Newtek Business Services, Inc., The Small Business Authority, announced the release of the SB Authority Index of small business indicators for January 2013 reaching 116.79 points.  Newtek merchant processing volume and the Russell Microcap Index led the increase.  The SB Authority index is up .73% from December 2012.

President and CEO, Barry Sloane said, "Despite a negative Flash GDP number for fourth quarter of 2012, of which most of the drag came from government spending reductions, the SB Authority Index was up .73% for January.  We see a strong upwards movement in certain components like the Russell Microcap Index, our own merchant services portfolio processing volumes and SBA loan origination volumes. We think that the likely government sequestration will clearly reduce GDP as government spending contracts, but the private sector appears to be poised and wants to expand. The stock markets and lending markets are leading indicators which will provide nice tailwinds for 2013 with reduced government spending providing the brakes."