When the Federal Reserve announces an interest rate cut, it often makes headlines as a win for borrowers. Lower rates reduce the cost of mortgages, auto loans, credit cards, and even business financing. Homebuyers may suddenly afford a bigger house for the same monthly payment. Families carrying credit card balances see interest charges drop. Businesses can borrow more cheaply to expand operations, potentially fueling job growth and economic activity. From this perspective, lower rates act like a stimulus—encouraging spending, borrowing, and investment.

Recent data paints a concerning picture: 66% to 74% of small businesses (those with 100 or fewer employees) do not offer retirement plans to their workers. According to Fidelity Investment’s 2023 Small Business Retirement Index, only 34% of small businesses provide retirement savings options, leaving 66% without.

As a small business owner, you’re always looking for ways to optimize your finances while attracting and retaining top talent. The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and its follow-up, SECURE 2.0 (2022), offer powerful opportunities to achieve both goals by providing tax credits for establishing retirement plans, such as Simplified Employee Pension (SEP) IRAs or SIMPLE IRAs, for your employees.