The Globe and Mail reports in its Friday edition that small businesses have historically had two primary ways to raise capital: debt or equity financing. The Globe's guest columnist Daryl Ching writes that the recent sharp increase in interest rates, however, has made it more difficult for small businesses to access debt financing. For example, the Bank of Canada policy rate increased from 1.75 per cent in March, 2020, to 5 per cent by July, 2023. As a result, small business loans for companies in good standing have surged from 6 to 7 per cent to over 9.5 per cent, making it challenging for many businesses to afford higher interest payments. This situation has led many small businesses to explore alternative sources of debt financing, such as federal tax incentives or loans from subordinate debt providers. These high rates further burden small businesses, making it difficult for them to service their debts. As a result of these challenges, many small businesses have been forced to turn to the equity market for financing. Business owners who never previously considered selling shares of their business are now seeking growth capital and, in some cases, using the proceeds to pay down their high-interest debt.