Announcement: Rates are Dropping
- Lower Interest Rates Are Coming – The Prime Rate is expected to drop from 8.5% to 7.75% in 2024, reducing borrowing costs.
- Higher Loan Approval Amounts – As rates decrease, debt servicing requirements ease, allowing businesses to qualify for larger loan amounts.
- Act Now to Lock in Lower Rates – High application volumes are expected, so business owners should apply early to secure better terms.
Key Action Points
- The cost of capital for all our small business lending programs will see reduced rates, apply now to reserve your pre-approval.
- Claim your spot in line: We are experiencing high amount of applicants.
- The Fed will be lowering interest rates: SBA and Business Loan borrowing costs will decrease.-Get Pre-Approved for anticipated Rate Drops
- Since Rates are dropping, Approval Amounts are Increasing
- Prime Rate could move from 30 year historic highs of 8.5% to 7.75% within 2024.
This and future expected rate cutes translate into lower borrowing costs to business owners.
After a 30 year high, Prime Rate is expected to lower. Companies that have been forced to borrow at higher costs will directly benefit from the lower interest rates.
Now, because of the rate cuts, we are seeing larger approval amounts for small business loans and lines of credit.
The lowering of interest rates directly reflects Prime Rate, which is the debt interest rate provided to business owners. Prime Rate is the basis that our bank partners use to set credit interest rates on small business loans and lines of credit. The cost of capital for all our small business lending programs will see reduced rates.
In preparation for the rate cuts, we are seeing that working capital approval amounts are higher. Since rates are dropping, debt servicing requirements will lower as well. This means that approval amounts of loans will increase.
With the announcement of lower rates, there is now significant interest in small business working capital loans. We are seeing an increase in applications and approvals. To lock in the lower rates, we urge business owners to apply now. Act now and your business will benefit from the rate cuts.
This is great news for small business owners. From a affordability standpoint, the money cost will be more affordable. For perspective, here is a comparison on the effect of interest rates for a $500,000 SBA loan, comparing the cost of capital from 2019 to 2024, where prime rate was about half.
First Year Loan Amortization for $500,000 10 year note 2024
First Year Loan Amortization for $500,000 10 year note 2019
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