U.S. small businesses were increasing their borrowing and leasing activity to end the year, according to Equifax.

The company’s small business lending index was up 7% year over year in December and also edged up 1.5% over the November level, the company said.  The seasonally adjusted index tracks the volume of new commercial loans and leases to small businesses.

Loan delinquencies were also down slightly in December, suggesting that small businesses in the aggregate have been under less financial strain, according to Equifax.

Small business lending activity has “improved,” an indicator that the economy was strong to start the year, Equifax wrote in a report.

“The most recent employment report suggests the labor market is in good standing,” Equifax wrote.

“However, there may be an unusually high degree of policy uncertainty that could impact the economy’s near-term trajectory, including heightened consumer anxiety and the risk of inflation reigniting,” the company said.