April 3 - William Phelan, President of PayNet says demand for small business loans is stumbling, adding this kind of stall isn't good for future GDP growth.
Investors have gotten bullish based on a positive -- of US economic data. The pain that president willing Whalen says the small businesses the tracks are starting to stall. He joins us now from Chicago bill -- Thomson Reuters and a small business lending index up to date for February registered 98 point three and that's down from the plus 100 levels of late last year what do you think -- Well it really is a sign of stall -- set itself faltering if you will. It seems like these small businesses or politically inspired. Perhaps they're trying to figure out the direction of a lot of policies -- Via politics or are probably need to gel before some small business owners start to jump back in the game. And as you said it is in 98 for the last two months and so. Yeah we do see that is somewhat stalled and it is we're not being in the alarm bells on what we are I guess looking at this as a cautious released this month. Well when you joined us last month he said you're seeing a very positive story what happen. Well actually two months in -- those trendy and if you start to see these. These months. Can stay at the same level you know really. We've been tracking these circles for a long time now since 2005. We've never really seen this kind of stalled before world what we have. It hasn't been. Really good indicator of future GDP growth. As you know the small business lending indexes is a rooted leading economic indicator of future GDP. And as small business goes so goes GDP in the US so if it's not acted the first time you're seeing this spells not good for GDP what does this mean for jobs. Well you know we're not tracking jobs for state put these are loans loans to back investments in property plant and equipment. So these are the core expansion projects of millions of small companies. And it's of these are going to expand the that -- capital stock in the business that recovery were seeing at least what you're seeing small businesses. That it may not be silent. Well we've been seeing a solid recovery for summer months mean this is in nineteen consecutive month of double digit increases. And last year we actually saw the double digit increases averaged 17% per month. This last releases 14%. So it's down actually in in a percentage basis vs last year and that's why we're injecting a lot of caution into the latest -- Now we're not seen that GDP appointment but again as GD.