Small Business Loan Delinquencies Rise

Reuters reports that delinquencies among small and medium-sized U.S. businesses on the loans, leases and lines of credit they use to finance investment in capital equipment rose in August, PayNet Inc reported. Accounts in moderate delinquency, or those behind by 30 days or more, rose to 4.40% in August from 4.36% in July, said PayNet, which provides risk-management tools to the commercial lending industry.

Accounts 90 days or more behind in payment, or in severe delinquency, improved modestly, slipping to 1.51% in August from 1.52% in July. But those that were 180 days behind, or considered to be in default, rose to 0.81% in August from 0.78% in July. More than half the money invested in plants, equipment and software in the U.S. in any given year is financed with loans, leases and lines of credit.

The report continues to suggest that the U.S. economy is experiencing a patchy rebound. Separately, PayNet said its small business lending index, which had risen in June and July, fell at an annual rate of 20% in August.