Small-Business Borrowing Takes a Tumble in August

Category: Small Business Borrowing Published: Sunday, 12 October 2014 Written by Admin
Mike Bradley/Bloomberg via Getty Images
By Elvina Nawaguna

WASHINGTON -- Borrowing by US small businesses fell sharply in August, data showed Wednesday, a sign firms were pausing to consolidate recent investments in their operations.

The Thomson Reuters/PayNet Small Business Lending Index fell 10.2 percent to 114.5 in the month from a more-than-seven-year high reached in July.

The index gauges borrowing by firms with $1 million or less in outstanding debt.

The drop brought the index 1.2 percent below its year-ago level. It was the first year-on-year decline since March 2013, but it followed a period of strong borrowing growth.

Hits: 890