Proceeds go to the Opportunity Finance Network, a nonprofit organization that supports hundreds of Community Development Financial Institutions, local organizations that lend money at low interest rates to small business owners in under-served areas.
Now, it is possible that the prospect of fast economic growth will cause the financial markets to view us as creditworthy again, and that private investors will be willing to lend us money at reasonable interest rates in order to finance our economic recovery program.
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This is one of the calculations you should make before deciding to lend them money and it should certainly inform the interest rate at which you are willing to lend that money.
Banks generally will not lend funds in the money market at an interest rate lower than the rate they can earn risk-free at the Federal Reserve.
The fund would then be a substantial firewall, with the ability to lend money to Italy, Greece and other countries at low interest rates, helping them cover their debts until the austerity measures being imposed bring their debt loads under control.
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That's because the banks committed to lend the money at one rate, but had to raise the interest to attract investors, if they could.
The Fed has declared the ability to pay banks not to lend money by paying interest to banks for money on deposit at all Fed banks.
GE's gold-plated credit rating lets Neal borrow money at 3% to 5% interest and lend it out at rates of 10% to 12%, on average.
And prime rate would clearly be the wrong interest rate to use for Apple cannot lend money out, risk free, at the prime rate.
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The only beneficiary of accelerated mortgage payments is the bank, whose money you are effectively lending back to it at zero percent interest, money it can hold to bolster its capital requirements or lend to someone else and earn fees by selling the mortgage to a third party.
If the recovery falters, the BoJ could go further, exploring the use of negative interest rates on bank balances, which would encourage banks to lend money rather than hoarding it at the central bank.
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