The Fed Just Raised Rates for the First Time Since 2023 — What It Means for Selling Your Utah Business

On September 16, the Federal Reserve raised its benchmark rate for the first time since 2023 — a quarter point, to a 3.75%–4.00% target range. Banks moved the prime rate from 6.75% to 7.00% the next day. And the Fed's own projections pencil in one more quarter-point increase before the end of 2026.

If you own a Utah business and have been thinking about selling "sometime in the next year or two," this is worth five minutes of your attention. Here's why.

Why a Fed hike hits business buyers immediately

Most Main Street acquisitions in Utah — the HVAC companies, construction firms, service businesses, and healthcare practices we sell — are financed with SBA 7(a) loans, and most 7(a) acquisition loans carry variable rates priced off prime. For loans over $350,000, the maximum rate is prime plus 3%: that's 10% today, up from 9.75% three weeks ago. There's no lag. When prime moves, every buyer's term sheet moves with it.

The math on a typical deal

Take a $1 million SBA acquisition loan on a 10-year term. At 9.75%, the payment was about $13,077 a month. At 10%, it's roughly $13,215 — about $1,660 more per year. One more hike adds the same again.

The bigger effect is on what buyers can offer. Lenders size SBA loans to debt-service coverage, so the same business cash flow now supports about 1% less loan than it did in early September — roughly 2% less if the Fed hikes again in December. A quarter point never kills a deal by itself. But every hike trims the maximum price a financed buyer can pencil, and it tightens the lender's underwriting at the same time.

What this means for your sale price

So far, pricing has held. Cash-flow multiples for small businesses have been steady at about 2.65x nationally, and well-prepared businesses are still selling at full value — we covered the broader picture in our fall 2026 Utah market update. Rising rates don't crash Main Street prices overnight. What they do is shrink the pool of buyers who can reach your number, and make the ones who remain more selective.

It also widens the financing gap we keep writing about: roughly 90% of buyers expect some seller financing, while only about 29% of sellers offer it. With bank debt getting more expensive, a modest seller note becomes an even stronger tool — it can bridge a valuation gap, beat the bank's rate, and keep a good buyer at your price.

If you're thinking about selling

• Mind the calendar. The Fed projects one more increase before year-end, and a typical Utah business sale takes several months from listing to closing. The rate environment your buyer locks in is the one at closing — listing sooner keeps more of today's buyers in range.

• Bigger deals still work. The SBA's combined 7(a)/504 cap was doubled to $10 million this year, so well-financed buyers can still reach larger Utah businesses — rates affect the payment, not the ceiling.

• Decide your seller-note position early. You don't have to carry paper, but knowing what you would accept — amount, rate, security — before buyers ask puts you in control of the negotiation.

• Get deal-ready now. Clean financials and a defensible asking price matter more in a tighter credit market, not less. Buyers and lenders are scrutinizing everything.

Know what your business is worth before the next move

Rates will keep moving; your decision shouldn't depend on guessing where. It should start with a real number. We provide a free, confidential valuation built on actual Utah sale multiples — no upfront fees, no obligation, and nobody knows you're exploring a sale. If the number works, we'll tell you what we'd do next. If it doesn't, you'll know exactly what to improve before rates — or anything else — change again.