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Study: Small Business Lending Weakened In January

NEW YORK (AP) â¿¿ Small business owners are still holding back from borrowing.

A study of small business lending released Tuesday by Thomson Reuters and PayNet shows that owners took out fewer loans and leases during January. An index based on the study fell to 113 from 115 in December and is virtually unchanged from a year ago.

The study shows that owners are cautious although some of the political uncertainty of the last few months â¿¿ the election and negotiations in Congress over taxes â¿¿ has been resolved. Many owners are concerned about the impact on their earnings of the health care law that will take effect next year.

The study was compiled from data on commercial loans and leases in PayNet's database. The company provides credit ratings on small businesses.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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