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VOL. 128 | NO. 108 | Tuesday, June 4, 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 This material may not be published, broadcast, rewritten or redistributed.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 89 322 8,071
MORTGAGES 93 381 9,580
FORECLOSURE NOTICES 31 81 1,439
BUILDING PERMITS 236 688 17,295
BANKRUPTCIES 52 207 5,613
BUSINESS LICENSES 35 143 3,091
UTILITY CONNECTIONS 28 128 3,378
MARRIAGE LICENSES 27 120 1,808

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