Illinois Small Business Defaults Down in January, Borrowing Up

The percentage of small firms defaulting on loans has fallen in Illinois and the level of borrowing activity improved in January 2018, data published by PayNet illustrate.

The PayNet Small Business Default Index (SBDFI) for Illinois registered at 1.52 percent after a seven basis point improvement from December. Illinois' SBDFI was 30 basis points less than the national SBDFI level of 1.82 percent.  The national SBDFI dipped two basis points year-over-year, while Illinois' SBDFI declined 13 basis points.

The industries with the highest default rates in Illinois were Transportation and Warehousing (3.16 percent); Accommodation and Food Services (2.84 percent); and Information (2.80 percent). Nationally, Transportation and Warehousing had a default rate of 3.91 percent, with a difference of -0.40 percent compared to the prior year, while Illinois had a variance of -0.96 percent.

Coming in at 115.7, Illinois' PayNet Small Business Lending Index (SBLI) improved 1.6 percent from the previous month's state level and was 13.8 percent greater than this month's national SBLI level (101.7).

“The data suggest that financial conditions in the state may improve," states William Phelan, president of PayNet.