The March data release of the Thomson Reuters/PayNet Small Business Lending Index (SBLI) increased 2% from February to 129.6 in March 2015. This also reflects a 12% increase versus March 2014.

“If not for the small business investment, this latest GDP number would have been horrendous for the economy,” states William Phelan, president of PayNet. “Investment by small businesses is a bigger driver of GDP than we thought. A 1% increase in SBLI drives about $6.8 billion in activity so small business accounted for a big portion of the increase in GDP.”

Small businesses are well positioned to invest and expand because financial health remains very good, according to the report. Default rates of small businesses hit an all-time low in 2014 at 1.0%. PayNet’s forecast for higher default rates is based on greater risk-taking as indicated by a slight rise in loan delinquencies since 2013.

The Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) 31-90 days past due decreased 1 bp from 1.26% in February 2015 to 1.25% in March 2015. As compared to one year ago, delinquency is up 5% (6 bps), the tenth consecutive month of year-over-year increases.

Editor’s Note:
PayNet provided the following update:
The Thomson Reuters/PayNet Small Business Lending Index (SBLI) seasonally adjusted originations increased 2% from 127.1 in February 2015 to 129.6 in March 2015.
Compared to the same month one year ago, the index is up 12%. The rolling three month index is up 10% as compared to the same period one year ago. The February 2015 SBLI was restated upward to 127.1.