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Podcast: Private Market Insights
Episode: Fed Rate Hikes and SBA Loans for Small Business M&A
Description: The state of the economy, specifically interest rates, has a pronounced effect on SBA lending and dealmaking in the small to medium-sized business (SMB) space. As rates increase, businesses become less willing to take on additional debt, and bank lending to SMBs tightens. In contrast, low rates make borrowing more attractive and can encourage M&A activity as buyers have greater access to capital. The current climate of low rates has been a tailwind for the SMB space, but as the Federal Reserve continues to hike rates, that is already changing. Β One particularly important reference point for the small b...