The impact of rising interest rates in the US on small businesses

Global Business

The impact of rising interest rates in the US on small businesses2

Rising interest rates in the U.S. mean higher financing costs for small businesses. And as many small business owners don’t qualify for traditional loans, they usually turn to alternative lenders who can charge astronomical fees.

CCTV America’s Karina Huber reports from New York.

The impact of rising interest rates in the US on small businesses

The impact of rising interest rates in the US on small businesses

Rising interest rates in the U.S. mean higher financing costs for small businesses. And as many small business owners don't qualify for traditional loans, they usually turn to alternative lenders who can charge astronomical fees.

With rising rates, there has been some concern that money for alternative loans will dry up. This is because when rates are higher, hedge funds can get higher returns with less risky investments.

The Federal Reserve has made it very clear that it will raise rates gradually only if the economy continues to improve. Right now, the global economy is not looking too hot. So, the consensus seems to be that interest rates won’t have much of an impact on the alternative lending market anytime soon.


CEO John Allison on the interest rate increase on loans

CCTV America’s Michelle Makori interviewed John Allison, CEO of Unio Capital.

CEO John Allison on the interest rate increase on loans

CEO John Allison on the interest rate increase on loans

CCTV America's Michelle Makori interviewed John Allison, CEO of Unio Capital.