Small Business Defaults in Louisiana Down in August
Chicago, IL, October 23, 2017 (Newswire.com) - In August 2017, small business loan defaults decreased in Louisiana's business community, with default rates in 14 of the 18 major industries falling in the state, data announced by PayNet shows.
Despite a 9 basis point fall from July, Louisiana's PayNet Small Business Default Index (SBDFI) at 2.89% was the worst in the country and was 105 basis points greater than the national SBDFI level of 1.84%. The decline in defaults over the past four months may signal improving financial health in the state. The national SBDFI increased eight basis points over the last year, whereas Louisiana's SBDFI declined 10 basis points.
The industries with the highest default rates in Louisiana were Transportation and Warehousing (6.66%); Mining, Quarrying, and Oil and Gas Extraction (5.69%); and Construction (4.51%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Louisiana had a variance of +0.93%.
At 113.1, the PayNet Small Business Lending Index (SBLI) for Louisiana surpassed the national SBLI level (99.3) despite declining by 0.2% from the previous month's state level. The Index is basically unchanged from a year ago.
"With lackluster investment and improving defaults, small business can look for growth opportunities," asserts the president of PayNet, William Phelan.
Source: www.paynet.com
