Citizens Financial Group, Inc. has announced a prime lending rate increase for Citizens Bank, N.A., raising it from 8.00% to 8.25%, effective Thursday, May 4, 2023. The change in the prime rate will impact small business owners who rely on borrowing funds for their operations and growth.

Citizens Financial Group, Inc. is among the nation’s oldest and largest financial institutions, with $222.3 billion in assets as of March 31, 2023. Based in Providence, Rhode Island, the group provides a wide range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions.

Through its Consumer Banking division, Citizens delivers an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,400 ATMs and over 1,100 branches across 14 states and the District of Columbia. The division’s products and services include a comprehensive range of banking, lending, savings, wealth management, and small business offerings.

Citizens’ Commercial Banking division provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.

Impact on Small Business Owners

The prime lending rate is a benchmark interest rate used by banks to set rates on various types of loans, including small business loans. An increase in the prime rate can lead to higher borrowing costs for small business owners, potentially affecting their ability to secure loans for expansion, equipment purchases, or working capital.

Small business owners should be aware of this change and evaluate their borrowing needs accordingly. They may want to explore alternative financing options, such as SBA loans, business lines of credit, or non-traditional lenders, to find the best rates and terms for their specific needs.

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