Lower Interest Rates Fuel Small Business Growth, Says White House
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Lower interest rates are good news for small businesses, according to a blog post published by the White House's Council of Economic Advisers (CEA) on September 30. The post highlights how recent reductions in interest rates and new Administration initiatives will benefit thousands of small businesses across the country.
With the Federal Reserve recently cutting interest rates for the first time in over four years, many small businesses, particularly those relying on bank financing and floating-rate loans, are poised to benefit. The CEA points out that 80% of Small Business Administration (SBA) 7a loans have variable interest rates, meaning as many as 200,000 small businesses could see lower loan payments as soon as October 1st.
Furthermore, the CEA notes that the SBA has introduced new rules to simplify the refinancing process for small businesses with fixed-rate loans, allowing them to take advantage of the falling rates.