SB Authority Index Depicts the Small Business Economy is Struggling
Press release from the issuing company
Tuesday, September 27th, 2011
Newtek Business Services, The Small Business Authority, announced the release of the SB Authority Index for August 2011 reaching 108.06 points. The SB Authority Index is up .76% from July 2011. Approved SBA loan volumes, the Russell microcap index and Retail Sales caused the increase in the index. However, the index growth was limited by the flat and slight reduction within the other five components.
President and CEO, Barry Sloane said, "The small business economy continues to struggle along as consumer spending and employment trends are clearly reducing economic activity. The recent announcement of monetary policy by the Federal Reserve may increase interest rates to small businesses as most small businesses borrow on a prime rate basis and off the short end of the yield curve. If Federal Chairman Bernanke's "twist strategy" works, long term rates will decline but at the expense of short term interest rates increasing. Again, if the strategy works it will be most beneficial to the long end of the market, which drives residential mortgage rates lower and cost to refinance lower. This should put increased cash and disposable income in hands of consumers and may take several months before we see the effects. Short term rate hikes to small businesses will be effective immediately."