Small business owners have reduced their expectations for growth, according to a new survey conducted by the 12 Federal Reserve Banks. The findings are part of the 2026 Report on Employer Firms: Findings from the 2025 Small Business Credit Survey.
The survey indicates that projections for revenue and employment growth among small businesses have dropped to their lowest levels since 2020, though they remain above that year’s low point. Actual performance indicators—including revenue, employment, and profitability—have remained steady but continue to lag behind levels seen before the pandemic. For the second consecutive year, slightly more firms reported declines in revenue than increases.
The national survey was conducted between September 3 and November 14, 2025, gathering responses from 6,525 firms with between one and 499 full- or part-time employees.
The Federal Reserve Bank of Cleveland is one of twelve regional Reserve Banks in the United States. It participates in shaping national monetary policy and supervises banking organizations while providing payment services to financial institutions and the US Treasury. The Cleveland Fed also supports communities within its district through research, outreach, and educational initiatives.
According to its official website, the Federal Reserve Bank of Cleveland promotes economic resilience and mobility for low- and moderate-income communities in its region. The bank represents the Fourth Federal Reserve District, which includes Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia (source). Its mission also includes promoting stability and efficiency in monetary and financial systems (source).
Beth M. Hammack currently serves as president and chief executive officer of the Federal Reserve Bank of Cleveland (source). The bank’s president contributes to national monetary policy decisions through participation on the Federal Open Market Committee (source).
For further information or data from this report, contact Chuck Soder at chuck.soder@clev.frb.org or call 216.672.2798.
