Photo: ilamont.com on flickr
Small businesses took out loans in numbers unseen since July 2008, according to Reuters. They got the data from the Thompson Reuters PayNet Small Business Lending Index which tracks the volume of loans made to America’s small businesses.In May, the number went up 26% from May 2010, according to Reuters:
“If small businesses are taking these kind of chances, taking risks, making long term investments, they are seeing some long-term opportunities on the horizon,” PayNet founder Bill Phelan said in an interview. “That’s got to be a big positive sign for the economy.”
That’s because small businesses account for 80% of hiring in this country, and this index usually acts as a 2 to 3 month leading indicator of what will happen to the economy at large.