MAY 2025 INDUSTRY NEWS AND TRENDS
Tariff reprieve helps to slow inflation
The pace of inflation slowed last month and the consumer price index rose more slowly than expected, but economists warn that the data behind this relatively optimistic picture was captured before the impact of U.S. tariffs had been felt on the economy. Even with the most recent reductions in import duties, U.S. consumers are facing a tariff rate of 17.8%, which is the highest recorded in over 90 years according to the Yale Budget Lab.
Overall, analysts are predicting lower growth and higher inflation for the U.S. over the next few months.
SMBs face tougher lending requirements at the SBA
Changes at the Small Business Administration (SBA) will make it more difficult for some small businesses to obtain loans for the foreseeable future. The SBA has decreased staff, integrated loan services, and tightened lending requirements around credit and citizenship. As a result, SBA loans will reflect stricter criteria, require more documentation, and take longer for applications to be processed.
SBA loan approvals for manufacturing are surging
Despite tougher lending criteria, applications and approvals for SBA loans are surging according to a new report. The agency attributes the surge to the Trump administration’s focus on “Made in America” manufacturing. Approximately 98% of American manufacturers fit the profile of a small business according to SBA criteria.
According to the most recent data, 74% more business owners were approved for manufacturing loans in the first 90 days of President Trump’s administration compared to the first 90 days of President Biden’s administration.
“Net never” terms are placing B2B businesses at risk
A new PYMNTS article examines the impact on SMBs of increasingly long payment cycles and describes the rise of what industry insiders are calling “net never” terms that stretch to 120 days.
SMBs are scrambling to access working capital and develop more resilient cash-flow strategies at a time when payment terms continue to lengthen.
