A Shifting Economic Landscape
Small businesses across the United States are grappling with a new set of challenges in 2025. As federal tariff exemptions expire and import costs surge, entrepreneurs find themselves squeezed between rising operational expenses and tightening credit conditions.
With global trade policy shifting and inflationary pressures persisting, many startups are now turning to business loans, grants, and alternative funding channels to stay afloat. For founders in industries reliant on imported goods — such as retail, electronics, or manufacturing — the stakes have never been higher.
The End of “De Minimis” and Its Ripple Effects
What Changed?
In April 2025, the U.S. government allowed the expiration of the “de minimis” tariff exemption, which had previously allowed duty-free imports for shipments valued under $800. This move, aimed at countering low-cost Chinese imports, has had unintended consequences for American small and medium-sized businesses.
Suddenly, thousands of goods — including textiles, electronics, and accessories — now come with additional duties and regulatory burdens. For startups relying on lean supply chains and just-in-time inventory, this cost bump is disruptive.
According to the Financial Times, small businesses now face higher customs processing costs and lengthier delays at ports, contributing to tighter profit margins and stock shortages. (Read more)
Small Business Response: Cutting Costs and Seeking Capital
Tightening Budgets Isn’t Enough
As import costs rise, many small business owners are slashing discretionary spending, delaying new hires, and renegotiating supplier contracts. However, these internal adjustments aren’t always sufficient — particularly for new businesses still scaling up operations.
Increasing Demand for Startup Loans
With cash flow squeezed, entrepreneurs are increasingly applying for startup business loans to weather this new storm. Funding needs include:
- Inventory financing to cover increased import costs
- Working capital to maintain operations during slower delivery cycles
- Expansion capital to diversify suppliers or move toward local production
Startups are also turning to equipment loans, lines of credit, and SBA 7(a) loans — especially since recent SBA reforms have streamlined some loan processes while tightening eligibility. (Source)
SBA Lending in 2025: A Mixed Bag
Tighter Rules, But More Approvals
The Small Business Administration (SBA) recently reinstated stronger underwriting standards after criticism of 2023–2024 policies that were too relaxed. Lenders must now assess borrower creditworthiness more rigorously. However, despite tighter rules, loan approvals have actually increased in early 2025.
In the first 100 days of the new administration, SBA loan approvals grew by over 80%, including a 56% increase in startup loans. (GlobeNewswire)
This trend shows the federal government’s commitment to ensuring capital remains accessible — particularly for businesses responding to external economic shocks like tariffs.
Key Takeaways for Applicants:
- Ensure clean financial statements and accurate cash flow projections
- Demonstrate a clear plan for how the loan will mitigate tariff-related risks
- Consider working with SBA Preferred Lenders for faster decisions
Alternative Financing Options for 2025
Not all startups qualify for traditional loans, especially in early stages or with limited collateral. Fortunately, a wide range of grant programs and alternative platforms can help.
Notable Grant and Relief Programs:
- Amazon Business Small Business Grants – $250,000+ in awards for innovative startups
- USDA Rural Business Programs – Tailored to agricultural entrepreneurs and rural ventures
- MBDA Capital Readiness Program – Focused on helping minority-owned businesses scale (U.S. Chamber of Commerce)
Peer-Based Lending and Fintech Tools
Fintech platforms like SoLo Funds and Kiva offer alternative lending opportunities without the bureaucratic red tape. While loan sizes are typically smaller, these tools can be a lifeline for businesses needing short-term liquidity or operational funding. (Learn more)
How Entrepreneurs Can Prepare
To boost funding success and stay resilient in a tariff-heavy economy, small businesses should:
1. Review and Localize Supply Chains
- Audit your current vendors and imports
- Explore regional sourcing or domestic production to offset tariff burdens
- Negotiate longer-term contracts to lock in pricing
2. Reevaluate Your Business Model
- Consider new pricing strategies to pass on costs without losing customers
- Diversify your product range to include low-tariff or local items
- Identify digital services or products that are tariff-proof
3. Enhance Your Financial Profile
- Track key metrics like gross margin, turnover ratio, and burn rate
- Separate personal and business finances
- Work with a loan advisor to strengthen your credit profile
The Road Ahead
While 2025 presents significant hurdles for small business founders, it’s also a year of opportunity. Savvy entrepreneurs who can adapt to changing trade policies, explore multiple funding channels, and maintain strong financial discipline will emerge more competitive.
As federal and economic policies continue to evolve, staying informed and agile will be critical. Whether you’re a first-time business owner or scaling a growing venture, now is the time to secure the financial resources you need to thrive.
Take the Next Step with BoomerBiz Loans
Ready to elevate your entrepreneurial journey? BoomerBiz Loans specializes in supporting baby boomer business acquisitions, offering a streamlined 3-step loan application process for fast approvals within 24–48 hours.
With competitive low-interest rates, flexible terms, and loans up to $10M, we’re here to assist both first-time buyers and experienced business owners.
Don’t let funding be a hurdle to your success. Start Your Loan Application today and join the ranks of successful entrepreneurs who’ve experienced the BoomerBiz advantage.
0
20
20
20