Main Street Monday: NFIB Says Credit Eases and Equipment Leads Spending
September 15, 2025
by Bob Coleman
Founder & Publisher
Main Street Monday: NFIB Says Credit Eases and Equipment Leads Spending
The August 2025 NFIB Small Business Economic Trends report shows Main Street holding steady as summer turns to fall. Entrepreneurs are feeling more upbeat about sales prospects, and overall confidence improved compared to earlier in the year. At the same time, uncertainty is beginning to ease, giving small firms a little more breathing room as they plan ahead.
Credit Market Conditions: No Major Red Flags
Access to credit remains generally available, with fewer owners reporting difficulties obtaining financing. Loan costs ticked down modestly, providing some relief after years of rising rates. Fewer small businesses are borrowing on a regular basis, which suggests many are cautious about taking on new debt in the current environment. Overall, lenders remain open, but demand for credit is muted.
Capital Spending: Equipment Still Leads
Small firms continue to invest, though activity remains below historical averages. Equipment purchases are still the most common type of capital spending, followed by vehicles and facility improvements. Looking ahead, plans for new investment remain soft, as business owners weigh costs against uncertain sales growth.
Top Concerns: Labor Quality and Taxes
When asked to identify their biggest challenges, business owners once again pointed to finding qualified workers. Taxes remain the second most frequently cited issue, followed by government regulations. Inflation concerns have eased somewhat, but higher input costs are still a nagging problem for some sectors.
Overall Optimism: A Firm Footing
Despite challenges, small business owners report feeling better about the overall health of their operations. More describe their businesses as being in good shape, and expectations for stronger sales are helping to lift spirits. While hiring plans remain modest and investment spending is restrained, Main Street sentiment is trending in the right direction.