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Small business lending index improves

Jun 10, 2013 Philip Burgess

Even in a rebounding economic environment in which the expiration of a payroll tax credit and sequestration have made it difficult for small businesses to thrive, lending to America's small firms is in healthy state.

The first quarter numbers on the Small Business Credit Index from Experian and Moody's Analytics show that the lending index is currently at 109, up from the 104.3 mark from the previous quarter.

Despite the jump in lending, experts suggested that next year may be even better as small businesses, short term lenders and other financial institutions learn to navigate the changing financial regulations. Even so, the current figures have many already expressing optimism.

"Small businesses have reduced their levels of payment delinquency, and that is a good sign," said Dan Meder, Experian vice president. "By successfully meeting their payment obligations, they avoid negative repercussions on credit availability that could limit growth."

A separate small business index that was recently released backed up the positive sentiment by Moody's and Experian officials.

For instance, the Direct Capital Small Business Lending Index found that the demand for loans increased by 2 percent in April when compared to March's figure.

Year-to-year numbers were particularly impressive as well. The recent April mark was a 39 percent improvement from the April 2012 index.