From what I have read, businesses are not simply sitting on a pile of cash, earned from profit. Rather they have a pile of cash and an even bigger pile of debt. Mine as well mortgage the crap out of your company while rates are so low, to hedge against future downturn. It is a cheap way to protect your company against future risk, but to spend it would be a very risky proposition indeed.
Furthermore, what piles of cash sitting out there that do exist, higher rates do not touch. Only future profit gains are affected by higher rates. This has the effect of keeping companies from taking riskier investments because their profit margin is cut. Thereby, making the risk/reward ratio less attractive, not more attractive.
