CHERRY HILL, NJ – May 1, 2025 – Across the landscape of small businesses in the U.S., a significant majority, nearly all at 94%, are confident that their companies are financially prepared for the coming 12 to 18 months. However, a deeper examination reveals that this confidence might be misleading. Nearly three-fourths (72%) of these small business owners (SBOs) feel they could endure revenue shortfalls for only two quarters or less before becoming alarmed about their business’s future. Alarmingly, 43% claim their business would likely not survive a revenue decline lasting three to four months. This unsettling data is part of TD Bank’s inaugural Financial Preparedness Survey: Small Business Owners’ Report, which evaluates the current financial confidence of U.S. small business owners.

Andy Bregenzer, Co-Head of U.S. Commercial Banking at TD Bank, stresses the significance of financial preparedness in these uncertain times. “Now, more than ever, it is critical for business owners to be financially prepared,” he remarked. “Those who invest their time and resources into crafting a solid financial plan will find themselves better equipped to tackle challenges and seize fresh opportunities. Financial preparedness transcends mere survival; it is about enabling your business to grow with confidence, regardless of what the future may hold.”

SBOs: Don’t Get Ready, Stay Ready

Fortunately, financial preparedness appears to be at the forefront of SBOs’ concerns, with an impressive 99% of respondents evaluating their financial condition quarterly or even more frequently. Cash flow remains a vital component of this preparedness, with more than half (52%) indicating that a positive cash flow is essential for financial readiness, while 37% equate this readiness to having sufficient capital to weather potential emergencies.

In aiming to bolster their financial preparedness over the upcoming year and a half, a substantial majority (82%) of SBOs are inclined to apply for a loan or line of credit. Their key objectives for seeking this financial support encompass maintaining current operations (38%), executing essential financial technology upgrades (33%), expanding into new market verticals (33%), and ensuring timely payroll (32%). Most, around 87%, express confidence that their loan applications will be approved.

Ask the Experts

While financial guidance is clearly recognized as invaluable by business owners, only less than half (46%) are reaching out to banks or financial partners for advice. Meanwhile, 45% seek counsel from fellow small business owners, and 30% are turning to generative AI tools like ChatGPT for insights. This shift indicates a growing inclination to leverage technology for practical solutions in their business endeavors.

“Small business owners need not confront challenges in isolation. Bankers are seasoned small business experts – we have encountered myriad scenarios, and we possess the expertise to assist,” stated Bregenzer. He emphasizes that those SBOs who try to navigate these issues solo may miss out on significant advice and beneficial opportunities.

What’s the Currency of Business? Trust.

Trusted financial partners, such as TD Bank, play a crucial role in offering guidance as small businesses navigate fluctuating economic conditions. This support extends to educating business owners about various financial resources and types of funding available, such as access to SBA loans, asset-based lending, and flexible lines of credit, which are vital for both immediate operations and long-term investments. In volatile times, having access to credit enables swift responses to unforeseen challenges.

A prime example is the collaboration between attorney and real estate developers Eric Jenkins and Earle Horton, who envisioned transforming a historic building on the former Walter Reed Army Medical Center campus in Washington, D.C., into a community-focused hardware store, café, and office space. This ambitious initiative, known as Hazel’s Hardware and Café, necessitated an innovative combination of New Markets Tax Credits (NMTC) and a U.S. Small Business Administration (SBA) construction-to-permanent loan – a structure that many banks couldn’t facilitate.

“The ability of TD to synchronize multiple funding sources made what seemed like a complex project attainable. There were several instances where TD could have stepped away from this deal, yet they chose to persevere,” explains Eric Jenkins. “Unlike other banks, TD distinguished itself by having the resources necessary to provide the solutions we required. Their robust SBA team, combined with a strong New Markets Tax Credit team, was precisely what we needed.”

Moreover, banking partners serve not only as financial service providers but also as vital sources of knowledge. By comprehending the structure and dynamics of small businesses and their ongoing relationships, these banks empower owners to recognize growth opportunities and act swiftly on them.

“Despite persistent worries surrounding economic pressures, interest rates, and inflation, small business owners consistently demonstrate remarkable resilience. SBOs remain optimistic about their future success; they work diligently for it, and they deserve trustworthy banking partners who will navigate uncertainties by their side,” Bregenzer adds.

AI legalese decoder: A New Ally in Financial Preparedness

In the quest for financial clarity and legal understanding, AI legalese decoder emerges as a game-changer for SBOs. As entrepreneurs navigate complex financial documents, contracts, and legal jargon, this innovative tool helps demystify difficult language and provide plain-language explanations. By breaking down complicated legal text, AI legalese decoder enables business owners to make more informed decisions regarding loans, agreements, and financial obligations, ensuring they are not just prepared financially but legally as well.

This tool enhances SBOs’ ability to engage with financial institutions effectively, ensuring they can comprehend the terms and implications of agreements they enter into. With an improved understanding of their legal standing and potential liabilities, small business owners can better navigate the intricacies of securing funding and ultimately strengthening their businesses.

Survey Methodology

Wakefield Research conducted the Financial Preparedness Survey: Small Businesses Owners’ Report among small business owners with 100 employees or fewer and revenues of $100,000 or more annually. The survey included 250 nationwide respondents and 150 respondents from key regions, such as New York City, Boston, Washington D.C., South Florida, and Greater Philadelphia, gathered between March 7th and March 20th, 2025, through an email invitation and an online survey.

About Wakefield Research

Wakefield Research is a prominent, independent provider of quantitative, qualitative, and hybrid market research, dedicated to producing thought leadership and strategic insights. Our team partners with some of the world’s leading brands and agencies, including 50 of the Fortune 100. We conduct research across nearly 100 countries, and our findings frequently appear in top-tier media. Learn more at www.wakefieldresearch.com.

About TD Bank, America’s Most Convenient Bank®

TD Bank, known as America’s Most Convenient Bank, ranks among the top 10 largest banks in the U.S. by assets, serving over 10 million customers with diverse retail, small business, and commercial banking products and services through more than 1,100 locations across the Northeast, Mid-Atlantic, Metro D.C., the Carolinas, and Florida. Additionally, TD Auto Finance, a division of TD Bank, N.A., provides vehicle financing and dealer commercial services. TD Bank and its subsidiaries also deliver tailored private banking and wealth management services through TD Wealth®. The bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. You can also find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.

TD Bank operates as a subsidiary of The Toronto-Dominion Bank, ranked among the top 10 banks in North America. The Toronto-Dominion Bank is publicly traded on both the New York and Toronto stock exchanges under the ticker symbol “TD”. For more information, visit www.td.com/us.

Media Contact:

Oindrila Hazra
TD Bank
Corporate Communications Manager II – Commercial and Small Business Banking
[email protected]