MARION, Ill. (KFVS) – In southern Illinois, Ameren rates continue to shock folks as they open their dreaded electric bills this summer.

But it is not just people at home either. Small businesses are taking a huge financial hit with bills that are now thousands of dollars more than last year.

Abbey Riley is co-owner of Riley’s Smokehouse in Marion. She is still in shock over their latest Ameren bill, which is thousands of dollars more than usual.

“I just don’t get why. Why that big of a jump? The bill for June was $4,400,” she said.

Riley said this time last year, the average was around $2,500.

“It definitely isn’t expected. It makes you take a step back and reconsider some things.”

Tucker Kennedy is the communications director for Ameren Illinois. He said there are multiple factors driving up the cost of energy bills.

“The two principal reasons are that the price of electricity itself went up very significantly and overall usage due to temperatures has also increased. You put that together–that’s what is causing the increase for customers when they open those bills this summer,” he explained.

So what is the driving cost of this electricity in Illinois?

“There’s not enough surplus generation that is available in the Ameren Illinois territory to meet demand for energy on those hottest days when energy usage is highest. It’s a supply and demand issue,” Kennedy said.

He added that energy supply is low because Illinois is in a transition period from coal or natural gas to cleaner energy like solar and wind. He said until that transition is complete, supply can still be an issue.

“There’s been an exponential increase in the demand. Meanwhile, we’re shifting from the dispatchable always-on generation to these intermittent sources. That energy is not keeping pace.”

As for Riley, she is asking folks to support small businesses as best they can while they navigate through these higher costs.

“Small businesses are trying. Support small businesses. It’s not just us. It’s a lot of our small business friends who have also had higher bills, thousands of dollars more. For a small business, it’s not feasible to go on like that,” she said.

Ameren said energy bills should begin to stabilize this fall as temperatures begin to drop.

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Half of all small business owners feel at least some pressure to adapt in response to AI, with 20.3% reporting a slight urgency, 16.8% moderate urgency, and 13.4% significant urgency. Among business owners who believe AI will be beneficial, 44.4% report a high sense of urgency to innovate. In contrast, only 11.3% of those with a negative view of AI feel the same level of pressure, suggesting that mindset is a driver of momentum.

Adopting AI is often a matter of financial stability. Powerful AI tools can be a significant investment, and feeling secure about the future provides the confidence needed to make that commitment. This view creates a divide, where businesses with fewer resources may feel overshadowed by better-financed competitors who can afford to leverage AI, even if the technology itself could help them close that gap.

A majority of small business owners (61.3%) hold a favorable view of AI, but this optimism is closely tied to their economic outlook. Among owners who are optimistic about the economy, 70.6% have a positive opinion of AI. That number falls to just 43% for their pessimistic counterparts, showing a clear confidence gap between the two groups.

While many owners are frustrated by high interest rates and fees, security vulnerabilities remain the single most significant barrier (23.3%) to adopting new AI-driven financial tools.

Top uses for AI are marketing (39.4%) and data analysis (32.6%), while a clear majority of businesses (59.9%) have no plans for AI-driven layoffs.

The primary concerns for small businesses are inflation (71.4%) and rising operational costs (62.4%), which far outweigh concerns about technological risks, such as cybersecurity and AI risks (24.4%).

70.6% of business owners with an optimistic economic outlook hold a positive view of AI, compared to just 43% of their pessimistic counterparts. Those who believe in the potential of AI are the most likely to adapt to market trends .

To better understand how entrepreneurs are navigating this shift, Bluevine surveyed over 760 small business owners across the U.S. These insights can help you make more strategic decisions, ensuring your business survives and thrives in today’s economy.

Artificial intelligence (AI) represents a significant shift for small businesses, offering powerful tools to reduce costs and provide insights in a rapidly shifting economic landscape. This transformation has created a sense of urgency, with 61.3% of owners holding a positive outlook on the technology and many feeling the need to innovate.

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Those who view AI as an opportunity are actively preparing for change, while those who see it as a threat or a distraction are more likely to maintain the status quo. This divide could be a critical factor in determining which businesses gain a competitive edge, indicating that perspective may be as important as the technology itself.

3. Businesses are far more concerned about economic pressures than cybersecurity risks

The most significant concerns for small businesses are inflation, cited by 71.4% of respondents, and rising operational costs, chosen by 62.4%. More modern threats lag far behind, with only 24.4% of business owners listing cybersecurity and AI risks as their top three concerns. This data shows that immediate financial health and cash flow concerns take priority over technological vulnerabilities.

This intense focus on day-to-day survival is a critical reality for small businesses. While it’s essential to be aware of emerging digital risks, the primary battle for many business owners is still being fought on the balance sheet. The tangible impact of rising prices on supplies, rent, and payroll is a more urgent problem to solve than abstract future threats.

Bluevine

4. Widespread AI-driven layoffs are not on the horizon for small businesses

Despite widespread speculation about the impact of AI on the workforce, most small business owners are not planning for significant layoffs. A clear majority (59.9%) of businesses report having no plans to reduce their headcount as a result of AI. The most frequently cited department for potential cuts was marketing, at just 16% of all respondents, suggesting that AI is not currently seen as a large-scale replacement for employees.

Small businesses likely view AI more as an engine for growth and efficiency than a cost-cutting tool. The goal of adopting AI isn’t to replace valuable team members but to expand their capabilities—freeing them from repetitive tasks to focus on more strategic work, such as customer service and sales.

5. Businesses are primarily leveraging AI as a tool for growth in marketing and sales

When it comes to implementing AI, small businesses are primarily focused on tools that can help them grow. The top two applications for AI are marketing and sales activities, cited by 39.4% of owners, and data analysis to generate business insights, reported by 32.6%. Across the last two years, internal data* from Bluevine shows small business customers have seen a +436% increase in their use of ChatGPT and a +169% increase in other AI productivity tools.

Rather than just being a tool for simple automation, AI is increasingly trusted with complex, data-heavy problem-solving. A reliance on AI for data analysis showcases its growing intelligence and reliability, a notable change from early AI, which often struggled with accuracy. For a small business owner, this means AI can now be a trustworthy source for generating insights that were previously out of reach.

AI tip: Check out this helpful guide for using the most popular AI image generators in marketing.

6. Data security is the biggest barrier to adopting AI for financial management

While small businesses are adopting AI for growth, a different sentiment emerges when it comes to managing sensitive financial data: caution. The most significant barrier to adopting AI for financial operations is data security, with 23.3% of business owners citing security vulnerabilities as their top concern. Following closely behind is a concern for the accuracy and reliability of the technology, at 16.6%.

A single security incident can compromise customer information, drain accounts, and damage a company’s reputation. This high-stakes environment means that before they can embrace AI for finance, business owners need assurance that the technology is accurate, reliable, and secure enough to protect their company from new and evolving threats.

Bluevine

7. AI adoption is strong in unexpected sectors, like construction trades

While discussions about AI often focus on tech companies and office work, our survey data shows that AI adoption is gaining significant traction in more traditional, hands-on industries. A striking 66% of business owners in the construction and trades sector report that they are either currently using or actively planning to use AI tools. This high rate of adoption suggests that AI applications extend far beyond desk jobs.

Other non-tech industries showing heavy AI adoption include:

Health and wellness: 86.5%

Food and beverage: 80%

Retail: 70.1%

AI is a versatile tool with tangible benefits for a wide range of business operations. Bluevine’s internal data* shows that, while the highest AI adoption is found among information, educational, and professional services, it continues to grow across a variety of industries. For any small business owner, there’s an opportunity to find innovative ways to apply AI tools.

8. Small business owners believe AI is likely to revolutionize financial operations

When it comes to the future of financial management, small business owners believe AI will have an effect. The majority of small business owners (84.8%) anticipate that AI will impact or transform their financial operations within the next two to three years.

We may see a two-track evolution, where a large group of early adopters quickly integrates AI for small business budgeting and forecasting, potentially gaining an efficiency advantage. Meanwhile, fewer reserved businesses will maintain a more traditional approach, waiting for the technology to mature.

9. Small business owners have gripes about high interest rates and fees from banking providers

When it comes to banking providers, small business owners are highly sensitive to cost. The single most influential pain point for business owners is high interest rates on credit products, cited by 26.3% of respondents, and the number one reason they would actively switch to a new provider is excessive or non-transparent fees, at 24.1%.

Financial friction may be a key reason why small business owners are looking toward new technology for solutions. The appeal of AI-driven financial platforms and those that provide automated solutions often lies in their potential to be more transparent, efficient, and responsive than traditional banking models.

How to leverage emerging small business trends: Insights for financial growth and stability

The small business community is at a crossroads—optimistic about the potential of new technology like AI, yet still grounded by economic realities. Navigating this landscape requires a proactive strategy. Understanding these trends is the first step; the next is turning those insights into tangible efforts.

Here are a few factors to consider for your own business.

Bluevine

Assess your perspective on new technology: A positive outlook on AI correlates with a greater urgency to innovate. Consider whether your mindset is geared toward viewing new tools as an opportunity for growth or as a risk to be avoided.

Prioritize AI applications that drive growth: Your peers see the most value from AI in marketing, sales, and data analysis. When exploring AI, focus on tools that can provide strategic insights in these areas or help you reach new customers.

Scrutinize your banking solutions: There is a deep frustration with high interest rates and non-transparent fees. Regularly evaluate your banking provider to ensure its fee structure is clear and its technology is not creating friction. For example, you may be able to find a business checking plan with no monthly fees, or an online banking platform that uses technology to speed up the application review process.

Use technology to combat economic pressures: Your biggest challenges are likely still economic, such as inflation and high operational costs. Look for modern financial tools that can help you with flow analysis, expense tracking, and the current money in your business checking account.

Methodology

The survey of 763 U.S. small business owners was conducted via Centiment Audience for Bluevine between June 2 and June 4, 2025. Data is unweighted, and the margin of error is approximately +/-3% for the overall sample with a 95% confidence level.

This story was produced by Bluevine and reviewed and distributed by Stacker.

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Front Room Hair, which opened its door for the first time 15 years ago, has since evolved into a business that offers a wide range of beauty services. Owner Justine remains optimistic for the year ahead despite current challenges of running a small business today.

“We’re hoping that we can keep growing our business and diversifying but also bringing creative spaces together. We already have beauty, nails, hair and make-up services, and we’re looking to keep evolving and branching into events and education,” Justine added.

Broader implications

Small businesses are the engine of the Australian economy making up 97% of all Australian businesses and contributing to roughly one-third of the nation’s Gross Domestic Product (GDP)^. According to CommBank Executive General Manager Small Business Banking, Rebecca Warren, the success of the small business sector is crucial to growing Australia’s future economy.

Despite continued cost challenges, Ms Warren said small Aussie businesses remain incredibly resilient and cautiously optimistic.

“The recent reduction in interest rates has been welcomed with both arms by our small business customers, but running a business today continues to be tough as consumer spending recovery is taking longer than anticipated, and the macro-economic landscape continues to bring uncertainty.

“While there has been a slight decrease in sentiment from November 2024, our research shows the majority (63 per cent) of SME owners and senior managers feel optimistic about business performance over the next 12 months – down from 71 per cent last year.

“Additionally, plans to grow business remain strong with nearly two thirds of SMEs aiming for growth, down from 72 per cent in November 2024.”

Navigating the challenges

CommBank’s research shows Australian small businesses are very proactive when it comes to finding ways to reduce costs.

More than half of SME owners and senior managers (58 per cent) say they shop around for discounts on utilities at least once a year. Almost two in five (38 per cent) do so once a year, while one in five businesses (20 per cent) search for better deals every 6 months or more often.

According to Warren, shopping around for better offers and shifting to alternative suppliers is one of the best ways to reduce costs: “It can not only help cancel out the increase in costs a business has experienced that year, but also result in significant savings, especially given our research shows most SMEs are willing to look for a better deal.”

Other ways SMEs can reduce costs, according to Warren, include investing in technology and automation to reduce manual tasks, outsourcing non-core activities, reviewing subscriptions, increasing energy efficiency, and reducing unused office space.

How CommBank provides support

The research comes as CommBank reaffirms its commitment to helping small businesses navigate some of the challenges they are facing, by increasing the offers of CommBank Yello for Business, a recognition program now available to more than 340,000 small businesses across Australia via the CommBank app.

Recognising that accounting, phone, internet, and legal support costs are often essential to running your business, CommBank Yello for Business provides eligible small business customers with:

Promotional discounts on accounting software for the first six months;

Up to 3 free months with a LegalVision membership;

Discounts of 30 per cent (Everyday Business) and 50 per cent (Business Growth) on mobile, phone and internet bills with More for the first year*.

CommBank Yello for Business also offers discounts on items like workwear for tradies, hospitality or health workers, equipment hire, technology, office furniture and more.

“Taking advantage of some of those extra savings could make a real difference to a small business, freeing up some of that cash to spend on marketing, extra inventory or purely to increase cashflow,” Warren said.

The offers available through CommBank Yello for Business are part of the bank’s broader commitment to backing Australian small business, whether they are just starting out, or looking to grow.

CommBank’s partnership with University of NSW offers a free Cash Flow Management course for any Australian small business, while mental fitness programs delivered in partnership with Smiling Mind are tailored specifically for this audience.

Earlier this year, CommBank gave 50 businesses around the country their own billboard featuring three CommBank Matildas players to help promote their business. The bank also continues to support the Cyber Wardens program, which was launched in partnership with Telstra and Council of Small Business Organisations Australia (COSBOA), to help Australian small business owners upskill in cyber safety and scams awareness.

^ Source: Australian Small Business and Family Enterprise Ombudsman (Chart 1);

* Customer must sign up with and continue to use an eligible CommBank online bill payment method. Full offer terms and conditions apply, go to www.more.com.au/policies

For more information on CommBank Yello for Business: https://www.commbank.com.au/business/latest/commbank-yello-for-business.html

For more information on CommBank Business Cash Flow Management Course, Smiling Mind and the Cyber Wardens program: https://www.commbank.com.au/business/small-business.html

About the research

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 511 adults. Fieldwork was undertaken between 23rd – 27th May 2025. The survey was carried out online. Results have been weighted by location and business size to be representative of all Australian small (1–19 employees) and medium (20–199 employees) businesses, in line with national business population proportions.

The 2025 market rotation has signaled a decisive shift from high-growth speculation to income-oriented, defensive investing. With interest rates stabilizing, trade policy uncertainty persisting, and economic recovery gaining momentum, investors are increasingly favoring sectors that offer resilience and predictable cash flows. Business Development Companies (BDCs), long positioned as income generators and credit specialists, are emerging as prime beneficiaries of this trend. This article explores the top-performing BDCs poised to capitalize on the current rotation, emphasizing their alignment with defensive strategies, diversified credit portfolios, and the structural advantages of the post-tariff environment.

The Post-Tariff Environment: A Catalyst for BDC Resilience

The 2025 global tariff reset, marked by a 10% baseline rate and targeted surcharges on key trade partners, has reshaped the economic landscape. While initial volatility disrupted supply chains and dampened investor sentiment, the sector’s long-term orientation and focus on senior, first-lien debt have proven advantageous. BDCs with diversified portfolios and floating-rate exposure are particularly well-positioned to navigate this environment, as rising interest rates and reduced macroeconomic uncertainty support their income-generation models.

NewtekOne Inc. (NEWT), for instance, has leveraged its SBA loan expertise to drive portfolio expansion. In Q1 2025, its net interest income surged 56.4% year-over-year to $13.9 million, while total assets ballooned to $2.1 billion. Its unique access to small business lending—a sector less sensitive to trade policy shifts—positions it as a defensive play in a fragmented market.

Floating Rates and Diversified Portfolios: The PFLT and BBDC Advantage

The normalization of interest rates has amplified the appeal of BDCs with floating-rate loan portfolios. PennantPark Floating Rate Capital (PFLT) and Barings BDC Inc. (BBDC) exemplify this trend. PFLT’s weighted average yield on debt investments reached 10.5% in Q1 2025, while BBDC’s 89% floating-rate exposure offers a buffer against credit risk. These firms benefit directly from the Fed’s rate-holding stance, as their spreads widen with rising benchmarks.

For investors, the key takeaway is clear: BDCs with a high proportion of floating-rate loans and diversified industry exposure—such as BBDC’s 329-issuer portfolio—provide a hedge against sector-specific downturns and rate volatility.

Defensive Sectors and Venture Capital: HRZN’s Tech-Healthcare Focus

The market’s pivot toward defensive sectors has also elevated Horizon Technology Finance (HRZN). Specializing in venture capital for technology and healthcare firms, HRZN’s portfolio aligns with innovation-driven growth. Despite a 6.2% drop in investment income year-over-year, its dollar-weighted yield of 15.0% in Q1 2025 underscores its ability to deliver strong returns in a higher-rate environment.

As AI adoption and healthcare innovation accelerate, HRZN’s focus on high-growth, capital-efficient ventures makes it an attractive option for investors seeking income with upside potential.

The Blue Owl Capital (OBDC) Diversification Play

Blue Owl Capital (OBDC) offers a compelling case study in broad-based diversification. With $17.7 billion in portfolio fair value and exposure to 236 companies across 30 industries, OBDC’s strategy mitigates sector-specific risks while capturing growth across the economic spectrum. Its 16.7% year-over-year increase in gross investment income highlights the scalability of a diversified credit model.

In a post-tariff world where geopolitical tensions remain elevated, OBDC’s cross-industry approach ensures that no single macroeconomic shock can derail its performance.

Strategic Investment Advice: Balancing Income and Risk

For income-focused investors, the 2025 BDC landscape presents a unique opportunity. The following strategies are recommended:

1. Prioritize Floating-Rate Exposure: BDCs like PFLT and BBDC offer direct benefits from rate normalization, with spreads expected to stabilize in a low-volatility environment.

2. Diversify Across Defensive and Growth Sectors: A mix of HRZN’s tech-healthcare focus and OBDC’s broad portfolio ensures resilience against sector-specific downturns.

3. Leverage SBA-Backed Opportunities: NEWT’s SBA loan platform provides access to underserved small businesses, a demographic less impacted by trade policy shifts.

The 2025 market rotation toward value and income is not a fleeting trend but a structural shift driven by macroeconomic realities. BDCs, with their focus on credit discipline and income generation, are uniquely equipped to thrive in this environment. By selecting BDCs with diversified portfolios, floating-rate exposure, and defensive sector alignment, investors can secure both capital preservation and attractive yield in an era of uncertainty.

As the year progresses, the BDC sector’s ability to adapt to evolving trade and interest rate dynamics will be critical. For those willing to embrace the shift from growth to value, the rewards are substantial—and the time to act is now.

Key takeaways Tariffs will make it harder for many small businesses to afford imports, especially Chinese imports.

To help mitigate rising costs, keep your business finances separate from your personal finances, rethink your income streams and look for local community assistance.

When Mallory Hank-Johnson recently ordered ribbon as a supply for her alterations business, she was shocked to see the $10 ribbon she typically orders had gone up to anywhere from $60 to $80. It wasn’t the only item that had exploded in price, either. Depending on where she orders, Hank-Johnson has seen additional fees tacked on for other supplies she uses, such as thread, needles, zippers and more. Those extra costs are eating into her bottom line.

Hank-Johnson is the co-owner of Needle and Stitch Studio, an alterations and T-shirt printing shop in Las Vegas, just a short drive from the Nellis U.S. Air Force Base. Most of Hank-Johnson’s clients are members of the military — that ribbon she needs to buy is part of the Air Force uniform. She lies awake at night, terrified that she may need to cut her four employees’ hours or raise prices 10 percent to 20 percent. In addition, for a client base on a fixed income, raising prices as high as 20 percent can also be way out of their budget.

“It feels scary, because there’s been some customers who have already complained that our prices are too high,” Hank-Johnson says.

As tariffs begin to impact American households, many small businesses who order products and supplies directly from countries like Canada, Mexico and China are seeing a significant difference in their bottom line. These higher costs will affect many small businesses and can even be financially devastating, especially for businesses that already operate on slim margins.

With tariffs making many goods unsustainably expensive for small business owners, this leaves them with unappealing options — sacrifice profits to pay the tariffs, raise prices, switch to more expensive manufacturers elsewhere or close entirely. While raising prices may seem like the simplest option, amid a rising cost of living, there may be few customers even willing to pay those higher prices.

Experts weigh in: Small business owners will need to think in new ways to tackle uncertainty

So long as tariffs impact imports, there aren’t a lot of options for business owners who rely on affordable overseas goods, says Bankrate Financial Analyst Stephen Kates, CFP. You could always change to a different supplier, but most major importers to the U.S. have experienced tariff hikes, and a change may still drive up costs. Not all businesses can afford that.

“Small businesses are going to be hit the hardest by supply chain disruptions and supplier cost increases,” Kates says. “Fortune 100 companies like Amazon, Walmart, and Costco have strong negotiating power to pressure suppliers to work with them on price and order size. Small businesses do not.”

The uncertainty around on-again, off-again tariff announcements provides another roadblock for business owners who want to know if they can continue to work with their suppliers and how much they should charge for their products.

“For the average small business owner, this is going to create a lot of uncertainty, and that uncertainty is going to be challenging,” says Christopher Eaglin, an assistant professor at the Fuqua School of Business at Duke University. “It’s going to make it so you have to be much more dynamic in the way you think about your business.”

For some business owners, tariffs today are reminiscent of COVID-19, when supply shortages and tariffs from Trump’s first term drove up prices, according to experts. But during COVID-19, businesses had access to Paycheck Protection Program (PPP) loans. As of June 2025, the Trump administration hasn’t offered that kind of lifeline to small businesses.

“I think the biggest misconception that I’ve heard is that this will blow over and things will go back to normal,” Eaglin says. “I think one ought to prepare oneself as if this uncertainty will persist, and try to plan as if that is the case.”

‘Navigating Now’: How to manage your small business expenses amid tariffs and uncertainty

Despite the challenges, there are still ways you can navigate this uncertain period and take back some control of your business. Bankrate spoke to several personal finance experts for creative solutions to protect not just your business, but also your personal finances.

1. Introduce other services

To make more money, Hank-Johnson introduced classes and community events to her store for the first time. When tariffs affect your primary source of revenue, introducing new, tariff-resistant services to your business could be a great way to diversify your income streams. Introducing classes and events hasn’t fully paid for higher-priced goods due to tariffs for Hank-Johnson, but she says it helps ease the pain a bit.

Here are some ideas of new revenue streams, based on your business type:

Business New income stream Restaurants, bars and coffee shops Catering, cooking classes, hosting community events Retail brick-and-mortar Offering subscriptions, creating an online store, subleasing space, hosting classes and community events E-commerce Partnering with other brands, offering digital products, offering subscriptions or memberships, attending trade shows or hosting your own events Small farms Starting a Community Supported Agriculture (CSA) program, hosting volunteers and events, renting out land Auto and repair shops Repairing and flipping cars, offering fleet management services

2. Look for efficiencies

As you consider adding additional income streams to your business to create more sources of revenue, you can also save money by streamlining your business. If you run a business with several lines of income, and some are taking up more resources while not being as profitable, it may be time to consider cutting them, according to Eaglin. For example, if you run a retail store with an e-commerce site, but you make relatively few e-commerce sales, you can de-prioritize or discontinue the website to focus on your brick-and-mortar. Or, if you sell several kinds of products, you can streamline your business by discontinuing your more expensive products or the products that don’t sell as well.

Stuck on how to make your business more efficient? Ask AI AI platforms can be a great tool to expand, streamline or reinvigorate your business. You can use AI to help with your marketing efforts, customer service sales and more — Bankrate explains how. Read more

Bill Fink, the chief lending officer at Provident Bank in New Jersey and a guest lecturer at the University of Pennsylvania Wharton School, says that companies should find ways to cut overall costs, even if it means spending money on investing in something new, like a new piece of equipment.

“If you can make your business far more efficient and reduce your ongoing production costs and improve your ongoing cash flow profitability, that may be the right thing to do right now,” Fink says.

These changes can be temporary or permanent, depending on the needs of your business, but focusing your efforts now could lead to savings down the line.

3. Take this opportunity to upskill

As businesses look for new ways to innovate and refine their business plans, Eaglin also says now is a great time to upskill. If there’s an online course or business module that you’ve been meaning to take, take it, Eaglin says.

Coursera , the Small Business Administration (SBA) , Google , EdX and certain universities like Harvard University all offer free online courses for small business owners looking to get a leg up. Through them, you can learn skills such as the following:

Basic corporate finance

Digital marketing strategy

Data storytelling

Basic human resource strategies

Search engine optimization

Leadership and management skills

4. Take advantage of federal resources

For more personalized assistance, the SBA has long been a great source for new and existing businesses alike, but it’s undergoing cuts under the Trump administration and many programs are in limbo, according to experts. However, it’s still in operation. If you’re interested in SBA programs for existing businesses, reach out to your local SBA office and see what programs are available to you for assistance.

The SBA isn’t your only resource, however. Check out other national grants and programs that may be offered near you — for example, some states like Minnesota and Illinois offer grants to local businesses. Other programs are available specifically for female, veteran, low-income or first-time business owners.

Small Business Development Centers (SBDCs) can also be a great resource for small businesses who are looking to get a leg up. SBDCs are federal programs affiliated with the SBA that offer free or low-cost training to small businesses. They’re usually held through your local university or community college, and they offer training workshops — such as introductions to entrepreneurship, introductions to financial literacy and small business borrowing, as well as training on marketing or compliance.

SBDCs also offer personalized training, which you typically need to apply for. You can find the closest SBDC to you by using the SBA website.

5. Lean into local assistance

Monika Hudson, a professor at the University of San Francisco and Director of the USF Gellert Family Business Center, says that universities and colleges are generally a great resource for local businesses who need assistance. Many universities partner students (particularly business, law or marketing students) with local businesses, so students can gain real-world experience and companies can receive free assistance with their business plan, marketing strategy or other needs. Check to see if your local university has a business incubator or accelerator program that can match you with volunteers, but if not, your local business school might still have resources you can use.

Additionally, Hudson recommends that small businesses consider seeking mentorship with larger, established family-owned businesses in their community.

“These individuals have knowledge and skills, and maybe they haven’t decided to volunteer at scale, but they may be a great source of information on how to pivot,” she says.

One mentorship option is SCORE, a national nonprofit in partnership with the SBA, which partners small businesses with volunteer business mentors. You can also find workshops and networking opportunities near you through online groups like Meetup to connect with other business owners who understand the difficulty of managing a small business right now.

Star Icon Keep in mind: If you aren’t seeking mentorship from other businesses, but are still interested in working with your neighbors, you can also consider forming partnerships to purchase products in bulk or renegotiate prices with suppliers.

6. Protect your personal income

If your income is derived entirely from your small business profit, the effects of tariffs on your business can impact your personal income. To keep higher business expenses from affecting your personal finances, it’s important to keep the two separate. That way, not only is it easier to keep your books straight, but you can avoid legal, tax and financial headaches down the road.

If you don’t already and if your business is mature enough for you to do so, pay yourself a salary from your business profits, just like any other employee, instead of pulling funds as needed. Set a schedule — such as every two weeks or every month — and pay yourself a regular salary to keep a clear boundary between your personal and business finances. Keep separate bank accounts and credit cards for your business for even further separation.

If you have some expenses that could be considered both a business and personal expense — like utilities and internet for your home office — estimate what percentage of your expense is used for your business. For example, if you have a 200-square-foot office in a 2,000-square-foot house, deduct 10 percent of your personal utilities and expenses as a business expense .

The bottom line

Running a business is hard. Running a business when your company needs to pay higher tariffs on imports is harder. But by introducing other services, finding ways to make your business more efficient, upskilling, looking for local assistance and separating your finances, you can help mitigate some of the worst effects of tariffs.

If you need more guidance on creating a budget for your business, check out Bankrate’s guide, which takes you through each step in creating a business budget, from reviewing past financial performance to setting profit goals.

Expert contributors to this article Caret Down Icon Christopher Eaglin, assistant professor, Duke University Fuqua School of Business Christopher Eaglin is an assistant professor in the Strategy Area at the Fuqua School of Business at Duke University. He works at the intersection of strategy and economic development, focusing on the following areas: understanding how entrepreneurs set strategies in uncertain environments, how entrepreneurship environments are governed, and more broadly how firm strategy-setting impacts the building of inclusive and sustainable economies. Eaglin earned his Ph.D. in Business Strategy at Harvard Business School. Previously, he earned his bachelor’s degree in Economics and Mathematics from Morehouse College, graduating as valedictorian. He also earned an M.Phil. in Development Economics and International Development from the University of Oxford as a Marshall Scholar. Bill Fink, chief lending officer, Provident Bank; guest lecturer, University of Pennsylvania Wharton School Bill Fink is Executive Vice President and Chief Lending Officer at Provident Bank, overseeing a $16 billion commercial portfolio and a 250-person team across NJ, NY, and PA. Previously, he spent 20+ years at TD Bank, where he led U.S. Middle Market Banking, delivered record loan production, and steered major M&A reviews. A CPA and CGMA, Bill holds an MBA from Saint Joseph’s University and advanced credentials from Wharton and Stanford. He serves on Wharton Executive Education’s board and is a longtime guest lecturer in its undergraduate Private Equity program. Monika Hudson, professor, University of San Francisco; director, USF Gellert Family Business Center Dr. Monika Hudson is a full professor at the University of San Francisco and teaches entrepreneurship, family business, organizational behavior and public administration on both the graduate and undergraduate levels. She directs USF’s Gellert Family Business Center, which promotes and supports family firms in the Bay Area. She is also faculty lead for USF’s undergraduate international business program. Dr. Hudson’s research interests include entrepreneurship, identity and behavior and the strategic implementation of the same within the private, public and nonprofit sectors. Dr. Hudson received her undergraduate degrees from Northwestern University, Illinois; her master of business administration from the University of San Francisco; her doctor of business administration from Case Western Reserve University, Ohio; and her doctor of education from University of San Francisco. Stephen Kates, CFP, Bankrate Financial Analyst Stephen Kates is a CFP® professional and personal finance expert specializing in financial planning and education. He is a Financial Analyst for Bankrate, providing strategic insights on economic trends, wealth management, retirement planning, and personal finance. With over 15 years of experience in the financial industry, Stephen focuses on creating targeted consumer finance solutions for individuals, families, and business owners. He leverages his passion for financial literacy by simplifying complex topics and making financial planning accessible to everyone.