Are You Eligible?

Two questions tell you if you qualify.

Did you pay the tariff yourself? Refunds go to whoever paid Customs directly. If your supplier paid the tariff and sold the goods to you, your supplier qualifies, not you. The next move is a conversation with your supplier about whether their refund affects your pricing.

Was the tariff an IEEPA tariff? Eligible tariffs are commonly called “fentanyl,” “trafficking,” “reciprocal,” and “baseline” tariffs, plus some on goods from Brazil and India. Several other categories, such as those listed below, are not in scope:

• Section 232. Duties of 10% to 50% on steel, aluminum, copper, and related products, applied for national security reasons.
• Section 301. Duties on Chinese goods imposed in 2018 over technology and intellectual property practices.
• Section 201. Temporary safeguard measures under the Trade Act of 1974 used when an import surge causes serious injury to a U.S. industry.
• Anti-dumping duties. Duties on imports priced below fair market value.

If you are not sure which type you paid, your customs broker can tell you.

The Four Steps to Take Now

Talk to your customs broker first. They will be your front line for the new system. Then:

1. Update your contact information with Customs. CBP Form 5106 is the form. Make sure your email is current.
2. Set up your ACE Portal account. Register here. New accounts take 3 to 4 weeks. Start this first.
3. Sign up for direct deposit. Refunds come electronically. Enroll in ACH here.
4. Have your customs broker check your records for excluded shipments. A few categories are not in the initial refund pool, including drawback claims, pending protests, anti-dumping cases the Department of Commerce is still working through, and shipments not in the ACE Portal.

A tax note: how a refund is treated depends on how you originally recorded the duty expense. Consult your tax professional before the refund posts to your account.

The official source is the Customs IEEPA Duty Refunds page.

The post The Tariff Refund Window Is Open. Here Is What Small Business Importers Need to Do. appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

Profitability growth held positive through the first quarter, but small business payroll growth has been negative for three consecutive months, and overall spending has been relatively unchanged. Owners are tightening, even where the topline does not require it.

Where the Pressure Is Coming From

The cost picture explains a lot of it. According to the report, wholesaler inventory costs are running more than 60% above year-ago levels, and gasoline spending jumped 23% year over year in March. Two forces are doing most of the work.

Tariffs have continued to ripple through small business supply chains, and oil prices have increased significantly in the first quarter after Middle East disruptions in late February.

For small businesses that depend on either input, the operating environment is meaningfully more expensive than it was a year ago.

The Pullback Is Not Uniform

The slowdown is not happening everywhere.

Construction and manufacturing employment is still tracking around 40% above its 2023 average, which suggests project-driven trades are still hiring.

The slowdown shows up most in services and retail, where margin sensitivity is higher, and hiring can be tightened quickly. The same business cycle is producing different operating decisions depending on the sector.

Profitable, But Cautious

For most small business owners, the practical question is whether the topline justifies the cautious posture they are holding. Profitability that holds in a high-cost environment is real, but it is also the kind of margin profile that creates a planning paradox. The cash is there to invest; however, the conditions look uncertain enough to make holding feel safer.

Making the Call With Your Own Numbers

The owners managing this best look at their actual cash position before defaulting to the broader sentiment. They run their planning cycles with real numbers from their own business rather than the headlines.

Pulling back is a reasonable response to the current data, but it is still a decision the owner makes, not one the aggregate data makes for them.

Your cash position may support a different move while others wait. Schedule a complimentary discovery session, and let’s walk through it together.

The post Why Many Small Businesses Are Pulling Back Despite Profitability appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

Fifteen consecutive quarters of declining applicant credit quality, running from the second quarter of 2022 through the fourth quarter of 2025, according to the Federal Reserve Bank of Kansas City Small Business Lending Survey.

The trend has moderated since its low point in 2023, but it has not reversed. The gap between where most small business applicants stand and where lenders want them to be remains real and, for many owners, wider than they realize.

What is driving the decline

As we explored in a recent post, 72% of lenders identify weak borrower financials as the leading reason for small business loan denial. The fifteen-quarter decline in applicant credit quality reflects exactly that gap playing out across the broader market.

Lenders assess a combination of signals, including cash flow consistency, outstanding debt levels, the owner’s personal debt-to-income ratio, personal wealth, and liquidity. When any of these signals weakens, the overall picture of creditworthiness weakens with it.

The current economic environment is adding pressure. Rising input costs driven by tariffs have compressed margins for many small businesses, reducing the net income and cash flow figures that lenders rely on most. When revenue stays flat, but costs rise, the financial story lenders read becomes harder to defend.

What this means for your business

Credit standards have also tightened every year for the past four years. Lenders are not evaluating applicants against a static bar. They are evaluating them against an increasingly cautious set of expectations, shaped by nearly four years of observed deterioration in applicant quality across the market.

The businesses that succeed in this environment are not necessarily the strongest on paper. They are the ones who understand what lenders are looking for and have taken deliberate steps to get there.

Our Becoming Bankable® program is designed to help business owners build exactly that kind of financial profile. Learn more here.

Our team works with business owners to strengthen strategy, improve financial readiness, and stay lender-ready through shifting conditions. Schedule a free discovery session, and let’s explore potential actions to improve your position.

The post Small Business Credit Quality Is Declining. Here Is What That Means for Your Business. appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

By the time a lender delivers their answer, your financials have already told them what they need to know. Understanding what they are looking for is the first step toward changing the outcome.

According to the Federal Reserve Bank of Kansas City Small Business Lending Survey for the fourth quarter of 2025, 72% of lenders identify weak borrower financials as the most common reason for denying a small business loan application. That single finding points to a broader truth: lenders are fundamentally trying to answer one question. Can this borrower repay?

What borrower financials actually means

Borrower financials are not a single number. It is a picture built from several signals working together.

Cash flow patterns show whether your business generates consistent income to cover its obligations.

Debt levels indicate how much you are already carrying relative to your business’s production or output. The ratio of what you owe to what you earn, or your debt-to-income ratio, is particularly influential.

When lenders evaluate credit quality, more than half point to the owner’s personal debt-to-income ratio as a very important factor in their assessment.

Beyond financials, lenders frequently cite credit history and collateral as additional reasons for denial. Together, these factors form the lens through which every application is reviewed, regardless of bank size or loan type.

What this means for your business

Credit standards have tightened every year for the past four years, according to the same survey. The profile that qualified a business for credit previously may not meet the bar today. Lenders are looking at a more complete picture of the owner, not just the business entity.

The businesses that navigate this environment successfully are the ones that treat lender-readiness as an ongoing discipline rather than a pre-application checklist.

Our Becoming Bankable ® program is designed to help business owners build and maintain exactly that kind of financial profile. Learn more here.

Our team works with business owners to strengthen strategy, improve financial readiness, and stay lender-ready through shifting conditions. Schedule a free discovery session, and let’s discuss how we can help you.

The post Small Business Loan Denial: What Lenders See Before You Get the Answer appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

In reality, the result often lands somewhere in between.

Recently published Federal Reserve data shows that just about half of small businesses receive the full amount of financing they request. In the most recent survey, 52% of applicants received the full amount they asked for. The rest received less than requested or no funding at all.

What makes this especially interesting is how consistent the pattern has been. In the previous two survey years, the share receiving full funding was 52% and 51%.

In other words, this is not a one-year anomaly. Roughly half of applicants receive the full amount they request, and roughly half do not.

Approval Does Not Always Mean Full Funding

Many loan outcomes fall somewhere between approval and denial.

In the latest survey, about 29 percent of applicants received only part of the financing they requested, while about 19 percent received none.

Partial funding can still help a business move forward. But it may not fully support expansion plans, equipment purchases, or working capital needs.

How Lenders Size a Loan

Lenders do more than decide whether to approve a loan. They also determine how much the business can reasonably support.

That decision usually comes down to a few practical factors:

• Cash flow and the ability to service debt
• Existing debt obligations
• Available collateral
• Overall risk profile of the business

Even when a lender is comfortable approving the loan, those factors may lead them to approve a smaller amount than requested.

Preparing for the Funding Conversation

If you are planning to apply for financing, ask yourself a simple question: Can your business support the amount of capital you are requesting?

Our Becoming Bankable® program was designed to help business owners work through these questions before approaching a lender. We help owners understand the 5 C’s of Credit, review financial positioning, and see their business the way a lender does.

Thinking about applying for financing? Schedule a complimentary discovery session, and let’s discuss your lender readiness together.

Preparation cannot guarantee full funding. But it can significantly improve the odds that a financing request aligns with lender expectations.

The post Why Many Small Businesses Don’t Receive the Full Funding They Request appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

So, what actually happens when a loan request moves from conversation to credit review?

Recently published Federal Reserve data gives us a clearer picture. In the 2026 Report on Employer Firms, among businesses that did not receive the full amount of financing they requested, 46 percent said lender requirements were too strict. Thirty-seven percent reported having too much existing debt. Thirty percent cited a low credit score. Twenty-nine percent pointed to insufficient collateral. 2026 Report on Employer Firms

These are not small technicalities. They are the kinds of issues that can quietly derail an application.

Credit challenges rarely stand alone. High utilization, layered debt, uneven payment history, or limited collateral tend to build on each other. An owner may feel confident walking into a meeting, only to discover that leverage levels or credit patterns change the lender’s comfort level.

National Credit Education Month is not just about checking your score. It is about understanding how your full financial profile is viewed across the table. Is your debt load already stretched? Are payments consistent? Does your credit history reflect discipline over time? If additional collateral were required, would it be available?

Preparation shifts that conversation.

Our Becoming Bankable® program was created to help business owners address these questions before they apply. We break down the 5 C’s of Credit in practical terms, review financial statements and debt structure, and help you see your business the way a lender does.

Credit education is not about reacting to a denial. It is about positioning your business to avoid one.

The post Small Business Credit Readiness: Why Lenders Still Say No appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

Many underestimate how much personal credit influences loan review and approval.

When lenders evaluate a business loan application, they commonly apply the 5 C’s of Credit: Character, Capacity, Capital, Collateral, and Conditions. Credit appears under Character, but it can shape how the entire application is perceived.

Personal Credit Still Carries Weight

Even if your business operates as an LLC or corporation, most traditional lenders require a personal guarantee. That means your personal credit profile becomes part of the underwriting analysis.

While standards vary, many banks prefer to see personal FICO scores in the upper 600s to 700+ range for stronger consideration. Lenders also review patterns such as credit utilization, often ideally below 30 percent, payment consistency, total debt obligations, and any public records.

Business owners can monitor their personal credit through platforms such as Credit Karma and obtain official reports from AnnualCreditReport.com.

Business Credit Matters Too

Lenders may also review business credit reports from Dun & Bradstreet, Experian Business, and Equifax Business. A PAYDEX score of 80 or higher is typically considered strong payment performance.

Business credit reflects vendor relationships, trade payment history, and overall financial discipline. Strong business credit can reinforce credibility, while weak or thin files may raise additional questions.

Credit Is Only One Part of the Decision

Strong credit can improve loan terms and increase lender confidence. Weak credit can lead to higher rates, smaller loan amounts, or additional collateral requirements.

However, credit alone does not secure approval. Capacity, reflected in cash flow and financial statements, often carries equal or greater weight.

If you need to strengthen your personal credit profile, explore the free financial wellness resources available through our partnership with GreenPath Financial Wellness.

Planning to apply for a business loan or line of credit soon? Is your business lender ready? Take our free lender readiness assessment. Our Becoming Bankable® Series is designed to help you learn the language of lending, optimize your business systems, and position your company to unlock the capital needed to fuel your success story.

The post Small Business Lender Readiness Starts With Credit appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

Customer growth remains a top priority

According to the 2025 Bank of America Business Owner Report, 47% of small business owners plan to expand their customer base. This focus reflects a push toward broader market reach through improved marketing, stronger customer relationships, and more intentional outreach. Many owners see customer diversification as a way to manage risk, improve stability, and build long-term revenue resilience.

Businesses are expanding their products and services

Thirty-nine percent of owners plan to expand their products or services. This focus on innovation signals a desire to capture new demand, meet evolving customer needs, and create additional revenue streams. For many small businesses, this may include upgrading offerings, exploring new partnerships, or packaging services more strategically.

Marketing innovation is gaining momentum

Thirty-five percent of business owners plan to explore new marketing tactics over the next few years. This includes strengthening digital marketing, improving social media engagement, and testing new ways to reach target customers. Many owners see modern marketing capabilities as essential for growth, especially as consumer behavior shifts and digital channels continue to influence buying decisions. A stronger marketing strategy supports both customer acquisition and long-term brand visibility.

AI and digital tools are shaping future strategy

Thirty-one percent of business owners plan to adopt AI and digital tools in the coming years. This shift is not about technology for technology’s sake. Many owners view digital adoption as a way to streamline workflows, reduce manual processes, and strengthen customer engagement. It also supports productivity growth without always requiring additional staff.

As you plan for the years ahead, consider which of these strategic priorities aligns most with your growth goals. Building a deliberate strategy now can help position your business for success well into the next decade.

Let’s Strengthen Your Next Stage of Growth
Preparing for long-term growth requires a clear strategy and strong financial readiness. We help business owners stay lender-ready, improve operational stability, and position their companies for sustainable growth. If you are planning your next stage of development, let’s connect.

Click the image to download your free 2026 Small Business Readiness Brief

The post How Small Businesses Are Planning for Growth appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

This week, we shift from planning to the real-world pressures owners are navigating every day. Rising costs, supply chain challenges, and labor shortages are shaping how small businesses operate and make decisions, and the latest data gives us a clearer picture of what this means for the year ahead.

These concerns provide the backdrop for the operational pressures owners are navigating today.

The concerns shaping operational decisions

According to the 2025 Bank of America Business Owner Report, the top issues business owners see over the next 12 months include inflation (70%), tariff policy (64%), the US political environment (64%), interest rates (58%), and recession concerns (57%). These concerns influence pricing, vendor selection, cash flow decisions, and borrowing behavior. They also help explain why so many owners are reviewing operations more closely as they plan for 2026.

Costs and cash flow are under pressure

Seventy-seven percent of business owners say their costs increased over the last 12 months, with an average rise of 18%. During the same period, prices increased by only 12%. This gap signals margin pressure for many small businesses and highlights the need to keep a close eye on costs, pricing decisions, and cash flow needs. Owners are responding by reviewing expenses, tightening spending, and revisiting how they price products and services.

Supply chain instability continues

Seventy-five percent of business owners report that they are still experiencing supply chain issues. Among those affected, 52% raised prices to offset the impact, and 32% are having difficulty sourcing products or supplies. These realities often lead to changes in vendor relationships, inventory planning, and customer communication. For many small businesses, refining procurement strategies and building more resilient supply chains can help reduce operational risk.

Labor challenges are shaping staffing decisions

Labor shortages remain a real constraint. Sixty-one percent of owners say they are impacted, and half are working more hours to fill the gaps. Others are offering higher wages or investing in tools that make the team’s work more efficient. Simple digital tools and workflow improvements can support productivity without adding headcount.

As you review your own plans for 2026, reflect on which of these pressures you are experiencing the most. In the next article in the series, we will explore the strategic decisions business owners are prioritizing for long-term growth.

Let’s Strengthen Your Next Stage of Growth
Preparing for 2026 requires a clear strategy and strong financial readiness.

We help business owners stay lender-ready, improve operational stability, and position their companies for sustainable growth. If you are planning your next stage of growth, let’s connect.

The post Operational Pressures Shaping Small Business Decisions in 2026 appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.

Uncertainty Remains the Constant

This marks yet another chapter in a trend we have tracked throughout the year: uncertainty remains persistently high, even when key indicators suggest stability. Owners continue to weigh solid GDP growth against mixed signals in inflation, labor costs, and access to credit. The recent implementation of new tariffs in August has also added to cost concerns and made planning more difficult for many firms. The result is a business climate where confidence exists, but conviction lags.

Optimism Without Conviction

In earlier posts, The Cautious Recovery: When Relief Doesn’t Equal Growth Confidence and When Business Optimism Doesn’t Equal Investment: Another Small Business Paradox, we noted that optimism alone rarely translates into new spending or hiring. The latest NFIB data reinforces that pattern. Even as earnings improve slightly and hiring intentions rise, capital spending plans remain historically weak. It is a portrait of restrained investment shaped by persistent uncertainty.

Strategic Moves in an Uncertain Market

For small and mid-sized firms, this environment calls for focus and agility. Rather than waiting for perfect clarity, leaders can strengthen their footing by monitoring cash flow closely, maintaining open credit lines, and prioritizing investments that improve efficiency or resilience.

Periods of elevated uncertainty often separate businesses that react from those that adapt. Owners who continue to plan, measure, and invest strategically, even at a slower pace, are best positioned to capture growth once the fog lifts.

We can help you prepare for this environment.
Our team works with business owners to strengthen strategy, improve financial readiness, and stay lender-ready through shifting conditions. Connect with us today.

The post Rising Uncertainty, Slowing Optimism: What Small Businesses Are Signaling Now appeared first on Strategic Thinktank, Inc. | Your SMB Experts | Consulting services for small and mid-sized businesses.