to be at a standstill, supporting the view that economic growth is headed for a further slowdown, according to PayNet’s Small Business Lending Index.
The index shows that small businesses are becoming increasingly concerned about the economy, targeting their investments to replace worn out equipment or to increase efficiency. PayNet’s analysis shows that lending is up 10% from March 2011, but has declined 3% from February 2012.
According to PayNet president William Phelan, “What is surprising about this latest release is that entrepreneurs are shying away from investments. This is particularly striking given the lowest credit risk since 2005 and an outlook for low risk through year-end 2012.”
BORROWING: Reluctant to Expand
DEBTS PAID: Financial risk has improved