Explore the latest market intelligence and proprietary data on how U.S. small and middle market businesses are navigating a shifting economic landscape. The Q4 2026 BusinessPulse reveals a widening gap in confidence: small businesses are feeling the squeeze of rising costs and fuel prices, while nearly half of middle market companies expect their financial conditions to improve. Despite the pressure, most leaders still expect to meet or exceed their 2026 goals, and as credit demand cools, businesses are focused on working capital, growth and equipment. Dive into the findings to see how leaders are protecting margins, planning ahead and what it means for the months ahead.
BusinessPulse
Q4 Insight and Analysis of Small Business Sentiment and Economic Trends
BusinessPulse Recap
Q4 BusinessPulse Key Takeaways
Credit Access Holds Strong as Demand Cools
Fewer businesses sought additional credit this quarter, with small business applications at 15% and middle market at 27%, down 10 points from Q3. But those who applied found access: 90% of small business applicants received full or partial approval, along with 98% of middle market applicants. This points to lenders remaining open to businesses ready to borrow.
Confidence Is Diverging by Business Size
Small business financial condition expectations for the next 12 months fell to their lowest level in nearly six years, with 33% expecting lower profits. Middle market companies are more optimistic, with 46% expecting improved financial conditions and just 13% expecting deterioration. Even so, most still expect to meet or exceed their 2026 goals: 54% of small businesses and 59% of middle market companies.
Rising Costs Remain the Top Concern
Cost pressures continue to weigh on both segments. Among small businesses, 73% are concerned about high fuel prices and 71% about the increasing cost of doing business. Middle market concern is even higher, at 83% for cost of doing business and 81% for fuel prices. As a result, 55% of middle market companies and 45% of small businesses plan to raise prices.
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 business confidence and cash reserve pressures to the top concerns facing small business and middle market owners.
- Keep up with rising costs and protect your margins
- Cover day-to-day expenses with working capital
- Build up your cash reserves so you have a cushion
- Buy the equipment you need to grow
- Fund your next stage of growth
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.