Banks across the country recently lowered their prime rate after the Federal Reserve recently lowered interest rates.
Wells Fargo and PNC Bank were among several lenders that announced last week that their prime rates are now 7.75%, up from 8%.
This decision followed an announcement by the Federal Reserve on November 7.
The Federal Reserve decided to reduce the federal funds rate (the interest rate at which banks lend to each other) by 0.25%, bringing it to a range of 4.5% to 4.75%.
Lower interest rates at banks should be good news for small business owners across the country.
Small businesses that rely on loans to finance operations, expand or manage cash flow will find the loans more affordable, which will reduce their interest expenses.
They may also find it a little easier to qualify for loans or expand their lines of credit.
Lower interest rates also often boost consumer spending, which would actually be good news for small businesses during the holiday shopping season and beyond.
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