Taxes, Regulations, and Trade Policies in Focus as Small Business Owners Plan for 2025

Taxation, Regulations, and Trade Policies Are Top of Mind

A recent KeyBank Small Business Flash Poll ¹ found 61% of respondents were likely to seek clarity and hold off on major business decisions until after the election, while only 12% said the election would have no impact on their 2025 planning. The poll also found business owners anticipate policy shifts will most affect areas such as: 

• Taxation (45%)
• Regulations (34%)
• Trade policies (31%)

Despite challenges posed by preelection uncertainty surrounding anticipated policy changes, small business owners are preparing for growth, with nearly one-third (32%) expecting to expand their staff in 2025. 

Many Anticipate Interest Rate Changes to Have a Positive Impact on their Businesses

KeyBank’s recent Small Business Flash Poll also showed higher interest rates have impacted small business owners in many ways, including:

• 38% of respondents faced reduced profit margins
• 37% faced increased borrowing costs
• 31% have deferred capital investment because of high interest rates

At the same time, more than half of respondents (56%) expect interest rate changes to affect their businesses positively. The poll found they’ve adapted to the rate environment by increasing cash reserves (43%), reducing reliance on debt (37%), and diversifying funding sources (32%). 

Planning Is Critical for Success in the New Year

As small business owners plan for 2025, it is important that they talk with their bankers to develop strategies and explore solutions that can help them adapt to and persevere through potential policy shifts and changes. Banks are at a pivotal moment to help their business clients navigate cash flow and business operations concerns. Working with a trusted banker can ensure small business owners have the resources they need to prepare for whatever lies ahead.