With 74% of U.S. small‑ and mid‑sized business owners expecting revenue growth and nearly 60% planning expansion in the year ahead, confidence is rising but headwinds remain.
American business owners weathered waves of economic uncertainty in 2025 and are entering 2026 with renewed confidence. According to the Bank of America 2025 Business Owner Report, 74% of SMB owners expect revenue growth over the next year, and nearly 60% plan to expand operations – a clear signal that growth is back on the agenda.
But optimism alone won’t guarantee success. Leaning into growth requires discipline, flexibility, strategic foresight and an innovative mindset. While interest rate cuts are easing borrowing costs, yet funding still favors the most prepared operators. AI is reshaping the playing field, but costs of business remain high, talent is tight, and operational efficiency has emerged as a critical differentiator.
To scale effectively in 2026, SMBs must focus on areas that deliver the highest return on effort and capital.
Capital’s coming, but only the savvy will feast
After several turbulent years, the capital market is finally loosening. Rate cuts in 2025, and possibly again in 2026, will ease near-term borrowing costs. Investor appetite is returning, and both private funds and traditional lenders are preparing to put money back to work. Fintech lenders are also accelerating with faster, data-driven approvals, giving SMBs more optionality than they’ve had in a long time.
But this will not be a forgiving environment. A massive wave of commercial debt is maturing in 2026, creating fierce competition for refinancing and may distract lending focus away from SMB expansion. Regulatory scrutiny remains high and underwriting will stay selective. And even with rate relief, the cost of capital will stay relatively high, meaning only the strongest borrowers will secure attractive terms.
Winning in this market requires a shift from reactive borrowing to proactive readiness. Owners must present clean, verifiable financials, maintain disciplined cash-flow forecasting, and strengthen both personal and business credit. They need to show that investments in automation and AI are driving real efficiency gains and margin lift. Lenders will increasingly favor companies with predictable revenue streams, so converting one-off customers into recurring relationships becomes a strategic advantage. Above all, SMBs should not wait until they need capital. Building relationships early, and backing them with data-rich performance metrics, can signal discipline and preparedness, the traits lenders reward in a competitive year.
AI, automation and embedded finance: game changers in 2026
AI has become a true equalizer for SMBs. No longer a theoretical promise, it’s driving real business gains. The U.S. Chamber of Commerce reports that 87% of AI-enabled small businesses see higher efficiency, stronger customer engagement, and greater growth optimism, while 91% say AI has directly boosted revenue and reduced costs. Leading companies are pushing beyond basic use cases, applying AI across marketing, pricing, forecasting, customer retention — and increasingly, into the financial core of their operations.
AI is also supercharging automation. SMBs are automating tasks that once drained time and headcount – accounts payable and receivable, invoicing, reconciliation, payroll, and financial scheduling – making them smarter and more intuitive. The result: enterprise-grade operational efficiency without the enterprise-grade cost.
At the same time, AI and automation are unlocking the potential of embedded finance. From instant vendor payments and peer-to-peer transfers to buy-now-pay-later options and point-of-sale insurance, embedded banking is transforming how SMBs interface with and manage money. By integrating lending, payments, and banking directly into the platforms SMBs already use, companies can make financial management seamless and contextual. But the benefits go beyond ease of use. Embedded finance is enabling business expansion and creating new revenue. McKinsey finds that platforms with integrated financial services see double the customer engagement and 15–20% higher revenue per user.
Use partnerships to open new doors
In today’s digitally connected world, strategic partnerships are pivotal. The right alliances allow SMBs to share costs on big initiatives like co-branded marketing, technology integration or even bulk purchasing. They open doors to new markets, attract new customers, and inject fresh ideas and innovation into the business. Take banking partners as an example. Having the right strategic bank partner can help you connect with different resources and support your growth.
In a fast-moving environment, standing still is falling behind, and partnerships are a key accelerator for growth and business innovation.
Let’s partner up in 2026 for your growth!