Being a small business owner has never been easy. But with whipsaw tariff announcements from the Trump administration, a red-hot market for small business acquisitions, and major changes in Small Business Administration (SBA) lending rules, 2025 isn’t business as usual.
On May 28, Forbes hosted “How To Succeed As A Small Business Owner In 2025,” an hour-long panel discussion featuring Kristin Bear, owner of lingerie brand Kilo Brava; Rand Larsen, CEO of Scalepath, a members-only community for small business owners; and Ray Drew, managing director for SBA loans at Truliant Federal Credit Union. The talk covered the impact of tariffs, trends in buying and selling businesses, including the anticipated “Silver Tsunami” of Baby Boomers retiring, and recent SBA lending rule changes.
(Forbes members can access a recording of the conversation here.)
Here’s what the panelists had to say about each of these topics.
Kristin Bear talked about how tariffs have hit her apparel business hard. With combined tariffs around 51% (at least for now), she explained that costs will inevitably trickle down to consumers. Small retailers are understandably cautious about stocking inventory that might suddenly become even more expensive. To cope, Bear is focusing more on private-label projects, giving her business some breathing room amid all the uncertainty.
Rand Larsen shared that manufacturing businesses in his peer groups are mostly wrestling with supply chain headaches and delays. Companies are trying to stay flexible by stretching out payment terms, tweaking product designs, or grabbing smaller deals they would have overlooked before, just to keep money flowing. Still, Larsen said that despite all the ups and downs, manufacturers based in the U.S. remain generally upbeat about the future.
From the lending side, Ray Drew explained that tariffs create a tough environment for evaluating business loans. Unpredictability makes it hard to measure risk, particularly when buying businesses heavily impacted by tariffs. Still, Drew pointed out that the acquisition market remains lively because plenty of buyers are eager to strike deals.
The panel also covered recent shifts in SBA lending guidelines, aimed partly at addressing rising loan defaults. These updates include lower limits on small loans, tighter conditions on sellers staying involved after a sale, and new restrictions against refinancing certain high-interest loans like merchant cash advances. Drew framed these adjustments as a move back toward more conservative lending, which, while perhaps appropriate, might slow some business transactions.
In the face of these hurdles, the panelists agreed that small business owners need resilience and flexibility to handle today’s unpredictable business climate. Those who can quickly adjust, watch their cash flow carefully, and stay ready for change are most likely to come out ahead.
The full discussion provides insights and strategies for small business success in the shifting landscape of 2025.
Read the full article here
