Interest Rates Remain Steady

arrowspin6_meda68d0fEarlier this month, the IRS announced that interest rates will remain the same for the calendar quarter that begins on October 1.

For clarification, interest rates for this quarter will be:

  • 3% for overpayments (2%for corporations).
  • 3% for underpayments.
  • 5% for large corporate underpayments.
  • ½% for the portion of a corporate overpayment exceeding $10,000.

Smaller businesses that are considering taking out a loan for expansion or other project should welcome this information. However, it is a good idea to consider taking out loans now versus later. Remember that you can shop around for a loan – different lenders may offer more agreeable terms.

If you are considering a loan, it is wise to conduct your research before making this move. Take the time to figure out long-term and short-term benefits. Do not forget that you will also be taking on more debt, but at a manageable rate.

A loan can be used for a variety of reasons, including:

  • Purchasing new equipment for your business
  • Expansion into new areas or markets
  • Research and development
  • Boosting your marketing strategy

Besides doing your own research, you should discuss the move with your financial advisors, both internal and external. A lengthy discussion with your CPA will also help in making the right decision.

Prepared by Chad Seifert, CPA, CGMA, a Principal at KatzAbosch and a Manager of the firm’s Small Business Services Group.  For questions, please contact cseifert@katzabosch.com or call 410-828-2727.

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