Unlock strategic insights and proprietary data on the shifting landscape of the U.S. small and middle market. The Q4 2025 BusinessPulse delivers expert analysis on current economic position, financial confidence, and credit outlook. Dive into the latest data to see how businesses are cautiously reinvesting despite cost pressures, why working capital demand is surging, and gain the strategic foresight needed to guide your key decisions for 2026.
BusinessPulse
Q4 Insight and Analysis of Small Business Sentiment and Economic Trends
Q4 BusinessPulse Key Takeaways
Despite the Headwinds, Businesses Are Investing
For the second year, most small businesses reported that financial challenges outweighed gains. While sales are up, high costs continue to squeeze profits. However, we see a strong sign of resolve: capital investments are climbing to their highest point since mid-2024, showing owners are making cautious, deliberate moves to secure their future.
Half of Small Businesses Are Meeting Their Goals
Despite overall confidence falling, small business owners remain grounded and steady. About half of all small businesses expect to meet or exceed their financial goals for the year. This success is coupled with flat optimism, as future confidence ended the year ten points below the level seen 12 months ago.
Confidence is Driving New Credit Demand
While only a small share of businesses applied for credit in the last year, expectations to borrow have modestly increased from recent lows. The key objective for this borrowing is overwhelmingly Working Capital, signaling owners are proactively planning to manage cash flow and operational needs.
Business Owners Speak: Q4 Survey Insights
Curious how your company stacks up against national trends? We break down the key findings from our latest quarterly survey, covering everything from shifting capital expenditures to the top concerns facing small and middle market business owners.
- How businesses are investing in the future
- Business owner’s top concerns
- Goals and expectations for the end of 2025
- How we’re supporting business owners
From our resource center
As part of our commitment to supporting small business owners, we have a library of free educational resources available to anyone. Here’s what you can expect to find in Live Oak Bank’s Resource Center:
- Loan product overviews
- Marketing tips and tricks
- Small business fundamentals
- Live Oak customer spotlights
About Barlow Research
Barlow Research surveys more than 2,800 companies annually across the U.S. to gather current viewpoints and draws on years of data to provide in-depth research on economic trends to the commercial banking sector. Barlow has a long-standing relationship with Live Oak Bank, primarily through powering the BusinessPulse. In addition, Barlow Research has provided industry analysis for vertical selection, competitive intelligence on the digital account opening and lending processes. Live Oak Bank is also a member of Barlow Research’s flagship Small Business Banking program.