Small business owners are collectively breathing a sigh of relief at the Federal Reserve’s widely-anticipated decision to cut interest rates last week, and new data show owners expect to put that increased capital to work.
CNBC and SurveyMonkey’s Small Business Survey for Q3 found that owners said lower interest rates will lead them to increase investments, expand their business or increase inventory. The poll was taken September 3-9, before the Fed meeting where a rate cut was expected, among a national sample of 2,276 self-identified small business owners ages 18 and up online.
Main Street has been closely monitoring interest rates. Data from the National Federation of Independent Business, a small business lobbying group, found interest rates on short maturity loans stood at 9.5 percent in August of this year, up from 7.6 percent in January of 2023. In addition, 60 percent of owners said they were not interested in borrowing right now, due in part to high …