§ 8034 City Interest Rate Limit

• •The highest interest rate allowed is 8% per year.
• •The city council decides the exact interest rate.
• •The rate cannot go above 8%, no matter what.

You borrow $100 from the city for a small business loan.

The city council sets the interest rate at 5% per year. You pay back $105 after one year. If they tried to charge 10%, that would be illegal because it’s over the 8% limit.