As small businesses head into 2026, optimism is fading, even as resilience remains. According to Credibly’s 2025 Small Business Research Report, fewer than one in four small business owners feel optimistic about the U.S. economy, and revenue growth expectations have dropped sharply year over year. The findings reveal a sector that is adapting quickly, prioritizing stability, and rethinking how it accesses capital amid economic uncertainty and rapid technological change.
The Credibly 2025 Research Report
Credibly is an online lender providing loans and cash advances to small and medium-sized businesses across the United States. Each year, the company conducts a nationwide survey of small business owners to analyze shifting economic conditions, access to capital, and emerging trends shaping the SMB landscape.
Approximately 144 verified business owners were surveyed for CREDIBLY 2025 Research Report. They were questioned about their experiences accessing capital amid the impact of high inflation on financial markets and major shifts in artificial intelligence (AI) innovation. Small business owners detailed their experiences in trying to secure financing for survival and growth amid these changes in financial markets.
As it turned out, small business owners remained resilient and learned to adapt quickly. Even though they had concerns about supply chain issues and employee retention, nearly 72% of small business owners reported confidence in the health of their businesses.
Optimism Level Over the U.S. and Local Economies
The survey revealed that only 24% of small business owners were optimistic about the U.S. economy, while 41% were not. In 2024, the survey showed that 30% of small business owners had positive outlooks on the U.S. economy, indicating a 6% drop in American economic optimism within a year.
As for the state of the local economy, around 34% of small business owners were optimistic about their local economies at the present moment. These results show that more small business owners feel good about their local economy than the U.S. economy.
Furthermore, the survey showed that a whopping 68% of small business owners believe the economy greatly influences their financial decisions. If that is true, then only 24% to 34% of small business owners are likely seeking financing to grow or expand their businesses.
Business Performance and Growth Expectations
Small businesses performed rather well in 2025, despite the poor sentiment about the national U.S. economy. According to the survey, 42% of small business owners reported operating their businesses at a profit, 31% reported breaking even, and 27% reported operating at a loss.
Unfortunately, small business owners did not have a positive outlook on their revenue and growth expectations for 2026. Only 38% expect revenue growth in the next 12 months. Another 29% believe revenues will be stable, but 24% expect modest declines, and 9% expect significant losses.
Considering that 70% of small businesses had a positive growth outlook in the 2024 survey, we now have a nearly 32% drop in positive expectations for revenue growth after just one year. This data shows that small business owners are more likely to prioritize financial stability over aggressive business expansion.
The Shift Toward Digital Financing
Traditionally, small business owners and entrepreneurs would visit their local bank branch to seek a capital loan to fund their startups or grow their businesses. Now, as we enter 2026, it appears that more small business owners are turning to online lenders for loans due to their speed and flexibility.
The Credibly 2025 survey revealed a significant shift in the sources of capital for small businesses, with 55% of small business owners turning to online lenders for financing, compared to 44% who turned to traditional banks. According to Canopy’s reporting, the digital lending market is expected to reach $20.5 billion in 2026. That is almost double what it was worth five years ago in 2021.
What Financial Products are the Most Popular?
There is no doubt that the demand for capital among small businesses is high. However, the financing approval process is always the biggest hurdle facing small businesses when applying for different kinds of loans.
Here is a detailed outline of the percentage of financial products applied for versus how many were approved for small businesses:
- Short-Term Loan: 45% Applied – 31% Approved
- Line of Credit: 47% Applied – 13% Approved
- Long-term Loan: 40% Applied – 8% Approved
- Credit Card: 33% Applied – 17% Approved
- Merchant Cash Advance: 22% Applied – 16% Approved
- Equipment Financing: 17% Applied – 4% Approved
The results show that a stunning 34% of small business owners were not approved for lines of credit after applying. It also showed that 32% of them were denied approval for long-term loans. The vast gap between financing application and approval rates reflects the challenges small businesses face, such as low credit scores, insufficient revenue, and the cost of capital.
According to 2025 Federal Reserve data, approximately 75% of small businesses say rising costs of goods, services, and/or wages remain their biggest financial challenge. Because of this, it significantly influences the strategic and operational decisions that small business owners make.
The AI Revolution of the Small Business Sector
It seems like AI is impacting all of modern society, including the small business sector. The Credibly 2025 survey found that many small business owners are implementing AI technologies into their operations. Approximately 36% of small business owners say they currently use AI, while 33% plan to adopt it soon. That means 69.4% of small business owners are either using AI or planning to use it.
The top three biggest uses of AI for small businesses include Marketing & Advertising (77% of respondents), Customer Service (46% of respondents), and Business Analytics or Reporting (44% of respondents). Since the latest AI tools are user-friendly, people without technical backgrounds can easily use them to run their small businesses. And yet, 29% of survey respondents say their lack of expertise and knowledge in AI is preventing them from implementing it into their businesses.
Across specific industries, about 72% of professional service firms and 64% of retail businesses have adopted AI. On the lower end, only 38% of food and beverage establishments have adopted AI. These results indicate that relevant AI solutions are more readily available for some industries than others.
Conclusion
The takeaways from the Credibly 2025 survey for small business owners are clear 1) Be prepared to adapt to uncertainty; 2) save money to cover operating expenses for at least six months in case of emergencies; 3) build a strong financial profile to achieve a good credit score; and 4) stay current on the latest technologies that could help your business.
