--- source: National Federation of Independent Business url: https://www.nfib.com/wp-content/uploads/2026/03/NFIB-SBET-Report-Feb.-2026.pdf document_type: pdf date_retrieved: 2026-03-16 period: February 2026 parent_publication: NFIB Small Business Economic Trends (SBET) indicators_covered: [NFIB Business Optimism Index] alternate_urls: - https://www.nfib.com/news/monthly_report/sbet/ - https://www.nfib.com/news/news/nfib-south-dakota-state-director-reacts-to-februarys-small-business-optimism-report/ --- # NFIB Small Business Economic Trends — February 2026 ## Small Business Optimism Index Components Seasonally Adjusted Level Change from Last Month Contribution to Index Change Plans to Increase Employment (net) 12% -4 * Plans to Make Capital Outlays 18% 0 * Plans to Increase Inventories (net) -2% 0 * Expect Economy to Improve (net) 18% -3 * Expect Real Sales Higher (net) 8% -8 * Current Inventory-too low (net) -2% 1 * Current Job Openings 33% 2 * Expected Credit Conditions (net) -5% -2 * Now a Good Time to Expand 15% 0 * Earnings Trends (net) -14% 7 * Index Component Total Change -7 Based on a Survey of Small and Independent Business Owners ## Economic Trends _____________________________________ NFIB Research Center has collected Small Business Economic Trends Data with Quarterly surveys since 1973 and monthly surveys since 1986. The sample is drawn from the membership files of the National Federation of Independent Business (NFIB). Each was mailed a questionnaire and one reminder. Subscriptions for twelve monthly SBET issues are $250. Historical and unadjusted data are available, along with a copy of the questionnaire, from the NFIB Research Center. You may reproduce Small Business Economic Trends items if you cite the publication name and date and note it is a copyright of the NFIB Research Center. © NFIB Research Center. ISBS #094079124-2. Chief Economist William C. Dunkelberg and Executive Director of the NFIB Research Center Holly Wade are responsible for the report. ## In This Issue ____________________________ Summary Commentary & Member Quotes Optimism Uncertainty Employment Index Outlook Earnings Sales Prices Employment Compensation Credit Conditions Inventories Capital Outlays Health of Business Single Most Important Problem Survey Profile Survey Questions 1 4 5 6 7 7 9 10 11 12 13 15 17 19 20 21 22 23 ## Summary ## Optimism Index The Small Business Optimism Index for February was 98.8, down 0.5 points from January. The Index remains slightly above its 52-year average of 98 but marks the second consecutive monthly decline. Of the 10 Optimism Index components, three increased, four decreased, and three were unchanged. Only one component saw a substantial increase, with earnings trends increasing 7 points. This larger gain was counterbalanced by a decline in sales expectations, which fell just below its December level after a substantial January gain. While small business optimism edged down slightly in February, uncertainty declined more meaningfully. The Uncertainty Index fell 3 points from January to 88. A decline in owners reporting uncertainty about whether to make capital expenditures was the primary driver of the lower Uncertainty Index. The Employment Index ticked up in February, up nearly a point from January to 103.5. After a brief leveling off from December to January , February showed further tightness. The current reading is 2.3 points above the 2025 average of 101.2, and 3.5 points above the historical average of 100. These higher numbers are indicative of general tightness in the labor market, though the market remains in balance overall. In February, 33% (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up 2 points from January. Twenty-eight percent had openings for skilled workers (up 3 points), and 10% had openings for unskilled labor (unchanged). A seasonally adjusted net 12% of owners plan to create new jobs in the next three months, down 4 points from January and the lowest level since May 2025. Overall, 54% reported hiring or trying to hire in February, up 4 points from January. Forty-six percent (85% of those hiring or trying to hire) of owners reported few or no qualified applicants for the positions they were trying to fill (up 2 points). Twenty-five percent of owners reported few qualified applicants for their open positions (unchanged), and 21% reported none (up 2 points). In February, 15% of small business owners cited labor quality as their single most important problem, down 1 point from January and the fourth consecutive monthly decline. The last time labor quality, reported as the single most important problem, was this low was in April 2020. The share of owners reporting labor costs as the single most important problem remained at 9%. ## Capital Spending Fifty-four percent of small business owners reported making capital outlays in the last six months, down 6 points from January. Of those making expenditures, 37% reported spending on new equipment (down 7 points), 28% acquired vehicles (up 2 points), and 15% improved or expanded facilities (down 1 point). Ten percent spent money on new fixtures and furniture (down 3 points), and 5% acquired new buildings or land for expansion (unchanged). Eighteen percent (seasonally adjusted) of small business owners plan to make capital outlays in the next six months, unchanged from January. Historically, this is a weak reading. This survey was conducted in February 2026. A sample of 5,000 small-business owners/members was drawn. Four hundred twenty-eight (428) usable responses were received — a response rate of 8.6 percent. ## Labor Markets ## Sales And Inventories A seasonally adjusted net 1% of all owners (seasonally adjusted) reported higher nominal sales in the past three months, up 7 points from January. The percent reporting actual sales gains are now close to the historical average of a net 0%. The last time actual sales were this high was in May 2022. While actual sales volume rose in February, sales expectations declined. The net percent of owners expecting higher real sales volumes over the next quarter fell 8 points from January to a net 8% (seasonally adjusted). The net percent of owners reporting inventory gains fell 6 points to a net -3% (seasonally adjusted). Not seasonally adjusted, 10% reported increases in stocks (down 4 points), and 18% reported reductions (up 1 point). The surge in reports of higher sales depleted inventory stocks. A net -2% (seasonally adjusted) of owners viewed current inventory stocks as “too low” in February, up 1 point from January. A net -2% (seasonally adjusted) of owners plan inventory investment in the coming months, unchanged from January in spite of the surge in sales and resulting inventory reductions. In February, 59% of small business owners reported that supply chain disruptions affected their business to some extent, a decrease of 3 points from January. Five percent reported a significant impact (up 1 point), 14% reported a moderate impact (down 3 points), 40% reported a mild impact (down 1 point), and 39% reported no impact (up 2 points). ## Compensation And Earnings Seasonally adjusted, a net 34% reported raising compensation, up 2 points from January and the highest level since March 2025. A seasonally adjusted net 22% plan to raise compensation in the next three months, unchanged from January. The frequency of reports of positive profit trends rose 7 points from January to a net -14% (seasonally adjusted). The last time earning trends were this high was in December 2021. Among owners reporting lower profits, 28% blamed weaker sales, 19% cited the usual seasonal change, and 13% cited rising material costs. Nine percent cited price change from their product(s) or service(s), 7% cited labor costs, and 7% reported insurance costs. Among owners reporting higher profits, 61% cited sales volume, 12% cited higher selling prices, and 11% cited usual seasonal change. ## Credit Markets A net 5% reported their last loan was harder to get than in previous attempts, up 2 points from January and close to the historical average of a net 6%. In February, a net -3% of owners reported paying a higher interest rate on their most recent loan, up 3 points from January. The average interest rate paid on short maturity loans was 8.2% in February, down 0.9 points from January. Twenty-five percent of all owners reported borrowing regularly, unchanged from January. ## Inflation In February, reports of actual price increases and planned price hikes declined. The net percent of owners raising average selling prices fell 2 points from January to a net 24% (seasonally adjusted). This marked the third consecutive month that actual price increases slowed, though the changes remain well above the historical average. Unadjusted, 35% reported higher average prices (down 1 point), and 11% reported lower average selling prices (unchanged). Looking forward to the next three months, a net 28% (seasonally adjusted) plan to increase prices, down 4 points from January. As with actual price changes, this is also comfortably above its historical average. Twelve percent of owners reported that inflation was their single most important business problem, unchanged from January and ranking as the third top issue. ## Outlook When asked to evaluate the overall health of their business, 12% rated it as excellent (down 2 points), 55% as good (up 1 point), 26% as fair (down 1 point), and 5% as poor (up 1 point). The net percent of owners expecting better business conditions fell 3 points from January to a net 18% (seasonally adjusted). This level is still well above its historical average of a net 4%. In February, 15% (seasonally adjusted) reported that it is a good time to expand their business, unchanged from January. This is near the historical average of 15%. ## Single Most Important Problem In February, 19% of small business owners reported taxes as their single most important problem, up 1 point from January and ranking as the top problem. Taxes ranking as the top issue is typically a sign that other, less consistent issues (labor quality, inflation, poor sales, etc.) are not currently in a bad state. The percent of small business owners reporting labor quality as the single most important problem for their business fell 1 point from January to 15%, marking the fourth consecutive monthly decline. The last time labor quality, reported as the single most important problem, was this low was in April 2020. The share of owners reporting labor costs as the single most important problem remained at 9%. Twelve percent of owners reported that inflation was their single most important business problem, unchanged from January. The percent of small business owners reporting poor sales as their top business problem rose 2 points to 11%. Poor sales has risen substantially over the past few years. Generally, increases in poor sales as the top issue is concerning, as poor sales peaks in a recession. Hopefully, in this case, the increase is at least partially reflecting the decline in inflation and labor quality as top issues crowding out other smaller problems. The percent of small business owners reporting government regulations and red tape as their single most important problem rose 1 point to 10%. In February, 9% reported the cost or availability of insurance as their single most important problem, down 4 points from January. Eight percent reported competition from large businesses as their single most important problem, up 2 points from January. The last time competition from large businesses, reported as the single most important problem, was this high was in May 2021. Four percent reported that financing and interest rates were their top business problem in February, up 1 point from January. ## Commentary ## Overview Recently released government data are framing economic conditions as a mixed picture with solid GDP estimates and employment reports that move wildly monthly to month. When the government hires 100 workers, GDP goes up. When GM hires 100 workers, GDP goes up. GDP counts the values of all goods and services produced in the US, government and private alike. From 2020 to 2024, job growth and GDP were boosted by increases in government employment and spending, but that trend has now reversed. This will lead to some decline in the job numbers. While private sector capital spending does raise GDP by producing lots of stuff, feeling the impact of that spending may take some time as the new investments are put to work. The process is simple: Give employees better tools to do their jobs and output per hour rises. Salaries rise and fewer workers are needed, freeing up employees to apply their skills elsewhere. Capital spending has not been particularly strong for small businesses, but what they buy is undoubtedly more productive. Robots and AI will continue to increase worker productivity, especially in the small business sector. ## Quotes- Nfib Members “We had a large government refund in 2025 for the Employee Retention Tax Credit which really helped. However, we are just barely getting by and not getting ahead.” – Agriculture, NY “Small businesses face daunting challenges in today’s economy. Higher labor costs, ridiculous high insurance costs, and extensive regulations. Small businesses seem to be set up to fail in the current economic climate, leaving little and eventually no competition for big conglomerates. Very sad to see this in the US!” – Agriculture, OH “The never-ending increase in the cost of doing business causes small businesses to work longer hours for less profits. Every day, every month, every year, we keep less of the dollar we bring in.” – Services, MO “The expense of health insurance is ridiculous. As a manufacturer it is nearly impossible to get liability coverage, when you are able the price is unsustainable.” – Manufacturing, KS “If inputs and commodities don’t correct very quickly, there will be a huge exodus of young people out of the industry. This country’s food security can not afford that.” – Agriculture, MI “Inflationary pressures continue to persist, and they make it more difficult to plan pricing and capital expenditures. Overhead expenses continue to rise, more than what is reasonable.” – Agriculture, IN “We work in the auto industry and the lack of new vehicles shipped to the new car dealers really affects our business.” – Wholesale, CA “We need to keep taxes as low as possible so I can pay employees more money.” – Financial, KS “Too much red tape, taxes, and growth restricted by laws that apply to highyielding companies, preventing ours from growing!” – Retail, NY “Health insurance is out of control and small businesses and their employees are footing the bill. Something must be done!” – Manufacturing, MN OVERVIEW – SMALL BUSINESS OPTIMISM ## Optimism Index Based on Ten Survey Indicators January 1986 to February 2026 (Seasonally Adjusted 1986=100) 1 Questions included in the Optimism Index (see pages 22-23) ## Optimism Index Based on Ten Survey Indicators (Seasonally Adjusted 1986=100) Jan Feb Mar Apr May 2021 95.0 95.8 98.2 99.8 2022 97.1 95.7 93.2 2023 90.3 90.9 2024 89.9 Aug Sep Oct Nov Dec 99.6 102.5 99.7 100.1 99.1 98.2 98.4 98.9 93.2 93.1 89.5 89.9 91.8 92.1 91.3 91.9 89.8 90.1 89.0 89.4 91.0 91.9 91.3 90.8 90.7 90.6 91.9 89.4 88.5 89.7 90.5 91.5 93.7 91.2 91.5 93.7 101.7 105.1 2025 102.8 100.7 97.4 95.8 98.8 98.6 100.3 100.8 98.8 98.2 99.3 Jun Jul 99.0 99.5 98.8 ## Optimism Index Components Hard: Job Creation Plans, Job Openings, Inventory Plans, Earnings, Capital Expenditure Plans Soft: Expected Business Conditions, Outlook for Expansion, Expected Real Sales, Expected Credit Conditions, Inventory Satisfaction ## Small Business Uncertainty ## Uncertainty Index Sum of “Don’t Know” & “Uncertain” Answers on 6 Questions January 1986 to February 2026 2 Questions included in the Uncertainty Index (see pages 22-23) ## Uncertainty Index Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 80 75 81 80 79 83 76 69 74 67 63 72 2022 71 73 63 69 59 55 67 74 72 72 68 71 2023 76 71 74 72 71 76 80 77 79 76 65 71 2024 73 76 77 78 85 82 90 92 103 110 103 86 2025 100 104 96 92 94 89 97 93 100 88 91 84 91 88 Sum of “Don’t Know” & “Uncertain” Answers on 6 Questions ## Small Business Employment Index ## Employment Index Based on Six Components April 1986 to February 2026 (Seasonally Adjusted 1987=100) ## Employment Index Based on Six Components (Seasonally Adjusted 1987=100) 2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 99.3 99.5 102.3 103.6 103.2 106.7 104.6 104.9 105.9 106.5 105.6 108.0 2022 106.6 105.6 105.8 105.4 107.1 106.9 106.1 104.4 105.3 106.8 103.6 105.9 2023 105.7 107.8 105.8 104.0 103.9 103.4 103.7 103.6 103.9 103.2 103.4 103.6 2024 103.9 101.5 102.4 103.3 103.3 103.9 102.0 101.7 101.5 102.0 103.8 101.2 2025 102.3 100.7 102.9 101.9 99.6 100.9 100.6 101.0 101.7 100.1 100.6 102.5 2026 102.6 103.5 ## Small Business Outlook ## Outlook Good Time to Expand and Expected General Business Conditions January 1986 to February 2026 (Seasonally Adjusted) SMALL BUSINESS OUTLOOK (CONTINUED) ## Outlook For Expansion Percent Next Three Months “Good Time to Expand" (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 8 6 11 14 13 15 13 11 11 10 10 11 2022 9 8 6 4 6 3 4 5 6 5 6 5 2023 7 6 2 3 3 6 6 6 5 6 8 8 2024 8 5 4 4 4 4 5 4 4 6 14 20 2025 17 12 9 9 10 11 16 14 11 13 13 13 15 15 ## Most Important Reason For Expansion Outlook Reason Percent by Expansion Outlook Reason Good Time Not Good Time Uncertain Economic Conditions 8 19 14 Sales Prospects 3 4 4 Fin. & Interest Rates 0 3 3 Cost of Expansion 0 6 7 Political Climate 3 5 8 Other / Not Available 0 1 2 ## Outlook For General Business Conditions Net Percent (“Better” Minus “Worse”) Six Months From Now (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -23 -19 -8 -15 -26 -12 -20 -28 -33 -37 -38 -35 2022 -33 -35 -49 -50 -54 -61 -52 -42 -44 -46 -43 -51 2023 -45 -47 -47 -49 -50 -40 -30 -37 -43 -43 -42 -36 2024 -38 -39 -36 -37 -30 -25 -7 -13 -12 -5 36 52 2025 47 37 21 15 25 22 36 34 23 20 15 24 21 18 February 2026 ## Small Business Earnings ## Earnings Actual Last Three Months January 1986 to February 2026 (Seasonally Adjusted) ## Actual Earnings Changes Net Percent (“Higher” Minus “Lower”) Last Three Months Compared to Prior Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -16 -11 -15 -7 -11 -5 -13 -15 -14 -17 -17 -14 2022 -17 -17 -17 -17 -24 -25 -26 -33 -31 -30 -22 -30 2023 -26 -23 -18 -23 -26 -24 -30 -25 -24 -32 -32 -25 2024 -30 -31 -29 -27 -30 -29 -30 -37 -34 -33 -26 -26 2025 -25 -24 -28 -21 -26 -22 -22 -19 -16 -25 -23 -20 -21 -14 ## Most Important Reason For Lower Earnings Percent Reason February 2026 Reason Current Month One Year Ago Two Years Ago Sales Volume 10 16 9 Increased Costs* 11 10 15 Cut Selling Prices 3 3 4 Usual Seasonal Change 7 5 7 Other 2 2 0 * Increased costs include labor, materials, finance, taxes, and regulatory costs. ## Small Business Sales ## Sales Actual (Prior Three Months) and Expected (Next Three Months) January 1986 to February 2026 (Seasonally Adjusted) ## Actual Sales Changes Net Percent (“Higher” Minus “Lower”) Last Three Months Compared to Prior Three Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -7 2 -6 3 7 9 5 0 3 -4 -2 1 2022 2 0 4 3 1 -2 -5 -8 -5 -8 -7 -8 2023 -4 -6 -6 -9 -8 -10 -13 -14 -8 -17 -17 -11 2024 -11 -13 -10 -13 -14 -12 -16 -16 -17 -20 -13 -13 2025 -14 -12 -11 -8 -13 -5 -9 -9 -7 -13 -9 -8 -6 1 ## Sales Expectations Net Percent (“Higher” Minus “Lower”) During Next Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -6 -8 0 1 3 7 -4 -2 2 0 2 3 2022 -3 -6 -18 -12 -15 -28 -29 -19 -10 -13 -8 -10 2023 -14 -9 -15 -19 -21 -14 -12 -14 -13 -10 -8 -4 2024 -16 -10 -18 -12 -13 -13 -9 -18 -9 -4 14 22 2025 20 14 3 -1 10 7 6 12 8 6 15 10 16 8 (Seasonally Adjusted) ## Small Business Prices ## Prices Actual Last Three Months and Planned Next Three Months January 1986 to February 2026 (Seasonally Adjusted) ## Actual Price Changes Net Percent (“Higher” Minus “Lower”) Compared to Three Months Ago (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 17 25 26 36 40 47 46 49 46 53 59 57 2022 58 64 66 63 65 63 56 53 51 50 51 43 2023 42 38 37 33 32 29 25 27 29 30 25 25 2024 22 21 28 25 25 27 22 20 22 21 24 24 2025 22 32 26 25 25 29 24 21 24 21 34 30 26 24 ## Price Plans Net Percent (“Higher” Minus “Lower”) in the Next Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 28 34 34 36 43 44 44 44 46 51 54 49 2022 47 47 52 48 51 49 37 32 31 34 34 24 2023 29 25 26 21 29 31 27 30 30 33 34 32 2024 33 30 33 26 28 26 24 25 25 26 28 28 2025 26 29 30 28 31 32 28 26 31 30 30 28 32 28 ## Small Business Employment ## Actual Employment Changes Net Percent (“Increase” Minus “Decrease”) in the Last Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 0 -3 -2 1 -5 -2 -6 -8 -1 -2 -1 1 2022 -1 1 -2 -2 -4 -2 -4 -8 -4 -2 -3 1 2023 2 4 2 -2 -4 -2 -2 -4 -2 -3 -2 -2 2024 0 -1 -2 0 -2 -5 -3 -6 -4 -3 -1 -3 2025 1 -3 -1 1 -2 -8 -2 -5 -3 -4 -3 -1 1 3 ## Qualified Applicants For Job Openings Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 46 51 51 54 57 56 57 60 62 58 56 57 2022 55 57 55 55 61 60 57 57 57 55 54 51 2023 52 54 53 55 55 54 56 54 57 55 50 49 2024 49 51 48 51 51 51 49 56 52 46 48 49 2025 47 48 47 47 48 50 48 43 50 49 50 48 44 46 ## Employment Planned Next Three Months and Current Job Openings January 1986 to February 2026 (Seasonally Adjusted) Percent Few or No Qualified Applicants SMALL BUSINESS EMPLOYMENT (CONTINUED) ## Job Openings Percent With Positions Not Able to Fill Right Now (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 33 40 42 44 48 46 49 50 51 49 48 49 2022 47 48 47 47 51 50 49 49 46 46 44 41 2023 45 47 43 45 44 42 42 40 43 43 40 40 2024 39 37 37 40 42 37 38 40 34 35 36 35 2025 35 38 40 34 34 36 33 32 32 32 33 33 31 33 ## Hiring Plans Net Percent (“Increase” Minus “Decrease”) in the Next Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 17 18 22 21 27 28 27 32 26 26 25 28 2022 26 19 20 20 26 19 20 21 23 20 18 17 2023 19 17 15 17 19 15 17 17 18 17 18 16 2024 14 12 11 12 15 15 15 13 15 15 18 19 2025 18 15 12 13 12 13 14 15 16 15 19 17 16 12 ## Small Business Compensation ## Compensation Actual Last Three Months and Planned Next Three Months January 1986 to February 2026 (Seasonally Adjusted) SMALL BUSINESS COMPENSATION (CONTINUED) ## Actual Compensation Changes Net Percent (“Increase” Minus “Decrease”) During Last Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 25 25 28 31 34 39 38 41 42 44 44 48 2022 50 45 49 46 49 48 48 46 45 44 40 44 2023 46 46 42 40 41 36 38 36 36 36 36 36 2024 39 35 38 38 37 38 33 33 32 31 32 29 2025 33 33 38 33 26 33 27 29 31 26 26 31 32 34 ## Compensation Plans Net Percent (“Increase” Minus “Decrease”) in the Next Three Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 17 19 17 20 22 26 27 26 30 32 32 32 2022 27 26 28 27 25 28 25 26 23 32 28 27 2023 22 23 22 21 22 22 21 26 23 24 30 29 2024 26 19 21 21 18 22 18 20 23 23 28 24 2025 20 18 19 17 20 19 17 20 19 19 24 24 22 22 ## Prices And Labor Compensation Net Percent Price Increase and Net Percent Compensation January 1986 to February 2026 (Seasonally Adjusted) (Seasonally Adjusted) ## Small Business Credit Conditions ## Credit Conditions Loan Availability Compared to Three Months Ago* January 1986 to February 2026 ## Regular Borrowers Percent Borrowing at Least Once Every Three Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 23 26 23 24 23 21 21 20 20 23 21 23 2022 23 23 25 26 23 25 26 27 26 28 27 28 2023 29 30 30 31 29 28 27 28 31 27 31 29 2024 29 25 28 31 31 28 27 27 26 25 28 25 2025 27 24 28 26 25 26 25 23 26 23 23 25 25 25 ## Availability Of Loans Net Percent (“Easier” Minus “Harder”) Compared to Three Months Ago (Regular Borrowers) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -1 -1 -1 -3 -2 -2 -2 -3 -4 -2 -1 -4 2022 -2 -2 -3 -4 -4 -3 -5 -6 -5 -6 -5 -7 2023 -6 -5 -9 -6 -6 -6 -6 -4 -8 -7 -8 -8 2024 -6 -7 -8 -8 -6 -7 -6 -7 -8 -6 -7 -4 2025 -3 -2 -6 -5 -4 -5 -4 -3 -7 -5 -4 -5 -3 -5 SMALL BUSINESS CREDIT CONDITIONS (CONTINUED) ## Expect Easier Credit Conditions Net Percent (“Easier” Minus “Harder”) During Next Three Months (Regular Borrowers) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -3 -6 -3 -3 -3 -4 -4 -4 -4 -4 -3 -4 2022 -4 -4 -4 -5 -4 -5 -7 -8 -6 -8 -6 -9 2023 -8 -6 -9 -8 -10 -8 -8 -6 -10 -9 -11 -8 2024 -8 -6 -8 -9 -7 -7 -7 -8 -8 -6 -5 -2 2025 -4 -3 -4 -7 -4 -4 -4 -4 -7 -3 -5 -5 -3 -5 ## Interest Rates Relative Rates and Actual Rates Last Three Months ## Relative Interest Rate Paid By ## Regular Borrowers Net Percent (“Higher” Minus “Lower”) Compared to Three Months Ago Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -4 -2 0 0 1 1 1 2 0 2 2 4 2022 4 6 9 16 14 16 19 21 22 22 23 23 2023 25 24 26 26 24 24 23 24 26 22 25 20 2024 18 16 17 21 20 15 15 15 12 5 5 1 2025 3 4 4 6 7 9 5 6 7 1 2 -3 -6 -3 Borrowing at Least Once Every Three Months. January 1986 to February 2026 SMALL BUSINESS CREDIT CONDITIONS (CONTINUED) ## Actual Interest Rate Paid On ## Short-Term Loans By Borrowers Average Interest Rate Paid Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 4.9 4.9 5.1 5.1 4.9 4.9 4.9 4.6 5.6 4.9 5.1 5.3 2022 5.0 5.7 5.7 5.3 5.7 5.3 5.9 6.2 6.7 6.7 7.9 7.7 2023 7.6 7.9 7.8 8.5 7.8 9.2 8.5 9.0 9.8 9.1 9.3 9.8 2024 9.0 8.7 9.8 9.3 9.0 9.5 9.4 9.5 10.1 9.7 8.8 8.7 2025 9.4 8.8 8.9 8.9 8.7 8.8 8.7 8.1 8.8 8.7 7.9 8.4 9.1 8.2 ## Small Business Inventories ## Inventories Actual (Last Three Months) and Planned (Next Three Months) January 1986 to February 2026 (Seasonally Adjusted) ## Actual Inventory Changes Net Percent (“Increase” Minus “Decrease”) During Last Three Months (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 -4 -3 -5 -2 -1 1 -6 -2 3 0 3 7 2022 9 5 0 4 -1 -4 1 -6 -2 -1 5 0 2023 6 -1 -1 -7 -2 -3 -3 -7 -3 -6 -3 -2 2024 0 -1 -7 -6 -7 -3 -9 -9 -13 -9 -7 0 2025 -6 -6 -3 -5 -5 -8 -8 -6 -3 -6 -7 -1 3 -3 SMALL BUSINESS INVENTORIES (CONTINUED) CURRENT INVENTORY (TOO LOW) Net Percent (“Too Low” Minus “Too Large”) at Present Time (Seasonally Adjusted) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 5 5 3 7 8 11 12 11 10 9 15 9 2022 7 7 9 6 8 5 2 3 1 0 -2 1 2023 -1 -4 1 -5 -3 -4 -4 -5 -4 -3 0 -5 2024 -4 -4 -5 -4 -8 -2 -4 -5 -4 -2 -2 -1 2025 -1 -5 -7 -6 1 -5 -3 0 -7 -4 -1 -1 -3 -2 ## Inventory Plans Net Percent (“Increase” Minus “Decrease”) in the Next Three to Six Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 4 2 4 5 6 11 6 11 9 8 10 8 2022 3 2 2 1 1 -2 1 4 0 2 -4 -4 2023 -8 -7 -4 -5 -2 -3 -2 0 -1 0 -3 -5 2024 -3 -7 -7 -6 -6 -2 2 -1 -3 -2 1 6 2025 0 -1 -1 -4 -1 -1 1 1 1 -2 -1 -1 -2 -2 ## Inventory Satisfaction And Inventory Plans Net Percent (“Too Low” Minus “Too Large”) at Present Time Net Percent Planning to Add Inventories in the Next Three to Six Months January 1986 to February 2026 (Seasonally Adjusted) (Seasonally Adjusted) ## Small Business Capital Outlays ## Capital Expenditures Actual Last Six Months and Planned Next Three Months January 1986 to February 2026 (Seasonally Adjusted) ## Actual Capital Expenditures Percent Making a Capital Expenditure During the Last Six Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 55 57 59 57 59 53 55 55 53 56 55 57 2022 58 57 56 54 53 51 51 52 56 54 55 55 2023 59 60 57 56 57 53 55 56 57 57 61 58 2024 59 54 56 56 58 52 54 56 51 54 54 56 2025 58 58 59 58 56 50 55 56 56 55 52 56 60 54 ## Type Of Capital Expenditures Made Percent Purchasing or Leasing During Last Six Months February 2026 Type Current Month One Year Ago Two Years Ago Vehicles 28 30 22 Equipment 37 37 40 Furniture or Fixtures 10 12 12 Add. Bldgs. or Land 5 5 6 Improved Bldgs. or Land 15 13 18 SMALL BUSINESS CAPITAL OUTLAYS (CONTINUED) ## Amount Of Capital Expenditures Made Percent Distribution of Per Firm Expenditures During the Last Six Months February 2026 Amount Current Month One Year Ago Two Years Ago $1 to $999 1 2 2 $1,000 to $4,999 4 8 5 $5,000 to $9,999 3 3 4 $10,000 to $49,999 15 15 16 $50,000 to $99,999 12 15 11 $100,000 + 18 16 15 No Answer 1 0 1 ## Capital Expenditure Plans Percent Planning a Capital Expenditure During Next Three to Six Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 22 23 20 27 27 25 26 30 28 31 27 29 2022 29 27 26 27 25 23 22 25 24 23 24 23 2023 21 21 20 19 25 25 27 24 24 24 23 24 2024 23 21 20 22 23 23 23 24 19 22 28 27 2025 20 19 21 18 22 21 22 21 21 23 20 19 18 18 ## Small Business Health ## Overall Health Of Business February 2026 Rating Current Month One Month Ago Two Months Ago Excellent 12 14 9 Good 55 54 54 Fair 26 27 34 Poor 5 4 3 (Seasonally Adjusted) ## Single Most Important Problem ## Single Most Important Problem February 2026 Current One Year Ago Survey High Survey Low Taxes 19 16 32 8 Inflation 12 16 41 0 Poor Sales 11 9 34 2 Fin. & Interest Rates 4 3 37 0 Cost of Labor 9 12 13 2 Government Regulation 9 6 27 4 Comp. from Large Bus. 8 7 17 0 Quality of Labor 15 19 29 2 Cost/Avail. of Insurance 9 7 29 0 Other 2 0 31 0 Problem ## Selected Single Most Important Problem Inflation, Big Business, Insurance, and Regulation January 1986 to February 2026 ## Selected Single Most Important Problem Taxes, Interest Rates & Finance, Poor Sales, and Labor Quality January 1986 to February 2026 ## Survey Profile OWNER/MEMBERS PARTICIPATING IN ## Economic Survey Nfib Actual Number of Firms Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 1109 678 514 1516 659 592 1440 595 537 1431 613 639 2022 1504 665 560 1457 581 505 1351 622 557 1342 572 514 2023 1466 626 573 1365 632 496 1313 611 582 1382 573 518 2024 1287 604 506 1215 578 514 1309 590 559 1197 532 513 2025 1205 509 508 1078 485 382 953 472 403 984 505 429 959 428 NFIB OWNER/MEMBERS PARTICIPATING ## In Economic Survey Industry of Small Business NFIB OWNER/MEMBERS PARTICIPATING ## In Economic Survey Number of Full and Part-Time Employees February 2026 February 2026 ## Nfib Research Center Small ## Business Economic Survey ## Small Business Survey Questions Do you think the next three months will be a good time for small businesses to expand substantially? Why? 1, 2 8 What about the economy in general, do you think that six months from now general business conditions will be better than they are now, about the same, or worse? 1, 2 8 Were your net earnings or “income after taxes” from your business during the last calendar quarter higher, lower, or about the same as they were for the quarter before? 1 9 If higher or lower, what is the most important reason? 9 During the last calendar quarter, was your dollar sales volume higher, lower, or about the same as it was for the quarter before? 10 Overall, what do you expect to happen to the volume of goods and/or services (number of customers, units, hours billed, etc.) that you will sell during the next three months? 1, 2 How are your average selling prices now compared to three months ago? In the next three months, do you plan to change the price of your goods and/or services? ## Page In Report 10 11 11 During the last three months, did the total number of employees in your firm increase, decrease, or stay about the same? 12 If you have filled or attempted to fill any job opening in the past three months, how many qualified applicants were there for the position(s)? 12 Do you have any job openings that you are not able to fill right now? 1 13 In the next three months, do you expect to increase or decrease the total number of people working for you? 1, 2 13 Over the past three months, did you change average employee compensation (wages and benefits but not Social Security, U.C. taxes, etc.)? 14 Do you plan to change average employee compensation (wages and benefits but not Social Security, U.C. taxes, etc.) during the next three months? 14 ## Nfib Research Center Small ## Business Economic Survey Are…loans easier or harder to get than they were three months ago? Do you expect to find it easier or harder to obtain your required financing during the next three months? 1, 2 If you borrow money regularly (at least once every three months) as a part of your business activity, how does the rate of interest payable on your most recent loan compare with that paid three months ago? If you borrowed within the last three months for business purposes, and the loan maturity (pay back period) was 1 year or less, what interest rate did you pay? During the last three months, did you increase or decrease your inventories? At the present time, do you feel your inventories are too large, about right, or too low? 1 Looking ahead to the next three months to six months, do you expect, on balance, to increase your inventories, keep them about the same, or decrease them? 1 During the last six months, has your firm made any of the following capital expenditures? (Check all that apply) If [your firm made any capital expenditures], what was the total cost of these expenditures? Looking ahead, do you expect to make any capital expenditures in the next three to six months? 1, 2 15 16 16 17 17 18 18 19 20 20 How would you rate the overall health of your business today? 20 What is the single most important problem facing your business today? 21 Please classify your major business activity, using one of the categories of examples below. 22 How many employees do you have full and part-time, including yourself? 22 ## Small Business Survey Questions ## Page In ## Report