The Thomson Reuters/PayNet Small Business Lending Index decreased to 98.5 in March from a revised 105.4 in February. The index, which measures the amount of new commercial loans and leases granted to small businesses, and therefore their investment expansion, has been declining. This latest report signals a clear slowing of the U.S. small business economy.

Meanwhile, credit risk increased slightly as the Thomson Reuters/PayNet Small Business Delinquency Index (SBDI) rose 1 basis point to 1.30% in March. The SBDI is an indicator of the future health of loan portfolios.

“These latest releases suggest small businesses lack the appetite to take on risks. Businesses across the US are slowing their investment in capital forming projects and at the same time the credit ratings of small companies as a group are falling, although still high by historical standards.” says William Phelan, president of PayNet.

PayNet's data takes the pulse of the U.S. Small Business economy and has proven to be a leading indicator of the GDP between 2-5 months. PayNet is the leading provider of credit ratings on small businesses enabling lenders to achieve optimal risk management, growth and operational efficiencies. PayNet maintains the largest proprietary database of small business loans, leases and lines of credit encompassing over 20 Million contracts worth more than $1 Trillion. Using state-of-the-art analytics, PayNet converts raw data into real-time market intelligence and predictive information that subscribing lenders use to make informed small business financial decisions and improve their business strategy.