The state of the economy, specifically interest rates, has a pronounced effect on SBA lending and dealmaking in the small to medium-sized business (SMB) space. As rates increase, businesses become less willing to take on additional debt, and bank lending to SMBs tightens. In contrast, low rates make borrowing more attractive and can encourage M&A activity as buyers have greater access to capital. The current climate of low rates has been a tailwind for the SMB space, but as the Federal Reserve continues to hike rates, that is already changing.  One particularly important reference point for the small business M&A space is the FED rate, particularly when it comes to leveraged deals.  For our next Twitter Spaces, we will talk about the impact of interest rate hikes, inflation, and how experts are seeing deals get done in the current economic environment. This event took place right after the next FED decision on November 2, so we has recent rate increase facts to discuss with our guest.   Welcome to another episode of Private Market Insights, our Twitter Spaces series where we discuss important topics related to the small business M&A industry. We’re covering a particularly hot topic today: FED rate hikes and the impact of monetary policy on SBA Loans.   We are excited to host Jared W. Johnson, Vice President at First Internet Bank, where they specialize in nationwide lending solutions for small businesses. Jared is a business acquisition specialist that provides customized solutions to clients nationwide, so he is best positioned to understand the impact of a rising rates environment on lending solutions, and the overall SMB acquisition process. He regularly deals with business acquisition financing between $350,000 and $10,000,000 and was recently named SBA BDO of the year by Coleman Publishing.

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