| Register/Subscribe Home |
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | | MARCH 28, 2001 FINANCE Small-Business Loan Rates Drop Sharply New data from the Federal Reserve confirms that the cost of borrowing has decreased -- and is likely to go even lower
New data from the Federal Reserve's first-quarter survey of banks show rates on business loans of less than $100,000 dropped to 9.45%. That's down from 10.32% in last year's final quarter and 10.36% at midyear, putting rates at about the same levels that prevailed during the boom of late 1999. On larger loans of up to $1 million, rates stood at 8.63%, down from 9.65% in the prior quarter and off more than a full point from their peak in the third quarter of 2000. What's more, since the survey was conducted in early February, before the Fed's latest rate cuts, borrowers are likely to see even better deals at the bank today. ANY TAKERS? Another bright spot is that bankers may have finished tightening up on key provisions: Requirements for collateral, calls, and prepayment penalties saw little change vs. the fourth quarter. That meshes neatly with other surveys by both the Fed and private groups showing weak demand for small-business loans over the past two years, regardless of whether rates and terms were getting better or worse. With the economy slowing and the specter of a recession looming, the question now is whether anyone wants to borrow money regardless of the price. A complete look at current data on small-business credit markets -- including rates, terms and forecasts -- can be found in BusinessWeek Online's Small Business Rate Report.  By Rick Green in New York  | | |
 Copyright 2001 , by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Policy |
Printer-Friendly Version
