Minnesota Small Business Defaults Down in April, as is Borrowing

The percentage of small firms defaulting on loans has fallen in Minnesota and the level of borrowing activity decreased in April 2017, data released by PayNet show.

Following a 4 basis point decline from March, Minnesota's PayNet Small Business Default Index (SBDFI) of 1.12% ranked best nationally and was 78 basis points less than the national SBDFI level of 1.90%. The national SBDFI rose 26 basis points year-over-year, whereas Minnesota's SBDFI dipped 6 basis points.

Transportation and Warehousing (3.98%); Finance and Insurance (2.26%); and Accommodation and Food Services (2.24%) displayed the highest default rates of all industries in Minnesota. Nationally, Transportation and Warehousing had a default rate of 4.54%, with a difference of +1.12% compared to the prior year versus a variance of +1.99% in Minnesota.

The PayNet Small Business Lending Index (SBLI) for Minnesota came in at 83.1, down 1.9% from the previous month's level and 15.4% lower than the national SBLI level this month (98.2).

"More definitive trends are needed to gauge the future economic performance for Minnesota," states William Phelan, president of PayNet.

For more information on PayNet, visit www.paynet.com.