Reuters reported that according to PayNet, Canadian commercial lending activity rose to its highest level in nearly three years in the first quarter, signaling the country's small-business economy is emerging from the shadow of the
recession.
   
PayNet, which tracks commercial financing to thousands of North American small and medium-sized companies, said its Canadian Business Lending Index rose 2 percent from the fourth quarter and 15 percent year over year.   

The report quotes William Phelan, PayNet’s president and founder saying, "The business climate is healthy in Canada. We're in this really positive phase of expansion and (taking on) more risk and that really bodes well for the Canadian economy."
   
According to the report, the data marked the sixth straight quarter of expansion since bottoming out in 2010, and the third consecutive double-digit advance on a year-over-year basis.  The Canadian PayNet index rose to 150, its highest reading since the second quarter of 2009. The number contrasted sharply with the corresponding U.S. index, which fell 2 percent to 94.1.
   
"Canadian businesses are growing at twice the rate of the U.S. businesses," said Phelan, adding that U.S. business lending was up just 7 percent from the previous year.