Canadian small business lending picks up in October-PayNet

OTTAWA, Dec 15 (Reuters) - Commercial borrowing by small
businesses in Canada climbed in October, data from PayNet showed
on Tuesday, a sign that companies in the energy-dependent
economy are adjusting to sharply lower oil prices and showing
signs of expanding once more.
PayNet's Canadian small business lending index rose to 140.8
from September's 135.7. But the index of medium-sized businesses
indicated some weakness, slipping to 204.6 from 209.5.
The data is collected by small business credit rating agency
PayNet as reported by lenders. A small business is defined as
one that has less than C$1 million ($730,000) in total credit
outstanding.
Canada, where oil is a major export, was in recession in the
first half of the year as the economy was hit by the shock of
lower oil prices. Although growth resumed in the third quarter,
early data has suggested the fourth quarter got off to a weak
start. The recent renewed downturn in oil prices to near 11-year
lows has reignited concerns about the country's economy.
"It's good news in that the small businesses are buoying the
economy and they're showing the road to transition and to the
new economy for Canada," said PayNet's president Bill Phelan.
"What's disappointing is that the medium-sized companies
still haven't been able to fully stabilize," he said.
Among small business sectors, accommodation and food led the
pack with a 6.8 percent gain. Some sectors that are sensitive to
natural resources saw a pick-up, including a 2.9 percent
increase for manufacturing, although agriculture fell 2.9
percent.
Delinquency rates continued to show stability, with the
percentage of small businesses that were 30 days or more behind
on loans falling to 0.92 percent from 0.94 percent. The number
of companies that were more than 90 days behind held steady at
0.32 percent.
($1 = 1.3739 Canadian dollars)