Data Reveals Increase In Small Business Loans
Written by Jenna Weiner
PayNet Index reveals a 16 percent increase in loans to small businesses
The latest data released by PayNet reveals that small businesses had an easier time getting loans than in previous months.
The news for small business was a positive development after many have had trouble getting loans. The Thomson Reuters/PayNet Small Business Lending Index revealed that the volume of financing to small businesses had grown by 16 percent in September after rising by 15 percent in August. The founder and president of PayNet said that the statistics showed, beyond a shadow of a doubt, that the economy was well on its way to getting back on its proverbial feet.
"This doesn't point to anything but a robust recovery," Phelan said in an interview with CNBC. "These small businesses are people who see the demand in the economy every day, and they are alert to react very quickly to that demand."
Phelan was in the headlines last month when his group revealed statistics showing that small business loans were safer than speculative-grade (or junk) bonds. The data showed that small business defaulted on 6.9 percent of loans, as compared to a 12.9 percent rate on junk bonds.
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