If you’re a small business owner, now might be the perfect time to consider expanding your business or securing funding for new projects.
The Federal Reserve recently cut interest rates by half a percentage point, the first since the early days of the COVID pandemic. This has important implications for you as a small business owners, especially if you’re thinking about taking out a Small Business Administration (SBA) loan.
Lower interest rates mean that borrowing money becomes less expensive, which can be a major game-changer for your business. SBA loans, which are already known for their favorable terms compared to traditional loans, are about to become an even more attractive option.
Curious as to why? SBA loans typically offer longer repayment periods and lower down payments, but the interest you pay on the loan is a major factor in how much it will cost you in the long run. With this rate cut, the cost of borrowing decreases, meaning lower monthly payments and more capital available to invest in your business.
This rate cut could make the difference in whether your business is able to expand, hire new employees, or invest in new equipment. The opportunity to secure a loan with a lower interest rate might be the push you need to take your business to the next level.
Now’s the time to explore your options and see how this change can benefit your bottom line. Whether you’re looking to start a new venture or grow an existing one, the Federal Reserve’s rate cut might make it easier, and more affordable, to achieve your goals.
As a Preferred Lender with the SBA, Stone Bank’s team of small business lenders can assist you with navigating the changing landscape of government-guaranteed loans*. If you have questions about how an SBA loan can benefit your business, you can email us at SBA@stonebank.com.
*Loans subject to credit approval and other program requirements. Call (833) 253-2265 for details.