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Banks nationwide recently lowered their prime interest rate after the Federal Reserve lowered interest rates recently.
Wells Fargo and PNC Bank were among several lenders that announced last week that their prime rates are now 7.75%, down from 8%.
This decision followed an announcement by the Federal Reserve on Nov. 7.
The Fed decided to lower the federal funds rate (the interest rate at which banks lend to each other) by 0.25%, bringing it to a range of 4.5% to 4.75%.
Lower interest rates at banks should be some welcome news to small business owners nationwide.
Small businesses that rely on loans to fund operations, expand, or manage cash flow will find borrowing more affordable, reducing their interest expenses.
They may also find it a little easier to qualify for loans or expand their lines of credit.
Lower interest rates often boost consumer spending, too, which would really be welcome news to small businesses during the holiday shopping season and beyond.
Image: Canva
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