Viewpoint: How small businesses can weather rate hikes, recession in 2023

Having survived the pandemic, small-business owners are not done battling turbulent times as many are dealing with higher costs, supply chain disruptions, worker shortages and now, increasingly higher interest rates. To battle inflation, the Federal Reserve recently raised its benchmark interest rates by 0.5% in December and then another quarter point on Feb. 1 — to the highest level in 15 years . The Fed also said it expects to push rates higher throughout 2023. Higher interest rates can mean higher borrowing costs, which can put a strain on already tight budgets. There is also growing concern that a recession could be right around the corner, which could create a daunting environment for small businesses that require steady and reliable financing to stay afloat. We don’t yet have a full understanding of the frequency of interest rate hikes for the coming year. But as a 34-year veteran of small business lending, I’ve seen my share of downturns. There are steps that small-business owners can take now to prepare for a looming recession. Business owners who have weathered recessions in the past know that it’s best to secure financing before you actually need it. But those who need capital should […]

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