Fed Looks For Rate Rise; Small Businesses Could Struggle With Hike
With the Fed’s Lacker intimating there could be as many as four rate hikes this year, the already floundering small-business-economy could see an increase in SBA loan rates.
Why?
The U.S. Government sets a maximum interest rate for all of the loans it backs. That maximum rate is composed of a base rate + a variable rate, which is negotiated between funding institutions and the businesses, and generally sits between 5.75% and 8.25%, depending on loan term and amount.