Interest rates remain low as Wall Street stumbles

8/9/2011

Despite the recent tumult on Wall Street, expanding business owners and entrepreneurs may find now is still a good time to invest in their companies. U.S. interest rates have fallen to their lowest level all year, making it more feasible to refinance business loans and apply for new lending.

Residential 30-year fixed-rate mortgages were at 4.39 percent last week, with 15-year interest rates at 3.54 percent. While rates sometimes drop as the economy slows or struggles, they may change quickly, whether from continued instability or rising markets. If government-backed programs Fannie Mae and Freddie Mac are significantly affected by the current economic situation, mortgage rates could significantly increase.

Refinancing a business loan to a lower fixed rate may be beneficial while numbers are down, but leaping into a commercial loan simply because interest is low can be risky. The U.S. Small Business Administration offers backing and resources for businesses looking for financing, and presenting a winning proposal to a lender may result in the best interest rate on the most suitable loan terms. SBA officials can guide potential and existing business owners through the process, help determine the amount and necessity of a loan and connect individuals with lenders.