Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Sep 5, 2012

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Small business loan lending has risen 3 percent in July after steadily falling for five of the last six months, according to a survey by the research firm PayNet. The survey is based upon newly borrowed business loans as well as leases that are granted to small businesses by U.S. lenders.

In comparison to one year ago, commercial lending has risen 15 percent, showing a marked increase of business loans being made.

Business loan payments also saw a noticeable change in July.

PayNet experts have stated that for the first time in two and a half years, small businesses are delaying making payments on their bills. The rate of business loan payments that were at least 30 days past due increased from 0.04 percent to 1.2 percent in July, signifying that small business owners were hesitant to part with scarce funds, even in order to make necessary monthly payments.

The results of the PayNet survey are in accordance with those from other research firms as well.

According to the Institute for Supply Management, the manufacturing industry, which is comprised of small businesses in addition to large manufacturing giants, saw its third consecutive drop in activity in the month of August.

These grim findings show that, overall, businesses are facing a market contraction.

Small business owners claim to be borrowing cautiously due to uncertainty about the economy and their own slow sales since the economy rose a meager 1.7 percent annual growth rate during the second quarter of 2012.

Also influencing uncertainty is the upcoming presidential election. Both candidates have widely contrasting views and policies that could drastically impact the economy. The continual slowing of the economy has also discouraged small businesses from hiring new employees and funding expansions through borrowing.