Explore the latest market intelligence and proprietary data on how U.S. small and middle market businesses are navigating a shifting economic landscape. The Q3 2026 BusinessPulse reveals middle market companies posting their strongest financial gains of the year, while small businesses continue investing in their future and turning more often to credit to fund what’s next. Dive into the findings to see how confident leaders are positioning themselves for growth and what it means for the months ahead.
BusinessPulse
Q3 Insight and Analysis of Small Business Sentiment and Economic Trends
BusinessPulse Recap
Q3 BusinessPulse Key Takeaways
Investment and Credit Access Hold Steady
Even with softer conditions, small businesses kept increasing capital expenditures, up 3 points QoQ and 4 points YoY, and credit approval rates stayed strong across both segments, 81% for small business and 96% for middle market. This points to businesses continuing to invest and access financing despite the headwinds.
Rising Costs Remain the Top Concern
The cost of doing business is still the leading concern for both segments, cited by 76% of small businesses and 75% of middle market companies. Concern over fuel prices actually eased this quarter for both groups, showing that not all cost pressures are moving in the same direction.
Middle Market Momentum Builds
Middle market companies posted their first improvement in overall financial condition all year, with net difference climbing to +19%, up 9 points from last quarter. Stronger sales are driving the gain, and companies remain confident heading into the next 12 months.
Business Owners Speak: Q3 Survey Insights
Curious how your company stacks up against national trends? We break down the key findings from our latest quarterly survey, covering everything from shifting business confidence and cash reserve pressures to the top concerns facing small business and middle market owners.
- Financial conditions and confidence for the year ahead
- Credit demand, borrowing trends and growth plans
- Cash reserve challenges and capital investment activity
- Business owners’ top concerns, from rising costs to slowing demand
- How we’re supporting business owners as they navigate what’s next
From our Resource Center
As part of our commitment to supporting small business owners, we have a library of free educational resources available to anyone. Here’s what you can expect to find in Live Oak Bank’s Resource Center:
- Loan product overviews
- Marketing tips and tricks
- Small business fundamentals
- Live Oak customer spotlights
About Barlow Research
Barlow Research surveys more than 2,800 companies annually across the U.S. to gather current viewpoints and draws on years of data to provide in-depth research on economic trends to the commercial banking sector. Barlow has a long-standing relationship with Live Oak Bank, primarily through powering the BusinessPulse. In addition, Barlow Research has provided industry analysis for vertical selection, competitive intelligence on the digital account opening and lending processes. Live Oak Bank is also a member of Barlow Research’s flagship Small Business Banking program.