Marketplace · Friday, July 24, 2026
Chris Duncan of LaSalle State Bank notes that interest on business loans hasn't changed much recently as the Fed held rates steady, but anticipates increases. Factors like rising deposit costs for banks and higher energy prices affecting borrowers in industries like timber and trucking could lead to more expensive business loans.
“But Duncan says he thinks they're headed up.”
“And I think that's getting forced by inflation and all the factors that the Federal Open Market Committee has to take into consideration.”
“Another reason that business loan rates could rise is because banks might have to start paying more interest to depositors. So when the higher those deposit costs are going to be, the higher the loan rates are going to be for small business customers.”
“What I'm seeing here in rural Alabama, Northeast Mississippi, is our borrowers are really being hampered by higher energy costs.”