California Small Business Defaults Up in January

Chicago, IL, March 13, 2017 (Newswire.com) - In January 2017, small business loan defaults worsened in California's business community, data released by PayNet shows. Of the 18 major industries, 16 increased and only 2 fell in the state.

In spite of a 15 basis point climb from December, California's PayNet Small Business Default Index (SBDFI) of 1.64% was still 20 basis points below the national SBDFI level of 1.84%.  The national SBDFI rose 29 basis points year-over-year, while California's SBDFI increased 25.

The three industries with the worst default Index in California were Mining, Quarrying, and Oil and Gas Extraction (4.96%); Transportation and Warehousing (3.94%); and Information (3.43%). With a 4.03% variance, Mining, Quarrying, and Oil and Gas Extraction has also seen the greatest increase year-over-year of any of California's industries.

California's PayNet Small Business Lending Index (SBLI) came in at 98.9, performing on par with both the previous month's state level and this month's national SBLI level. Small business borrowers are being cautious and holding off on new investment.

"Time will tell how these conditions will affect California's economy going forward," asserts William Phelan, president of PayNet.

Source: PayNet, Inc.