Mainebiz

P reserving the American dream is a mission that runs deep for today's entrepreneurs. They continue to prioritize their customers, while at the same time, they are combating inflation and rising costs. To achieve this, many are absorbing rising costs with their own paychecks rather than passing them onto customers. It's a true testament to the important role customer loyalty plays. Over the last few years, KeyBank has conducted a Small Business survey to help us better understand the adversities and opportunities small business owners across the country are faced with. Findings from this year's Small Business Survey prove the desire to protect customer loyalty runs deep. One-third (33%) of owners are absorbing rising costs with their own paychecks, rather than passing them on to customers. This strategic decision to temporarily adjust their own pay as a strategy to preserve customer loyalty underscores the value they place on the relationships they've built. It also reflects a yearning to hold onto the American dream, as 88% of owners say they are just as motivated by the original dream that started their business. This year's survey was conducted amongst 1,500 small business owners across the country, aged 18-99, who own or operate a small-to-medium- sized business and have an annual gross revenue of less than $10 million. Turning obstacles into opportunity Although inflation and rising costs remain a dominant threat for the second-year running, cited by 53% of owners (up from 50% in 2025), the men and women behind these small businesses are continuing to rebuild their financial position with 23% strengthening cash reserves and 26% paying down debt this year. More than half (54%) of owners are certain they could fund one month of operating expenses from cash reserves alone—up from 33% in 2024. What's most encouraging is that fewer owners are in survival mode compared to last year (17%, down from 23% in 2025) and 28% are actively investing for long-term growth, an increase from 2025 (22%). Another win coming from this survey: almost every small business owner said they've had a tangible accomplishment this year, with 94% of owners reporting they scored at least one win this year, 79% saying two or more, and nearly two-thirds (62%) stating three or more in the past year. Supporting the dream behind every small business At KeyBank, we see these small business owners as the backbone to our economy. In fact, we've come to know many of them and find it our personal mission to help accelerate their dreams and preserve their legacies. Nearly half (46%) of small business owners define success as achieving financial security, while 34% shared building something to pass down to family as a top priority. Providing clients with the resources, insights, and financial expertise they need to navigate changes and uphold their legacies is paramount to our team. Though inflation and rising costs continue to challenge small businesses, this year's survey highlights the strength of customer loyalty and the resilience of business owners. To help guide small businesses into their next chapter, here are three strategies that promote long- term success and help maintain the dream: 1. Prioritize cash flow Economic factors such as inflation and rising costs may be outside your control, but maintaining visibility into your cash flow isn't. To help stay on track and in the know, it's important to regularly review expenses, identify areas to improve efficiency, and work toward building cash reserves to prepare for possible periods of uncertainty. Understanding your finances and taking small, consistent steps can strengthen your financial foundation and create greater flexibility for future opportunities. 2. Invest in relationships The survey shows that small business owners are willing to make short- term personal sacrifices to preserve customer loyalty. By continuing to communicate openly with customers, delivering consistent value, and looking for ways to enhance their experience, you're building strong relationships that ultimately can sustain hard times. Strong customer relationships not only help retain revenue during challenging times but can also generate referrals and long- term growth. 3. Balance for growth While it's important to navigate current economic pressures, don't lose sight of the vision that inspired you to start your business. Whether that means investing in new products, adopting technology that improves efficiency, or developing a succession plan, small investments in the future can help preserve your legacy and position your business for long-term success. For additional insights and resources to help your business, visit Key.com or connect with your local business banking advisor at a KeyBank branch near you. S P O N S O R E D C O N T E N T © 2 0 2 6 K E Y C O R P ® . A L L R I G H T S R E S E R V E D . K E Y B A N K M E M B E R F D I C . C F M A : 2 6 1 0 0 6 - 5 0 7 9 8 2 8 About the author: Mark Williams is New England Business Banking Market Leader for KeyBank. He can be reached at Mark_X_Williams@keybank.com. What's most encouraging is that fewer owners are in survival mode compared to last year (17%, down from 23% in 2025) and 28% are actively investing for long-term growth, an increase from 2025 (22%). 888-KEY4BIZ ® (539-4249) key.com/small-business/index.html Keypoints: • 33% of small business owners are taking a personal pay cut rather than raising prices for customers, yet 23% strengthened cash reserves and 26% paid down debt this year. • 88% of owners remain just as motivated by the dream that started their business. • Fewer owners are in survival mode this year (17%, down from 23% in 2025), with 28% actively planning for long-term growth. The Backbone of the Economy, The Heart of Our Mission

• Cover