Small business activity grows despite rate hike

MICHAEL JONES | December 19, 2016

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Yes, the Federal Reserve raised interest rates again. No, that’s not something that generally pleases small business owners, since higher rates mean traditional loans will grow more costly, potentially putting the brakes on expansion or investment. But the outlook isn’t as gloomy as it might seem. The increase of a quarter percentage point — from between 0.25-0.5 percent to between 0.5-0.75 percent — is only the second hike since rates were cut to nearly zero during the financial crisis. A year ago, a similar move didn’t faze small businesses, research shows.

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