Small business owner optimism dropped to its lowest level in April since the Wells Fargo/Gallup Small Business Index survey began in August 2003.

The index was 48, compared with its highest score of 114 in December 2006. It is down 35 points from January 2008, the largest quarterly decrease to date.

An index of small business owners’ rating of their current situation dropped 20 points from the previous quarter to 18, and their expectations for the next 12 months fell to 30, a 15-point drop from the previous quarter.

Among the six key areas the survey examines, the most significant changes were in small business owners’ financial situations, their present revenue situations and future expectations for cash flow. Other areas looked at are capital allocation, job hiring and credit availability.

“The nearly 50 percent drop in the index clearly reflects the intensified financial pressures small business owners have felt over the last three months,” said Scott Anderson, Wells Fargo & Co. senior economist, in a release. “The decline in both the present situation and future expectations components doesn’t bode well for a swift recovery in small business conditions. However, as consumers begin to receive – and spend – their economic stimulus checks, this should soon begin easing the blow to small businesses in the third quarter of this year.”