Small Business Borrowing in New Jersey Stalls in May

PayNet, the premier provider of credit ratings on small businesses, reports that in May 2017 borrowing is stagnant in New Jersey. Of the 18 major industries, 9 dropped and 9 rose in the state.

The PayNet Small Business Lending Index (SBLI) for New Jersey came in at 95.9, performing similarly to the previous month's state level, but 2.4% beneath the national SBLI level of 98.3 this month. Small business borrowers are behaving more cautiously by reducing investment.

The three industries with the greatest decline in lending activity over the past year in New Jersey were Public Administration (-17.7%); Real Estate and Rental and Leasing (-11.2%); and Admin & Support and Waste Management & Remediation Services (-11.0%). Nationally, Public Administration grew by 5.1% year over year.

At 1.57%, the PayNet Small Business Default Index (SBDFI) for New Jersey was 30 basis points below the national SBDFI level of 1.87% following a similar performance in April. Compared to last year, the national SBDFI climbed 19 basis points, whereas New Jersey's SBDFI improved 6 basis points.

"Falling defaults over recent months signal improved financial health," explains the president of PayNet, William Phelan.