Main Street Monday: Small Business Preserving Cash, Wary of Borrowing for Expansion,  Profits Stable, Managing Gas Price Increases  

May 11, 2026

Bob Coleman
Founder & Publisher

Main Street Monday: Small Business Preserving Cash, Wary of Borrowing for Expansion,  Profits Stable, Managing Gas Price Increases  

Small business owners are paying more for nearly everything that moves.

The April 2026 Bank of America Institute Small Business Checkpoint shows gasoline spending per small business client surged 23% year over year in March. Higher fuel costs are now flowing directly into freight, fertilizer, and inventory expenses across Main Street.

The impact is hitting agriculture and transportation businesses especially hard. Small wholesalers are also facing sharp inventory inflation, with inventory costs rising by more than 60% year over year amid ongoing tariff pressures, according to Bank of America payments data.

Tariffs remain a major issue for small business operators. Higher import costs are adding pressure on wholesalers already facing elevated transportation and supply chain expenses. Inventory-heavy businesses continue to absorb higher carrying costs while attempting to protect margins in a slower growth environment.

Bank of America reports that small business profitability growth remained positive in the first quarter of 2026, rising 0.3% year over year. While slower than the first quarter of 2025, profitability improved from the fourth quarter of 2025.

Here are five key balance sheet and credit trends from the report:

• Small business profitability remained positive in Q1 2026, with 0.3% year over year growth according to Bank of America internal data.

• NFIB survey data showed cautious optimism on revenue expectations, though March marked the first decline after four straight months of improvement.

• Bank of America small business credit card utilization rates sit only slightly above the 2019 average, signaling no major level of credit stress at this point.

• Small business owners are preserving liquidity instead of expanding. The percentage planning capital expenditures over the next six months fell in March to the lowest level since November 2009, according to the NFIB.

• More small businesses are avoiding external financing than at any point in the twenty-year history of the National Small Business Association Economic Outlook survey, signaling slower anticipated growth and softer business formation activity.

The report points to a small business economy that remains financially stable but increasingly cautious. Rising operating costs, tariff pressure, and slower expansion plans are shaping Main Street decision-making as businesses focus on protecting cash and managing expenses.