Small business borrowing increased by 17 percent in November from the previous year, hitting the highest figure for the first time in two years, according to a report released by The Thomson Reuters/Pay Net Small Business Lending Index. The index measures the volume of financing available to small companies, using January 2005 as its base.
The percentage of borrowing small businesses is up from 79.8 in October to 88.3 in November, the best rate since September 2008.
PayNet also released information revealing that fewer small businesses are behind on loan repayments, which is a positive sign for the economy.
"This provides definitive proof that the small business economy is continuing to grow and recover," Bill Phelan, president at PayNet, told Reuters. .
"Everywhere you look at the index, it's very, very positive," he added.
Delinquent accounts by more than 30 days decreased to 2.51 percent in November, down from 2.65 percent in October. Accounts behind by more than 90 days decreased to .76 percent in November from .78 percent in October. Those behind by more than 180 days fell from .81 in October to .79 percent in November.
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