The October release of the Thomson Reuters/PayNet Small Business Lending Index (SBLI) increased 12% compared to October 2013. The SBLI increased 4% from 127.1 in September 2014 to 131.8 in October 2014, reflecting signs of strength in the economy. This is the first time the SBLI has exceeded the pre-recession peak, though it did so just barely compared to the previous high of 131.7 in January 2007.

“This positive report indicates small business confidence has returned. They are investing at a rate on par with before the recession,” said William Phelan, president of PayNet. “Their financial health remains strong, so much so that the increased investment is creating profitable growth as no signs of material delinquency appears.”

Expansion has been accompanied by low and or falling delinquencies. The Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) 31-90 days past due decreased from 1.26% in September 2014 to 1.25% in October 2014, which is only 10 basis points above the all-time low of 1.15% recorded in October 2013. Notably, the Transportation and Retail segments are both at all-time lows of 0.79% and 1.13%, respectively.

The SBDI 91-180 days past due remained flat at 0.31% from September to October. Compared to one year ago, severe delinquency is up 2 basis points from 0.29%.