It’s a familiar pain point these days: your local mom-and-pop store is closing down. The reason? Interest rates have soared to levels unseen in decades, squeezing the life out of small business owners who are already struggling with high rents, supply chain issues, and fluctuating demand.

The Federal Reserve has been hiking interest rates like it’s their job to break the back of inflation — or maybe just crush small businesses. But here’s a thought: have you noticed how few big corporations are complaining about these hikes? That’s because they’re not the ones paying for them.

These rate increases don’t happen in isolation. They come after years of low rates and easy money, courtesy of previous administrations — especially Obama-era policies that kept interest rates artificially low to prop up a recovering economy post-recession. But now, the Fed is hiking rates to historic levels to cool off an overheated market.

Let me break this down: when you hear about “transitory” inflation or “temporary” economic pain from the Fed, they’re not talking about your small business. They’re not even looking at it in their fancy models and charts. No, they’re talking about some theoretical economy where big banks and corporations don’t have to worry about borrowing costs.

The buried number here is how many small businesses are actually surviving on margins that evaporate the moment interest rates tick up another quarter point. Nobody is going to tell you this on CNN or Fox News. But I’ve been watching this for years, and there’s a reason why small business owners are looking at me with fear in their eyes.

So, who benefits from these hikes? The same folks who always benefit: Wall Street, big banks, hedge funds — anyone who can afford to borrow money on favorable terms. But let's be clear: they’re not the ones paying rent or stocking shelves. They’re not the ones putting food on their employees’ tables.

The real kicker is how these hikes are affecting job creation and overall economic growth. Small businesses are the backbone of our economy, but when interest rates rise so high that new loans aren’t possible, you can bet those same small business owners are cutting back on hiring, or worse — laying off workers to keep their doors open.

Now, how do you protect yourself? You know what I’m going to say: keep your finances in order. Diversify your income streams if you own a business. Stay informed about the real economic trends happening outside of those polished talking points on TV.