The Effect of Interest Rate Hikes on Small Business

By the time you see the late news, you'll know backwards and forwards that the Federal Reserve Bank didn't raise short-term interest rates, but may do so again in August.

In the meantime, how does this affect small business? More and more CPAs and accounting professionals rely on the small guys for their bread and butter income, so what kind of effect does a rate hike really have on the economy for the small business owner?

Plenty, most of which has to do with financing the start-up or new business venture. Rising rates are heavily linked to a perceived lack of venture capital and funding for start-ups.

With six hikes in the last year totaling 1.75 percentage points, it's easy to see why small business owners are sweating, and why the big guns with the money aren't willing to fork it over just for the promise of future profits.

You may like these other stories...

The Financial Accounting Standards Board (FASB) has relaunched its technical agenda web page, which Chairman Russell Golden said will inform visitors at a glance on where any given FASB project stands, the steps it took to...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...
Read more from Larry Perry here and in the Today's World of Audits archive.AU-C Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks, paragraph ....

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.