Much was made in the financial media about the Federal Reserve’s recent quarter percent raising of interest rates. However, for many on Main Street, they don’t see it having a tremendous impact.
In our December 2015 Small Business Scorecard, 45% of small business owners said the rate hike would have no impact; 13% said it would have a positive impact; and 42% said it would have a negative impact.
Many small businesses have turned to alternative lending, making the rates offered by big banks less relevant. Others with only a few employees and little need for equipment or infrastructure are not seeking capital.
Perhaps more concerning is that small business owners are about 10% less optimistic about the economy this December than a year ago. At the same time, they were 5% more profitable in 2015 than in 2014, and most are forecasting increased profitability in 2016.
Still, there may some lingering concerning because of world events, a lagging stock market or the upcoming presidential election.