CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » Index Depicts Weak Small Business Economy
Lending

Index Depicts Weak Small Business Economy

Limited access to credit, flat job growth, and tepid retail spending blamed for soft outlook.

August 23, 2011
No Comments

An index of U.S. small business health indicates a sluggish small business economy.

The SB Authority Index rose 0.96% from June to July to 107.26 points due to increased Small Business Administration loan volume and retail sales, and indications from the Russell Microcap Index.

But other factors are dampening business growth.

“The small business economy has been extremely sluggish and struggles to grow,” says Barry Sloane, president/CEO of The Small Business Authority, which publishes the monthly index. “Our slight monthly increase for July is a further condition of the problems that small businesses ultimately have and will have going forward. We see slight availability of credit, flat job growth, and tepid retail spending.

SB Authority Index“In addition,” he continues, “the Federal Reserve keeping interest rates at 0% is not good for small businesses since this is creating inflation and weakening the dollar.”

The SB Authority Index uses eight authoritative economic indicators to determine small business health. Computed relative to the base year of 2007, each indicator is factored into a mathematical formula based on correlation coefficients that monitor the strength of the small-business economy.

The eight indicators the index leverages are:

  1. ADP National Employment Report;
  2. Russell Microcap Segment of the U.S. equity market;
  3. Prime rate;
  4. Retail sales;
  5. Newtek Merchant Processing;
  6. Approved Small Business Administration loan volume;
  7. GLS Estimated Small Business Loan Default Rate; and
  8. State of Delaware new business formations.

A number greater than 100, the established baseline, describes the economy climbing to a healthier state and a chance for small business success.

Watch Barry Sloane explain the SB Authority Index:

KEYWORDS business index small

Post a comment to this article

Report Abusive Comment

Credit Union Magazine - Winter 2019

Winter 2019

Alternative lending, compliance management systems, and ideas for boosting credit card portfolios are among the topics of Credit Union Magazine’s Winter 2019 edition.
App •  Digital Edition •  Subscribe

Trending

  • CFPB proposes to raise remittance threshold to 500 transfers

  • PODCAST: Bettering people’s lives

  • Compliance: Recapping the 2019 BSA Conference

Tweets by CUNA_News

Polls

What's the pace of staff turnover at your CU?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors