Small Business Defaults in Pennsylvania Up in July

​PayNet, the leading provider of small business credit assessments on private companies, reports that in July 2017 the percentage of small businesses defaulting on loans has worsened in Pennsylvania, with default rates in 10 of the 18 major industries rising in the state.

The PayNet Small Business Default Index (SBDFI) for Pennsylvania registered at 1.71% after a 3 basis point increase from June. Compared to the national SBDFI level of 1.87%, Pennsylvania's SBDFI was 16 basis points less.  Over the last year, the national SBDFI rose 15 basis points, while Pennsylvania's SBDFI rose 8 basis points.

The industries with the highest default rates in Pennsylvania were Mining, Quarrying, and Oil and Gas Extraction (3.63%); Transportation and Warehousing (3.59%); and Manufacturing (2.58%). Nationally, Mining, Quarrying, and Oil and Gas Extraction had a default rate of 3.67%, with a difference of -0.36% compared to the prior year, while Pennsylvania had a variance of -2.34%.

The PayNet Small Business Lending Index (SBLI) for Pennsylvania came in at 99.1, performing similarly to both the previous month's level and the national SBLI level of 98.9 this month. Year-over-year, business investment deteriorated 2.0%.

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