Small business lending jumps for ninth consecutive month

6/2/2011

Financing appears to be less of an issue for entrepreneurs, as a recent report conducted by Thomson Reuters and PayNet indicates small business lending rose 17 percent in April. This marks the ninth consecutive month that has shown double-digit, year-over-year improvements.

Moreover, as the economy continues to recover and consumers gain access to more disposable income, business prospects are expected to continue to improve even further. Though the borrowing index slipped 1 percent compared to last month, it continues to show year-over-year improvements.

The slip in borrowing suggests that once demand picks up, small businesses are will be set to grow. "The fact that small businesses are hanging in there is a good sign for the economy," William Phelan, president of PayNet, told Reuters. "The data tells us they are having more of a pause than a major contraction."

Small businesses are major contributors to local economies, so more available financing tends to lead to more jobs and healthier cities.