For the past two and a half years, RMMFI has temporarily offered 0% interest on all loans as part of our COVID response. Our goal was to reduce the risk for small business owners as they navigated both the challenges and the opportunities created by the pandemic.
Prior to COVID, our interest rate had been 8%. That was near where bank business loan rates left off and Community Development Financial Institution (CDFI) rates began, meaning RMMFI’s interest rate was already below average for CDFIs.
As we move beyond our pandemic response and our temporary 0% interest comes to an end, we’re excited to announce that we are lowering our permanent interest rate from 8% to 5% starting October 1. Our interest rate will now be firmly in the range of what traditional banks offer for business loans, even as we serve entrepreneurs who are unable to access the services of those banks.
For comparison, the Wall Street Journal Prime Rate is currently 5.5%. While our interest rate is not pegged to prime rates, we’re proud to offer the entrepreneurs we support some of the best rates available on the market.
Access to capital is one of the many ways RMMFI invests in the potential of entrepreneurs across Colorado. Lowering our interest rates is one more step toward creating an equitable and inclusive small business community.