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S mall business owners are no strang- ers to adversity. Most recently, they've been faced with rising costs, policy uncertainty, and shifting consumer expectations. Yet, what continues to stand out is their grit—their ability to adapt, pivot, and persevere. Each year KeyBank conducts a Small Busi- ness Survey to gain insight on how we can better serve our clients. Our latest survey, which included 2,144 small business owners with an annual revenue of $10 million or less, revealed that nearly one in four small business owners are operating in survival mode. But that's only part of the story. Despite these challenges, most owners feel they are able to continue to cautiously plan ahead (40%) or invest in long-term growth (22%), pointing to the adaptability and determination of the small business owners that carry our communities. Across the country, small business owners are rewriting the rules of financial success Half (50%) of small business owners reported factors like inflation and rising costs have forced many owners to make tough deci- sions like cutting expenses in other areas (16%), absorbing costs to stay competitive (14%), and shifting their suppliers (11%), highlighting their ability to evolve in order to succeed. But they're not just reacting; they're strategizing. Though a quarter (25%) of small business owners will likely increase prices for customers as a result of recent tariffs and rising costs, nearly half of respondents said they could cover one month of operating expenses in an emergency, a true testament to their financial discipline and foresight. Policy uncertainty looms large, with 72% ex- pressing concern about federal legislation's impact on their operations. Yet, 80% feel confident in their ability to make informed decisions. That's the kind of mindset that builds resilience—not just for today, but for the future. Resilience also means taking care of oneself. Thirty percent of business owners say they feel more resilient with adequate sleep. These insights remind us that resilience is both personal and professional. Fostering resilience and helping business owners take action At Key, we believe resilience is more than weathering the storm. It's about building a foundation for growth. Resources like our Certified Cash Flow Advisor Program, allow us to deliver differentiated solutions and advice to small business owners, help- ing them optimize operations and plan for what's next. With 21% reporting regular conversations with their business banker make them feel more secure. The message is clear. As business bankers, we must remain committed to supporting our clients through this transformation with tools, advice, and resources that allow them to thrive—not just survive—in today's economy. Coming out of this survey, there are three key tips to help small business owners navigate these challenges and position their business for success: 1. Stay Informed and Proactive Monitor economic trends and industry-spe- cific challenges by staying connected with local and national business associations. Conduct regular financial reviews to iden- tify areas for cost reduction and efficiency improvements, ensuring you are always making informed decisions. 2. Optimize Business Operations Streamline business processes by automating tasks and outsourcing non-core activities. Di- versify revenue streams through new products, services, or online sales channels. Regularly negotiate with suppliers to secure better terms and build flexible, cost-effective relationships. 3. Build a Strong Support Network Leverage the expertise of business bankers and other financial professionals for tailored advice and solutions. Engage with the lo- cal business community through events and networking groups to build a support network that can provide resources and potential collaborations. As we look ahead to 2026, I'm inspired by the determination of our small business owner clients. Their ability to adapt, evolve, and lead through uncertainty is what drives our economy forward. We at Key couldn't be more honored to support our clients on this journey, as we work to ensure they have access to the resources, insights, and advice needed to navigate whatever comes their way. For additional insights and resources to help your business, visit KeyBank Small Business or connect with your local business banking advisors at a KeyBank branch near you. S P O N S O R E D C O N T E N T Resilience in action: How small business owners are navigating 2025's economic crosswinds THIS MATERIAL IS PRESENTED FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS INDIVIDUAL TAX OR FINANCIAL ADVICE. KEYBANK DOES NOT PROVIDE LEGAL ADVICE. ALL CREDIT PRODUCTS AND SBA LOANS ARE SUBJECT TO COLLATERAL AND/OR CREDIT APPROVAL, TERMS, CONDITIONS, AVAILABILITY AND SUBJECT TO CHANGE. KEYBANK MEMBER FDIC. ©2025 KEYCORP. CFMA #251003-3574678 About the author: Allison Standish Plimpton is New England Regional Business Banking Leader at KeyBank. She can be reached at allison_ standish_plimpton@keybank.com. ©2025 KeyCorp. All rights reserved. KeyBank Member FDIC 240715-2688603-1295409910 small businesses. big commitment. Small businesses are the engines that drive economic growth and help communities thrive. That's why KeyBank works hard to meet their needs and help them succeed. By Allison Standish-Plimpton, New England Business Banking Leader, KeyBank There are three key tips to help small business owners navigate these challenges and position their business for success

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