We are in the contraction part of credit cycle which means rates climb and lending becomes more strict, this phase of the cycle is often referred to as the tightening phase of the cycle..
So this means that most likely the cost to borrow money for our small business will be more in 6 months from now, and even 12 months from now. For how long rates will go up is not known yet.
Getting funds for a start up or for expansion starts with a good business plan and lenders who will view your plan and your credit ratings and reports. The probability of success of your plan will be the most influential factor in whether the loan is approved.
The second most important thing is you and your partners personal credit scores, and credit history and reports. There is at least four agencies that provide a type of a credit score that lenders look at. These four or more agencies can be monitored by a number of websites (some free, some not) with a quick search of this topic.
A lender may approve funds to a small business even in a contraction phase of the credit cycle because a 1 or 2% different in the fed funds target rate doesn't really matter all that much in the question of, are people to go purchase your businesses products and services from the small business that is applying for the loan.
So as we monitor the current economy our small business operates in, we acknowledge the credit cycle, where we are in that cycle, and we understand that the interest rate of a loan is not what determines if we get the loan, it is only the price or the money if we get approved.
The advantage to getting approved during this early stage of the contraction phase, is that you can lock in to low fixed borrowing rates, but you still need the good credit score and business plan.
The current contraction (tightening) phase of this cycle will go on for two more years, but as always, the outlook could changes as the data comes in.