Small Business Insights - June 2020

The PayNet Small Business Indices, along with being a reliable predictor of small business financial stress, provide early signals of future economic growth, demand for capital, and business fixed investment across multiple sectors of the economy.

According to the latest data, the PayNet Small Business Lending Index (SBLI) fell 14.4 points (-11.8%) to 107.4 in April and is now 32% below its year-ago level, potentially suggesting that small businesses are substituting traditional lending with PPP loans.

The PayNet Small Business Delinquency Index (SBDI) 31-90% rose 36 basis points (bp) in April — more than doubling the previous largest monthly increase of 16bp set last month — and is now 59bp above its year-ago level. Meanwhile, the SBDI 91–180 Days Past Due increased 5bp and has risen 11bp over the last year.

Yet as mentioned by US Chamber of Commerce Vice President of Small Business Policy Thomas M. Sullivan on our latest Market Pulse webinar with Equifax, a recent impact poll by the Chamber of Commerce and MetLife shows more small businesses are reporting overall good health (53% this month vs. 50% the previous month). Will those numbers continue as businesses slowly reopen?

Join PayNet SVP & General Manager Bill Phelan, former SBA Administrator and Senior Fellow at Harvard Business School Karen Mills, PayNet Statistical Index Developer Elaine Makdah, and Senior Statistical Analyst Sarah Briscoe as they present our monthly small business insights webinar, moderated by SVP, Marketing Rissa Reddan. They will review the latest small business lending and delinquency activity and offer their insights on the implications for small business going forward.

Review the Strategic Insights for June 2020 here.