Small Businesses Are More Exposed To Rising Interest Rates

The AI economy and technology-driven ventures rely heavily on financing, as do smaller businesses. Rising interest rates, driven by market conditions and Federal Reserve policy, can increase borrowing costs, delay investment projects, and weigh on corporate profitability. According to the CFO survey, only 12% of large-company respondents reported being affected by financing costs, compared with 20% of smaller firms. While the overall impact appears relatively contained, smaller businesses seem more vulnerable to higher borrowing costs, a trend worth monitoring if interest rates remain elevated for longer. 

Source: the CFO Survey from richmondfed.org; 9/13/2026