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Nav News: The Latest in News Impacting Small Business Owners

Gerri Detweiler's profile

Gerri Detweiler

Education Consultant, Nav

February 7, 2025|25 min read
Stylized photo of street with shops to illustrate article about small business news updates

Editorial note: Our top priority is to give you the best financial information for your business. Nav may receive compensation from our partners, but that doesn’t affect our editors’ opinions or recommendations. Our partners cannot pay for favorable reviews. All content is accurate to the best of our knowledge when posted.

Nav’s weekly roundup of news impacting small business owners.

Week of March 28, 2025

Small Business Owners Are Looking for Loans

The Kansas City Federal Reserve reports that small business loan demand increased for the first time since first quarter 2022, but fewer loan applications were approved. And separately, the Fed’s 2024 Annual Credit Survey reports that just 41% of business owners who applied for financing received all the financing they sought, 36% received just some, and 24% received none.

Why it matters: The gap between business owners who want to borrow to grow their businesses, and banks that are willing to make these loans, is increasing. Business owners may look for alternative financing options, including online lenders.  

Executive Order May Impact Microloan Programs

President Trump signed an executive order eliminating non-statutory functions of several government agencies, including the Community Development Financial Institutions Fund. The CDFI Fund’s mission is “expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers.” The fund has awarded more than $8 billion to CDFIs, community development organizations, and financial institutions since its founding in 1994. 

Why it matters: CDFI programs leverage as much as $8 in private-sector investment for every $1 of public funding. Microloans to small businesses are one of the programs offered by some of the 1,432 CDFIs in the US. These loans can be an important source of small business financing to entrepreneurs who may have trouble accessing capital. 

Howard Pettigrew, president of the Opportunity Finance Network, which represents CDFIs, says OFN is “fighting to ensure that federal support continues for the vital work that community development financial institutions deliver to Main Street.”

SBA 7(a) Fees Reinstated

The SBA has restored fees for SBA 7(a) loans that were waived under the Biden administration citing “negative cash flow of about $397M in FY 24 – the first instance of negative cashflow in over a decade.” These include:

  • Lender’s Annual Service Fee of 0.55% of the guaranteed portion of the outstanding balance of the loan which may not be passed along to borrowers .
  • SBA Guaranty Fee (Upfront Fee) ranging from 2 - 3.5% of the guaranteed loan amount (depending on loan size) which may be passed on to borrowers. The upfront fee for Export SBA Express loans ranges from .25% to .8% depending on the length of the loan. SBA Express loans made to veteran-owned businesses will have no upfront fee. 

Why it matters: The stability and solvency of the SBA loan program is vital to long-term support and fees are a primary source of funding to help ensure that. Borrowers, however, may face a double whammy of higher interest rates and fees that may make these loans out of reach for some. 

Sources for this week’s news:

Small business lending

Community Development Financial Institutions

SBA Lender Fees Reinstated

Week of March 14, 2025

Tariffs: Small Business Owners Weigh In

Research firm Bredin surveyed 500 small business owners about tariffs and, not surprisingly, uncovered a lot of mixed feelings. 

 “44% of very small businesses (VSBs, with 1-19 employees), 54% of small businesses (SBs, with 20-99 employees) and 51% of midsized businesses (MBs, with 100-1,000 employees) agree somewhat or strongly that tariffs will have a negative effect on their business. At the same time, 45% of VSBs, 49% of SBs, and 68% of MBs support tariffs as a way to protect domestic industries,” writes Bredin in its monthly report. 

Support for tariffs is highest among Republicans (72%) versus Independents (45%) and Democrats (13%), men (48% versus 38% of women), and lowest in the West (28% versus 46-47% elsewhere). 

Main Street Makers Launches

Nav’s new podcast, Main Street Makers, has launched. In the inaugural interview,  Blake Milam shares how he took Guapaholics, a lifestyle brand, from a dorm room operation to a thriving small business and built community in the process. 

Saltbox Launches New Small Business Grant

Logistics and co-warehousing solution Saltbox is launching a small business grant program, The Luck of the Entrepreneur Grant. Tour one of the company’s 15 locations by the end of March 2025 to be entered to win a $1,500 grant. 

In addition, starting March 17, all new members will be automatically entered into a monthly drawing for $1,500 in funding, plus additional prizes like free growth consulting sessions, Saltbox merch, and gift cards. Renewing members will be eligible for a quarterly drawing. 

Economic Policy Uncertainty Rises

Uncertainty about the impact of US Economic Policy continues to rise, though it hasn’t yet reached levels during the 2020 pandemic. Consumer confidence and business sentiment are important because they can affect decisions about spending and investment. 

“If you have uncertainty about what policy is going to look like… that is going to cause you to not make big, important decisions,” says Gerald Cohen, chief economist at Kenan Institute of Private Enterprise at the University of North Carolina in an article published by NPR (source below). “If we’re already in an environment that doesn’t look good, that uncertainty could tip us into a recession.”

Sources for this week’s news

Mixed views on tariffs

Main Street Makers podcast

Saltbox Luck of the Entrepreneur Grant

Economic policy uncertainty

Week Ending March 7, 2025

Business Owners Remain Cautiously Optimistic

A new survey by PNC finds that small and mid-sized business owners remain optimistic about their business prospects, with 78% feeling positive about their own operations. 

While optimism about the national economy has slightly decreased, 56% still feel good about their local economies. Many expect increased sales and profits, with 65% anticipating higher sales in the next six months. 

However, concerns about inflation persist, with 43% expressing extreme worry. In response, 53% plan to raise prices, though fewer businesses are looking to expand their workforce. Overall, business owners are cautiously optimistic, focusing on managing costs and maintaining cash reserves amidst economic uncertainties.

Why it matters: Small business owners often lack the ability to weather large changes in the economic climate, and may have trouble managing cash flow if costs increase or demand decreases rapidly. 

BOI Reporting: Enforcement Halted

The on-again-off-again beneficial ownership reporting requirement under the Corporate Transparency Act is off again (mostly), according to an announcement from the US Treasury Department. It will “not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.”

It will be issuing a proposed rule to “narrow the scope of the rule to foreign reporting companies only.”

Why it matters: BOI reporting requirements carried very steep penalties for non-compliance creating worries that it could create a significant burden for very small businesses that did not comply, even accidentally. Failure to enforce the law relieves this burden while making it harder for FinCEN to enforce financial crimes. 

Federal Grants to Many Small Businesses Frozen

A variety of federal grants to small businesses have been frozen, in some cases with partial funds disbursed already. This includes The Dairy Business Innovation (DBI) Initiatives, Congressionally-allocated funds that support dairy businesses under the 2018 Farm Bill, and grants awarded under the Inflation Reduction Act. The full scope and effect of these frozen funds on small businesses is not yet clear.

Why it matters: In a number of cases, small business owners who were awarded grants have already spent funds and now are unable to pay suppliers or complete income—generating projects. There is often a ripple effect to federal funding cuts that affects other small businesses in the community. 

SBA Announces Office Closures

SBA Administrator Kelly Loeffler has announced that the SBA will relocate regional offices in “Atlanta, Boston, Chicago, Denver, New York City, and Seattle regional offices…to less costly, more accessible locations that better serve the small business community and comply with federal immigration law.” In an announcement, it reports it is moving offices out of “sanctuary cities” and will require proof of citizenship status for loan applicants. 

Why it matters: A Congressional Budget Office study of SBA Regional Offices closures in 2015 found that closing regional offices could create challenges delivering services to small business owners, but may reduce some redundancy. 

Sources for this week’s news:

Business Owners Optimistic

BOI Reporting

Federal Grants Frozen

SBA Reforms

Week Ending February 28, 2025

Taxes Tax Small Business Owners

The majority of small-business owners spend more than 20 hours per year dealing with federal taxes, even though most of them pay a tax professional to handle their taxes. That’s according to a new survey from the nonpartisan National Small Business Association. It also finds that “by far, the largest burden facing small businesses when it comes to federal taxes: administration and complexity, NOT the financial cost.” The NSBA notes that 83% of small businesses are pass-through entities which means business income flows through to the owner’s personal tax returns. 

Why it matters: As we reported last week, the IRS is cutting a significant number of staff in its small business division. That despite the fact that NSBA’s survey found that “more than half of small-business owners say that finding needed information directly from the IRS is difficult.” 

We’ll repeat last week’s advice: don’t put off doing your small business taxes until the last minute. 

Very Small Businesses Boost Economy

Don’t underestimate the impact of very small businesses. GoDaddy’s Venture Forward research initiative reports each entrepreneur with a digital microbusiness creates seven or more jobs at the county level, as well as increasing median household income growth. 

Why it matters: As of 2025, there are approximately 26 million microbusinesses in the US and they make up about 92% of all U.S. businesses. Their economic impact is often underappreciated, but without them, the US economy would suffer. 

SBA Loan Losses Rise

Recent risk assessments by the SBA indicate that the 7(a) program experienced negative cash flow in 2024 due to a combination of agency fee reductions and an increase in loan defaults. This is drawing scrutiny of the program by members of Congress. 

Why it matters: SBA loans are an important source of financing for small business owners. New SBA Administrator Kelly Loeffler has pledged to reduce losses at the SBA. Rising losses may result in changes to SBA loan programs. 

Consumer Confidence Drops

The Conference Board Consumer Confidence Index® declined by 7.0 points in February to 98.3 and the proportion of consumers anticipating a recession over the next 12 months increased to a nine-month high.

February’s fall in confidence was shared across all age groups but was deepest for consumers between 35 and 55 years old. The decline was also broad-based among income groups, with the only exceptions among households earning less than $15,000 a year and between $100,000–125,000.

Why it matters: A sharp decline in consumer confidence can lead to reduced spending, potentially impacting sales and revenue, which are crucial for the survival and growth of small businesses.

Sources for this week’s news:

Taxes are taxing

Very small businesses’ economic boost

SBA loan losses rise

Consumer confidence drops

Week Ending February 21, 2025

BOI reporting has (another) new deadline. Business owners may find tax season rockier this year. A small business grant can help new independent retailers stock their stores. And Nav’s CEO pushes for more transparent small business loan costs.

All in this week’s Nav small business news highlights. (Sources and additional resources below). 

BOI Reporting Is Back

Beneficial ownership reporting requirements (BOIR) are back in effect, with a new deadline of March 21, 2025 for most companies, though the Financial Crimes Enforcement Network (FinCEN) acknowledges the deadline could change again.

Why it matters: Though the requirement to file a BOIR was passed by Congress as bipartisan legislation, court challenges have meant the deadline has been pushed back multiple times. If it remains in effect, failure to report on time can mean steep penalties. 

Faire Small Business Grant Open

Independent retailers who opened their store in the US this past year, or will open this year, may want to apply for the Faire $5000 small business grant. Winners will get a $5000 credit toward inventory purchases on Faire.com.

Why it matters:  New retailers often face financing challenges, including purchasing inventory. This grant can help them get off to a strong start. 

IRS Small Business/Self Employed Division Cuts

More than 3500 employees in the IRS Small Business/Self-Employed division are expected to lose their jobs, CBS News Reports. This division serves more than 57 million small business owners and self-employed taxpayers with business interests having less than $10 million of assets.

Why it matters: Small business taxes can be complicated, especially for new entrepreneurs or those who file their own taxes. These layoffs may mean it will likely take longer to get answers from the IRS if you have questions, so don’t wait until the last minute to prepare or file your federal taxes this year. 

Maryland Considers Small Business Truth In Lending Bill

Maryland is the latest state to consider legislation to bring transparency to small business lending. Nav CEO and cofounder Levi King testified before the Maryland Economic Matters Committee in support of legislation that would require small business lenders to disclose an APR, similar to consumer loan disclosure requirements under the Truth In Lending Act. California and New York have passed legislation to close that gap, but entrepreneurs in most states are left to try to decipher confusing contracts.

Why it matters: Business owners often cannot easily compare costs on small business loans and may wind up in expensive loans that hurt rather than help their businesses. 

Sources for this week’s news

BOI Reporting

Faire Small Business Grant 

Get tips for applying for a small business grant here. 

IRS Small Business/Self Employed Division Cuts

Small Business Financing Disclosures

Week ending February 14, 2025

Freelance earning revealed. The end of the penny? A potential roadblock to removing medical debts from credit reports. 

Meanwhile, inflation and tariffs continue to dominate economic news headlines.

Here’s a quick roundup of news that can impact your small business.

Freelance Creative Rates Revealed

Social media content creation ($60.84/hour) and web design ($59.40/hour) are the highest-earning freelance skills, with creative professionals in the US earning higher average rates than those based in the UK or Australia, according to Adobe’s latest global study on freelance earnings. Adobe says that “Freelance graphic designers earn up to 43% more than full-time employees, showcasing self-employment as a strong financial alternative.”

Why it matters: Whether you are building a business as a freelancer, or want to hire one, knowing market rates helps you price or pay competitively. And if you’re thinking of going solo, freelancing can also be a great way to build a business while you keep your day job (as long as your employer allows it). 

Inflation Concerns Continue

CEOs of firms in the U.S. manufacturing and services sectors have adjusted their expectations for inflation over the next 12 months in the first quarter of 2025, according to the latest Survey of Firms’ Inflation Expectations (SoFIE) by the Federal Reserve of Cleveland. Business leaders expect the Consumer Price Index to rise by 3.2% over the next 12 months, down from a previous estimate of 3.8% from the prior quarter. 

And 18% of business owners surveyed by the National Federation of Businesses listed inflation as a top concern.  

Why it matters: Small business owners may need to adjust their prices in response to inflationary pressures. Inflation also contributes to overall economic uncertainty, which has increased among small business owners.

Credit Report Relief Reversal

Acting Consumer Financial Protection Bureau Director Russell Vought told employees not to “approve or issue any proposed or final rules or formal or informal guidance” and to “suspend the effective dates of all final rules that have been issued or published but that have not yet become effective.” The CFPB Rule to stop the reporting of medical debts on credit reports, which was set to go into effect in March 2025, may be in jeopardy as a result. 

Why it matters: If implemented, an estimated 15 million Americans were expected to see their credit reports improve by an average of 20 points. Now it’s unclear whether that change will take place.

Penny Production Halt

President Donald Trump has announced a directive to halt the production of new pennies, citing their high production cost, which exceeds their face value. The U.S. Mint reported that each penny cost approximately 3.69 cents to produce in 2024, resulting in a net loss of $85.3 million for the fiscal year. The move aims to reduce government waste but has sparked debates about its legality and potential economic impact. It’s worth noting, the US Mint has not stopped minting pennies as of this writing.

Still, Canada stopped minting pennies over a decade ago, and businesses have adapted. 

Why it matters: If pennies are no longer made, it may be a matter of time before cash transactions need to be rounded to the nearest nickel. In the short term, this could complicate pricing strategies for small businesses. While retailers who accept credit or debit card payments can still use pricing that ends in one cent ($1.99, for example), businesses that accept cash may not be able to maintain that pricing. .  

That raises a bigger question: Are nickels next? They are even more expensive than pennies to produce, at 13.8 cents per nickel. 

Tariff Threats

President Trump has signed a presidential memorandum this week to impose reciprocal tariffs on a wide variety of imports. The administration will evaluate tariff rates on a country-by-country basis, considering factors such as unfair taxes, subsidies, exchange rates, and regulatory burdens. This process will involve multiple federal agencies and could take up to six months. Developing nations like India and Brazil are expected to be most affected due to existing tariff disparities.

Why it matters: Small business owners who rely on imported goods may need to accelerate spending and stock up before new tariffs go into effect, or scramble to find new suppliers while facing uncertainty about costs. Many economists predict that tariffs could increase costs for U.S. consumers as importers raise prices to cover their additional cost.

Sources for this week’s news:

Freelancer Rates

Credit Reports

Penny Production

Inflation

Tariffs

Week Ending February 7, 2025

It’s been an incredibly busy news week, with many issues that may directly or indirectly impact small business owners. Here are important highlights: 

Tariffs

A head-spinning week of tariff news has ended with a temporary reprieve of most — but not all — of President Trump’s threats to impose sweeping tariffs. His Executive Order calling for 25% tariffs on goods imported from Mexico and Canada, and a 10% tariff on Chinese goods, were to go into effect Tuesday February 4, 2025. He quickly agreed to postpone tariffs on Mexico and Canada for at least a month. 

China tariffs largely continue, though on Wednesday of this week, President Trump issued an executive order which reinstates what’s known as the “de minimis” exemption for small packaged goods shipped from China. This means consumers won’t likely see an impact of most tariffs for smaller items bought from China, such as those sold through the online shopping site Temu. 

China has responded to US tariffs with retaliatory tariffs, including tariffs on liquid natural gas. 

Why it matters: Tariffs can increase costs for consumers and small business owners, and potentially lead to inflation. Tariffs are often used strategically, though, to protect or benefit specific industries that face foreign competition. 

Stay on top of tariffs: How Tariffs Can Impact Your Small Business: An Up-To-Date Guide

TikTok Ban

The TikTok ban is in a 75-day reprieve following its ban effective January 19, 2025. Those who deleted the popular social media app in expectation of the ban are unable to download the app from the App Store or Play Store. 

What will happen next is anyone’s guess. Popular YouTuber Jimmy Donaldson (MrBeast) is reportedly interested in buying TikTok’s US operations, YouTube is wooing TikTok creators to its platform, and President Trump signed an executive order to create a sovereign wealth fund to fund the purchase of TikTok.

Why it matters: TikTok is a major marketing platform for many creators, freelancers, and small business owners. Goldman Sachs predicts the “creator economy” to grow to nearly half a trillion dollars by 2027. 

Top States for Small Business Applications

Wyoming has more U.S. business applications per capita than any other state, according to research published this week by Start in Wyoming. The top states for business formation in 2024 were #1 Wyoming, #2 Delaware, #3 Florida, #4 Montana & #5 Colorado.

Overall, new business applications were down slightly in 2024, decreasing 4.76% from 2023 (5,461,471 vs, 5,201,647). 

Consumer Credit Scores Hold Steady

VantageScore, a leading national credit-scoring company, reported recently that the average VantageScore 4.0 credit score has held steady at 702. (The range for this score is 300-850, with 850 representing the highest possible score.) 

But it also reports that delinquencies (late payments) going into 2025, are “near their highest levels over the past five years across all Days-Past-Due (DPD) periods and across the lowest three VantageScore credit tiers.” 

Why it matters: Many small business owners, especially startups, rely on their personal credit to get small business financing. Strong credit scores can be helpful, especially while business owners build business credit. 

Consumer Financial Protection Bureau 

President Trump fired CFPB Director Rohit Chopra and designated Secretary of the Treasury Scott Bessent as Acting Director of the Consumer Financial Protection Bureau (CFPB), a government agency whose work is focused on financial products including bank accounts, credit cards and credit bureaus. Bessent reportedly ordered staff to halt work “unless expressly approved by the Acting Director or required by law.” 

Why it matters: Most of the CFPB’s work has focused on consumer financial protection. Because there is often an overlap between small business owner’s business and personal finances, there could be a spillover effect. 

For example, on January 7, 2025, the CFPB finalized a regulation that bans the inclusion of medical bills on credit reports used by lenders and prohibits lenders from using medical information in their lending decisions, potentially raising credit scores for millions of Americans. Previous CFPB actions could be in jeopardy.

At the same time, industry and banking groups like the Consumer Bankers Association believe that CFPB regulations make it more difficult and expensive for Americans to access credit and banking products. The are pushing for less oversight, which they believe could lead to more innovation in financial services.

US Small Business Administration

Businesswoman and former Georgia Senator Kelly Loeffler’s nomination for SBA Commissioner (the top position at the US Small Business Administration) was advanced to the Senate floor for a future vote. If confirmed, she will take the helm at the US Small Business Administration. 

Why it matters: The SBA provides small businesses in the US with counseling through partner agencies like Small Business Development Centers, Women Business Centers, and Veteran Business Owners Centers; access to capital through SBA loans including Disaster Loans and 7(a) loans; and government contracting expertise. 

Loeffler has said she will target “fraud and waste and abuse”.  It is not clear yet what changes Loeffler, if confirmed, may make to SBA programs or funding. 

Sources for this week’s news

TikTok ban

Tariffs

Business formation 

Consumer credit scores

CFPB

Small Business Administration

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  • Photo of Gerri Detweiler, blond woman in dark jacket smiling at camera

    Gerri Detweiler

    Education Consultant, Nav

    Gerri Detweiler, a financing and credit expert, has been featured in 4,500+ news stories and answered 10,000+ credit and lending questions online. In addition to Nav, her articles have appeared on Forbes, MarketWatch, and Startup Nation. She is the author or co-author of six books, including Finance Your Own Business, and she has also testified before Congress on consumer credit legislation.