U.S. small-business borrowing slips in February, up on year: PayNet

U.S. small businesses took out fewer loans last month but borrowing was up from a year ago as firms ramped up investments in their operations, according to data released on Tuesday. An increase of 1 percent to 2 percent indicates businesses are borrowing to replace worn out assets, PayNet founder and President Bill Phelan said. "It tells us that these businesses are investing because they are getting more orders and more purchases from their customers," Phelan said. Small businesses account for nearly half of gross domestic product in the United States, and an increase investments means that GDP will likely increase with a lag of two to five months.

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