In January 2018, small business loan defaults improved in Iowa, with default rates in 10 of the 18 major industries falling in the state, according to data published by PayNet.

The PayNet Small Business Default Index (SBDFI) for Iowa registered at 1.38% following a 4 basis point improvement from December. Compared to the national SBDFI level of 1.82%, Iowa's SBDFI was 44 basis points lower. Iowa's SBDFI increased 6 basis points over the last year, whereas the national SBDFI declined 2 basis points.

The industries with the worst default rates in Iowa were Transportation and Warehousing (3.21%); Accommodation and Food Services (2.39%); and Information (2.34%). Nationally, Transportation and Warehousing had a default rate of 3.91%, with a difference of -0.40% compared to the prior year, while Iowa had a variance of -0.18%.

Registering at 93, Iowa's PayNet Small Business Lending Index (SBLI) rose 0.3% from last month's state level, but was 8.5% lower than this month's national SBLI level (101.7).

"Recent improved financial health exhibited by Iowa's small businesses set the stage for expansion with low credit risk," states the president of PayNet, William Phelan.