Unlock strategic insights and proprietary data on the shifting landscape of the U.S. small and middle market sectors. The Q1 2026 BusinessPulse uncovers how companies are navigating cost pressures while staying focused on stability, liquidity and long‑term opportunity. Dive into the latest data to see how other business owners are preparing for what’s next and what it means for the year ahead.
BusinessPulse
Q1 Insight and Analysis of Small Business Sentiment and Economic Trends
BusinessPulse Recap
Q1 BusinessPulse Key Takeaways
More Than Half of Small Businesses Are Meeting Their Goals
Although the increasing cost of doing business remains a top concern for small business owners, they remain optimistic about their financial goals. About 63% of small business owners expect to meet or exceed their financial goals for this year.
Operating Costs Remain a Top Concern
Small businesses are experiencing financial pressure, with sales and profits dipping as operating costs remain elevated. Yet there’s a clear signal of resilience: tighter capital spending reflects intentional, cautious decision‑making as owners focus on stability and long‑term viability.
Line of Credit Renewals are Rising
Businesses are increasingly choosing to renew or extend existing lines of credit, even as demand for new or additional financing remains flat. And while overall credit trended down, a growing number of businesses expect to seek additional financing in the year ahead – primarily to support working capital needs as they plan for ongoing cash flow and operations.
Business Owners Speak: Q1 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 plan to borrow capital
- Business owner’s top concerns
- Financial expectations for 2026
- 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.