We simplified the tax structure, rationalized fiscal incentives, reduced personal and commercial income tax rates, increased excise taxes on oil, cigarettes, and sweetened beverages. With the new tax system, the incoming administration will be in a better position to face the challenges of the post-COVID economy.
Some recent empirical research suggests that this characterization of the bank-small business borrower relationship is accurate. For example, as the relationship matures, banks typically reduce the interest rates charged and often drop the collateral requirements on small business loans.