Updated: Sep 22, 2022
As anticipated the Federal Reserve raised interest rates by another .75%. This increase, and more to come, will hit variable interest rate loans directly - conventional C&I immediately, and SBA loans will reset as we come into Q4.
But there is more...Bill Dunkelberg, chief economist at the NFIB, stated in the August Economic Trends report, "Inflation remains the #1 problem for small business owners. To slow inflation, costs coming in the back door must fall and that includes more that the cost of loans. Utilities, fuel, labor, supplies, materials, rent, and inventory, all rising at near double-digit rates." (SBET)
Well, for some the cost of loans is clearly going up...