Borrowing by small American companies stalled in March, with the policy uncertainty created by the Trump administration cited as the main reason for business owners failing to invest.
According to Reuters, The Small Business Lending Index for March registered 134, down by a percentage point from the same time last year.
It’s after economic growth in the United States slumped to its slowest rate in three years, registering only 0.7% for the first quarter.
Small businesses refused to be swayed that Donald Trump's planned corporation tax cuts will have any positive impact for them according to Bill Phelan, PayNet's chief executive and founder.
"They didn't get sucked into all the euphoria of public markets; they are just, ‘Wake me up when we are there.’
"There's not going to be any kind of enthusiasm."
Some additional research found that small companies are not avoiding new debts because of troubles paying off old ones. Data from PayNet showed the share of due loans more than 30 days past was 1.68% in March, unchanged from the previous month.