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VOL. 128 | NO. 108 | Tuesday, June 04, 2013

Small Business Borrowings Up for First Time in 2013

AP

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NEW YORK (AP) – Small businesses took out more loans and leases during April, the first increase in borrowing this year, according to an index released Wednesday.

The Thomson Reuters/PayNet Small Business Lending Index rose to 110.5 from the revised March level of 99. That brought borrowing levels back to where they were at the start of 2013.

The index had fallen steadily since December. Business owners have held back from making major investments or purchases, partly because they wanted to see the impact of federal budget cuts that took effect March 1. They also are concerned about the slowness of the economic recovery and the impact that the health care law will have when it takes full effect Jan. 1.

Those concerns make it difficult to predict whether April's increase in borrowing is the start of a positive trend. Other surveys have shown that owners are reluctant to take on debt. Many companies have been focused on paying their debts down after the recession

The index is compiled from data on commercial loans and leases in PayNet's database. The company provides credit ratings on small businesses.

A separate Thomson Reuters/PayNet index that measures small business delinquency rates fell 0.01 percentage point to 1.26 percent – a sign that more companies are paying their bills on time.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 35 250 5,016
MORTGAGES 60 382 6,608
FORECLOSURE NOTICES 17 55 1,534
BUILDING PERMITS 179 720 11,979
BANKRUPTCIES 54 257 5,216
BUSINESS LICENSES 24 89 2,025
UTILITY CONNECTIONS 92 443 6,907
MARRIAGE LICENSES 16 81 1,422

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