Small Business Default Index (SBDFI)

The Small Business Default Index (SBDFI) measure the percentage of loans and leases to small businesses that have defaulted based on the largest commercial and industrial lenders in PayNet's U.S. database. 


  • Robust indicator of small business financial stress and insolvency
  • Valuable early insight into market conditions ahead of other quarterly economic releases
  • Reliable information to assess risk exposure and evaluate financial health across multiple sectors of the economy


The SBDFI signals financial distress at the national, state, and industry levels, providing insight to financial services executives, economists, policy makers and regulators. SBDFI offers a look at banking and financial distress conditions up to three months in advance of traditional FDIC measures of financial stress, giving valuable early insights into market conditions. While 90-day delinquency is a good measure of financial stress, some loans may cure.  Default is a point-in-time measurement of borrowers that have failed to remain current and as such is a vital piece of information to assess risk exposure and evaluate the health of the overall economy.

The index is calculated and published monthly as follows:

  • PRELIMINARY —current month data reflecting most recent small business delinquency performance released
  • REVISED — data for the month preceding Preliminary release
  • FINAL — data for the month preceding Revised release

The SBDFI is comprised of 988 indices at the national, state and industry levels.

To learn about the methodology and predictive qualities of the SBDFI, please read our White Papers.

Download PayNet SBDFI Methodology - White Paper

Download Examining the PayNet Small Business Default Indices as Concurrent Indicators of Financial Distress - White Paper


The PayNet Small Business Default Index is formulated on a monthly basis at the national level.

  Download the most recent PayNet SBDFI 

 The PayNet Small Business Default Index is also segmented into 987 indices for national-industry, state and state-industry segments.

To track the SBDFI on an ongoing basis, we encourage you to regularly visit the PayNet Risk Insight Suite®. (Initial registration is required to create customized charts as illustrated above.)


The PayNet Small Business Default Index (SBDFI) is particularly useful for five functions of the lending process.