It looks like FICO's positive forecast for small business lending was spot-on after all.
For a second month in May, small businesses ramped up their borrowing, signalling growth for an economy still reeling from the recession, Reuters reports.
The Thomson Reuters/PayNet Small Business Lending Index, which measures the number of loans made to small U.S. companies, rose to 115.1 from 108.1, a number revised in April that was originally 110.5. Over the past year, the index has climbed 9 percent, PayNet said Tuesday.
The increase in lending may point to additional hiring among small businesses, which is a good thing, PayNet president Bill Phelan told Reuters in an interview.
The Thomson Reuters/PayNet Small Business Delinquency Index also revealed those companies are paying back their loans on time. Delinquencies of 31 to 180 days dropped to a record low -- 1.46 percent of all loans made in May from 1.54 percent in April.