The Federal Reserve's interest rate policy is one of massive market intervention where the Fed issues newly printed dollars into the economy through selected private banks (roughly 23 of the biggest Chase, Morgan,Citi, etc) artificially increasing the "supply" of dollars available thereby reducing (artificially through manipulation) the cost of borrowing.
This policy has been pretty much the status quo now for quite a while and the results have been devastating to small business owners, retiree's and savers.
When business owners see the factor rates private commercial lenders charge for their capital many are shocked at the actual cost of money however, those rates are closer to what the real cost for capital actually is since those rates are a product of fair supply & demand price discovery factoring for risk.
Private lenders not subsidized by the Fed have to retrieve their capital with interest - does ANY business owner really believe the SBA would survive as a lender in the free market? Has anyone ever wondered how an SBA loan can charge 3.74% (unsecured) annual when VISA & Mastercard charge 29% for cash advance?
"The disastrous era of negative rates may be ending but it is not over. Imposing negative nominal and real rates is a colossal error that has only encouraged excessive indebtedness and the zombification of the economy. However, nominal rates may be rising but real rates remain deeply negative. In other words, rates are still exceptionally low for the level of inflation we have."
This explains why short term capital rates haven't budged even though conventional rates have exploded higher. In fact, short term working capital rates from private lenders ARE GOING DOWN! That's because demand for short term money is weak right now as we enter the first inning of the mother of all recessions. Yes, we are in one and it will get way worse so here are some Guerrilla (not Gorilla) lending strategies that will help.
As I said above rates are actually getting lower so it's less expensive to use short term capital. You need to find a home for it quickly however because holding it in cash is a liability right now. $1 Million in Cash loses $128,000 in purchasing power annually at this level of inflation - you need to put the money to work in your business so it's return exceeds the costs.
Pricing power has never been stronger; if your business has demand extra capital can produce significant returns especially when the rate is fixed and not variable.
Negative rates will be with us for a while because printing money is the only tool the government has to fight inflation which is like saying gasoline is the only tool the firefighters have to battle the raging inferno. Purchasing power destruction is about to go parabolic - use short term capital quickly to shore up inventory and turn-over.