Advantageous interest rates can only benefit you, as they help keep your credit score high and make loan payments more manageable. Borrowers with great credit will reap these benefits as banks cut prime interest rates, making it the perfect time to invest in a business, if you feel so inclined.
Prime Time
Following the September Federal Reserve meeting on Wednesday, national banks, including JPMorgan Chase, Wells Fargo, Citigroup and Bank of America, dropped their prime lending rates to 7.25%, down 25 basis points from 7.5%.
It’s the lowest prime lending rate for borrowers in nearly three years, since the prime lending rate was 7% in November 2022.
The move from the national banks came as the Federal Reserve lowered its benchmark interest rate in response to inflation, tariffs and a lower-than-expected number of new jobs added across sectors.
Only 22,000 new jobs were added in nonfarm sectors in August, and the unemployment rate rose from 4.2% to 4.3%, according to an August Bureau of Labor Statistics report.
Entrepreneurs, Take Advantage of the Dip
Prime credit borrowers, or those with a credit score of 660 or higher, can benefit the most from these reduced interest rates. If you’ve been waiting for years for interest rates to tank before taking out one of the best small business loans, now’s the time to start solidifying plans.
| COMPANY | FORBES ADVISOR RATING | BEST FOR | LOAN AMOUNTS | APR | MINIMUM CREDIT SCORE | LEARN MORE |
|---|---|---|---|---|---|---|
| | Best for No Minimum Credit Requirement | $5,001 to $1 million | 8% to 40% | None | From participating partners via businessloans.com’s website | |
| | Best for Low-Interest Rates | $10,000 to $1 million | 8% to 16% | 615 | From participating partners via businessloans.com’s website | |
 | Best for Limited Credit | $7,500 to $500,000 | Factor rates start at 1.10 | 600 | On Quickbridge’s Website | |
| | Best for Low Fees | $5,000 to $500,000 | 14% to 95% | 625 | On Bluevine’s Website | |
| | Best for Short-Term Loans | $5,000 to $500,000 | Buy rates start at 1.11 | 600 | On National Funding’s Website | |
| | Best for No Hard Credit Check | $5,000 to $250,000 | 13.50% to 99.90% | 625 | Via Ondeck’s Website | |
 | Best for Loyalty Perks | $5,000 to $500,000 | 8.15% to 10.55% | Does not disclose | From participating partners via businessloans.com’s website | |
| | Best for Online Businesses | $5,000 to $100,000 | 10% to 19% | 580 | From participating partners via businessloans.com’s website | |
| | Best for Large Loans | $5,000 to $5 million | Starting 6.2% | 650 | From participating partners via businessloans.com’s website | |
| | Best for In-Person Borrowing | Start at $10,000 | 7.5% to 22% | 700 | From participating partners via businessloans.com’s website |
When applying for a small business loan, it can be easier and speedier than you’d think. Companies like Rapid Finance offer funding within hours of approval. The downside is that it may be a better option for those with some business experience—around two years—under their belt.
Low-interest rate loans include ones from TD Bank, which doles out increments from $10,000 to $1 million, with no origination fees. The downside is that if you’re looking to borrow anything more than $250,000, you’ll have to show face in a branch for approval.
Bottom Line
If you’re a prime borrower, chances are the sky’s the limit when it comes to most loans—especially now that interest rates have taken a dip. Take your time and make sure to shop around, compare terms, loyalty offers, fees and interest rates before making your decision.
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