KEY POINTS
The Federal Reserve raised its benchmark interest rate by 50 basis points on Wednesday, which sends small business loans to the double-digits percentage range for the first time in decades.
Small business loans are based on the Prime Rate, which will now be 7.5%, the highest since 2007 and pushing most SBA loans to a 10.5% interest rate.
Monthly interest payments already are much higher than a year ago, but the 10% level is a psychological barrier and a form of sticker shock many business owners have never experienced.
