As expected, the Federal Reserve met this week and decided to proceed with its second scheduled rate hike here in 2018.
The interest rate increases 0.25% or 25 basis points effective immediately. This change will now bring the rate cap on SBA financing to a maximum rate of 7.75% now that the prime rate has reached a flat rate of 5.0%.
The Federal Reserve has also signaled that there are two additional hikes coming within the calendar year to help keep pace with inflation. If each rate hike brings about another rise of 25 basis points, we could be looking at interest rates of 8.25% to round out the year.
Unfortunately, interest rates on savings aren’t increasing proportionately. So, how do you maximize your money and realize your dreams of entrepreneurship? With the Rainmaker Plan® from Benetrends, you don’t need to be concerned with interest rates – you have access to your 401(k)/IRA funds, tax-deferred and penalty-free.
As the pioneers of this type of funding, known as Rollover for Business Start-ups, or ROBS, we know that when starting a new business, the goal is to keep expenses down and focus on business growth. The Rainmaker Plan is designed to help entrepreneurs start a business, cash-rich and debt-free. Watch our webinar to learn more.