Surviving Tariffs, Tighter Lending and More: A Small Business Perspective

In today’s economic climate, many small business owners face new challenges. Tariff shifts have increased costs, credit markets have tightened and recent SBA rule changes are reshaping access to government-backed financing. Yet, even amid uncertainty, smart financial strategy and strong banking partnerships can help small businesses adapt, grow and stay resilient.

Understanding the Impact of Tariffs on Your Costs

Trade policies can change quickly, leaving small manufacturers, distributors and retailers exposed to fluctuating supply costs. Over the last 12 months, 67% of small and midsized businesses have been directly impacted by tarrifs, experiencing higher material costs, inventory delays and forced supplier changes.¹

• Update your cost models regularly. Review your pricing and supplier contracts every quarter to anticipate margin pressure.
• Diversify your supply chain. Seek multiple sourcing options – both domestic and international – to minimize disruption.
• Consider local partnerships. Working with regional suppliers can stabilize costs and shorten delivery timelines while supporting local economies.

Your business banker can assist with credit solutions that smooth out cash flows when inventory or input costs fluctuate.

Plan for Tighter Credit Conditions

When lending markets tighten, even healthy businesses can find access to capital slower or more selective.

• Build liquidity buffers. Retaining additional cash reserves or a business line of credit can provide flexibility when borrowing criteria tightens.
• Demonstrate financial discipline. Keep your financials current and clearly documented—strong reporting increases lender confidence.
• Explore alternative financing. Equipment loans, secured lines of credit or factoring can bridge funding gaps.

A proactive banking relationship helps you secure new credit options when you need them.

Explore SBA Lending Options

The changes to the SBA Lending programs remain very positive for small businesses. We can assist with business acquisitions, partnerships buyouts, business expansions and new business start-ups.

• Stay informed. The SBA routinely updates program guidance affecting loan size limits, guarantees or qualification criteria.
• Work with an experienced SBA lender. A Preferred Lender Institution, like Atlantic Union Bank, can clarify which programs—like 7(a), 504 or SBA Express—fit your evolving needs.
• Revisit your growth plans. If ownership structure, collateral or use of proceeds has changed, make sure your financing strategy still aligns with SBA standards.

Strengthen Your Financial Partnerships

During times of transition, collaboration is your greatest advantage. Your financial partners can help identify opportunities within changing regulations.

• Schedule annual financial reviews to discuss interest rate impacts and working capital management.
• Ask your banker about lending products that build in flexibility for growth or delay of major expenses.
• Use digital banking tools to monitor cash flow and streamline payments collection.

Turning Challenge into Opportunity

Periods of economic tightening often accelerate innovation. Businesses that remain agile—by controlling costs, strengthening relationships and tapping expertise—are best positioned to thrive once conditions improve. Partnering with a bank that understands small business challenges ensures you don’t face them alone.

Learn more about how Atlantic Union Bank partners with small businesses.
 

¹"How Tariffs are Impacting Small Businesses” Revenued.com

Small Business Administration (SBA) financing is subject to approval through the SBA 504 and SBA 7(a) programs. Loan terms, collateral and documentation requirements apply. Actual amortization, rate and extension of credit are subject to necessary credit approval. Atlantic Union Bank's credit standards and documentation requirements apply. Some restrictions may apply.

This publication is for informational purposes only and does not constitute a commitment to lend money, underwrite any proposed transaction, provide financing, arrange financing or provide any other services. Atlantic Union Bank has not given advice regarding the appropriate regulatory treatment, accounting treatment or possible tax consequences of the services described herein.