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Small Businesses Look Ahead, but Financial Readiness Varies

Small businesses are anticipating growth but are slightly less focused on their financial picture, according to the 2026 TD Financial Preparedness Survey of Small Business Owners. Nearly all small business owners (94%) stated they are financially prepared for the next 12-18 months, according to the second Financial Preparedness Survey of Small Business Owners, which polled 1,000 U.S. owners of businesses with 100 or fewer employees. However, just 24% of respondents actually have more than six months' worth of expenses in emergency savings — even though 34% say that level of savings defines true financial preparedness.

The financial picture underscores a continued need for guidance as well as capital

Despite their financial confidence, slightly fewer business owners are routinely checking their accounts versus 2025. Most owners monitor their financial preparedness at least monthly (64%), down from 70% last year.

Woman sitting at a desk in front of a computer

Working capital is critical to both short- and long-term stability for small businesses, giving owners the flexibility they need to adjust and adapt as the landscape changes. But our survey data shows that while financial preparedness is top of mind for small business owners, it is not reflective of their true financial state. Our advice to small business clients is to ensure they are building financial resilience, as it is not just about business survival but also about positioning your business to grow with confidence no matter what the future holds.

Andy Bregenzer

Head of Regional and Small Business Banking and Co-Head of Commercial Banking, TD Bank U.S.

Top 3 challenges to financial preparedness:

43%

42%

40%

Circle graph that's green and black showcasing 42%

Circle graph that's green and black showcasing 43%

Circle graph that's green and black showcasing 40%

TD Financial Preparedness Survey: Small Business Owners’ Report 2026

Anticipating and adapting to customer preferences

Complexity of digital tools to track business’ finances

Finding advice from a trusted financial partner

Using finance to level up

Small businesses are still eyeing growth. The survey finds that 96% say financing would be necessary or potentially necessary to “level up” their business and 93% of respondents are likely to consider applying for a loan or line of credit in the next 12 to 18 months, up from 82% last year. The percentage of owners who are considering hiring a financial advisor to improve their business outlook in the next 12-18 months rose to 53%, up from 27% in 2025.

Loan or line of credit interest in 2026

Loan or line of credit interest in 2025

93%

82%

Chris Ward

Head of Small Business Banking, TD Bank U.S.

These findings reflect what we are hearing from small business owners every day. They are looking to grow, and are seeking credit as a way to fund more than just day-to-day operations — they are looking to invest in modernization, adopt AI and strengthen fraud defenses.

AI adoption is accelerating as a support tool, not a job replacer

AI usage has surged, with 69% of owners already using AI to reduce expenses, a sharp increase from 39% last year. Six in 10 owners expect AI adoption to increase their workforce over time.

Top benefits of AI

Hover over each image to reveal more information.

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53%

47%

42%

Drive sales

Strengthen fraud & cybersecurity protection

Improving customer service

Risk awareness is high, especially around fraud and cost pressures

More than half of businesses experienced fraud or attempted fraud in the past year. This reinforces the importance of preventative tools, employee training and trusted banking support.

What might hurt financial preparedness this year?

Cybersecurity or fraud incident

High input costs

Additional survey highlights

Long-term planning gaps remain: Succession planning continues to lag. Only 42% currently have a succession plan, suggesting a long-term preparedness gap despite near-term confidence. Optimism about the economy is translating into hiring and investment: Three-quarters of owners (74%) expect the macroeconomic environment to improve, and 91% expect their business to be profitable. As a result, 71% anticipate workforce growth, driven by retention and upskilling. Economic indicators are increasingly informing owner decision-making and confidence: Economic data such as inflation, interest rates and GDP are influencing decision-making for 97% of small business owners, with nearly half (46%) saying it helps them plan and act with confidence.

Small business owners are some of the most optimistic and resilient people we know, and across New England they’re planning for growth. Our research shows that confidence goes hand‑in‑hand with preparation. At TD, we work alongside small business owners to help them plan, manage uncertainty, and build financial foundations that support both today’s needs and long‑term goals.

Sheryl McQuade

Regional President, Metro New England

Sheryl McQuade (woman with long, dark hair and green suit)

The New York metro area is a cornerstone of the country's small business activity, with deep diversity and an entrepreneurial drive that inspires us. While many small business owners are optimistic, we understand their current financial position can be challenging. Our research and insights highlight an opportunity to help them further strengthen their long-term preparedness through advice and tailored solutions. TD is committed to helping businesses build the financial resilience needed to support continued growth in an ever-evolving market.

Ralph Bumbaca

Regional President, Metro New York

Small business owners across the Mid‑Atlantic bring grit, ingenuity and a constant drive to keep moving forward. Our survey shows many are paying close attention to economic indicators like inflation and interest rates, using that information to guide financial and investment decisions. TD helps businesses translate those signals into practical steps, bringing clarity to planning and confidence to the decisions that shape growth.

Rob Curley III

Regional President, Mid Atlantic

Rob Curley (man with short dark hair and a suit with teal tie)

Across the Southeast Metro, small businesses are taking a proactive, forward-looking approach to growth, increasingly turning to digital tools and technology, more so than the national average, to better manage their finances and plan for what’s ahead. That mindset reflects a broader shift toward more informed, data-driven and AI-enabled decision-making, as businesses embrace the growing impact of AI and technology to operate more efficiently and compete in a rapidly evolving environment. With the right financial tools and guidance in place, that momentum can translate into meaningful, long-term growth.

Nick Miceli

Regional President, Southeast Metro

Small Business Month Central: Resources

Survey Methodology

The TD Financial Preparedness Survey of Small Business Owners 2026 was conducted by Wakefield Research among 1,000 U.S. small business owners with 100 employees or fewer and annual revenues of at least $100,000. The survey was fielded March 13–26, 2026, and included respondents nationwide as well as targeted samples from New York City, Boston, Washington, D.C., South Florida, Greater Philadelphia and Charlotte. Results reflect the opinions and experiences of surveyed business owners and are subject to customary sampling variation. We hope you found this helpful. This article is for informational purposes only and is based on information available as of April 2026 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. All rights reserved. ©2026, TD Bank, N.A and/or its affiliates. All rights reserved. The TD logo and other TD trademarks are owned by The Toronto-Dominion Bank or its affiliates and are used under license.

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PDF of Full Survey

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How business owners define "leveling up"

Loans and lines of credit are expected to support not only growth, but also modernization efforts such as AI adoption, cybersecurity investments and operational upgrades.

54%

47%

45%

Growth and market expansion

Stronger operations, systems and processes

Improved financial performance

Survey Press Release

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