Small Business Defaults in California on the Rise in August

Press Release updated: Oct 23, 2017 11:23 CDT

In August 2017, small business loan defaults worsened in California, despite default rates in 13 of the 18 major industries falling in the state, according to data published by PayNet.

PayNet’s Small Business Default Index (SBDFI) for California registered 1.65% following a 2 basis point increase from July. California’s SBDFI was 19 basis points below the national SBDFI level of 1.84%.  California’s SBDFI rose 21 basis points year-over-year, which was a significantly sharper rise than the 8 basis point increase displayed by the national SBDFI.

The industries with the worst default rates in California were Transportation and Warehousing (4.46%); Information (2.96%); and Mining, Quarrying, and Oil and Gas Extraction (2.44%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while California had a variance of +1.06%.

Coming in at 97.9, California’s PayNet Small Business Lending Index (SBLI) performed comparable to last month’s state level, but was 1.4% below this month’s national SBLI level (99.3).

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

Source: www.paynet.com

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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