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U.S. Small Business Loans Jump

Business Strategy

Small U.S. businesses stepped up borrowing in September, data released by PayNet on Monday showed, suggesting the recovery is gaining steam even before the Federal Reserve Bank embarks on an expected new round of monetary stimulus.

| November 2, 2010

Small U.S. businesses stepped up borrowing in September, data released by PayNet on Monday showed, suggesting the recovery is gaining steam even before the Federal Reserve Bank embarks on an expected new round of monetary stimulus.

The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to U.S. small businesses, rose 16 percent in September from a year earlier, PayNet said.

The index rose 15 percent in August, and is now at the highest level in almost two years.

A surge in borrowing by small businesses can be a harbinger for the broader economy, because small firms account for as much as 80 percent of new U.S. hiring.

Click here to read the entire article.

Source: CNBC

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