AGP Executive Report

AI and Small Business: A Bluehost survey found 53% of entrepreneurs use AI website builders instead of hiring developers, saving an average of $850 and 32 hours. Freelance website-design listings have also dropped sharply, pointing to a changing market for routine web work. Disaster Relief: Low-interest SBA loans are available to Indiana businesses and residents in eligible counties hit by June storms and flooding. Creator Businesses: New SBA guidelines recognize content creators as small businesses, potentially opening access to loans, grants and other support. Rural Funding: More than $1 million in federal funding is headed to rural Wisconsin businesses.

Small Business Access: The SBA now officially classifies content creators as small businesses, a move expected to make it easier for them to seek loans, grants and other support. Disaster Relief: Low-interest SBA loans are available to Indiana businesses affected by June’s severe storms, while separate aid is opening for Colorado fire recovery and Wisconsin storm victims. Federal Contracting: The State Department awarded facial-recognition firm Paravision a small-business set-aside contract worth up to $6.5 million, with $1.3 million initially committed. Innovation Funding: Democratic lawmakers say a proposed SBA rule could temporarily block successful firms from applying to SBIR and STTR research programs if they fall short of new commercialization standards. AI Skills: A free Oct. 22 Mississippi workshop will help small businesses explore practical ways to use AI in planning, hiring and marketing. Financing Rules: California has expanded its financing law to cover small-business commercial financing, changing the rules for providers in the state.

Creator Businesses: The SBA has formally classified digital creators as small businesses under the motion picture and video industries code, making it easier for creators to seek loans, grants and other support. Innovation Funding: Democratic lawmakers are challenging a proposed SBA rule they say could bar successful small firms from applying to SBIR and STTR programs if they fall short of new commercialization standards. Disaster Relief: West Virginia is offering disaster unemployment assistance to eligible workers and self-employed people, including farmers, affected by August flooding; the deadline to apply is Dec. 7. SBA and FEMA staff are also helping Wisconsin tornado victims navigate recovery programs. Rural Growth: Wisconsin organizations will receive more than $1 million in federal grants for business training, expansion and efforts to fill vacant storefronts. Faster Lending: Georgia’s Colony Bank says generative AI cut its SBA loan process from 92 steps to 32, bringing approvals to about seven business days for responsive applicants.

SBA Access: New guidance recognizes qualifying content creators as small businesses, potentially opening federal lending and contracting programs to creator-led ventures. Disaster Relief: Low-interest SBA loans are available to Wisconsin businesses hit by July storms and Indiana businesses affected by June severe weather. Rural Energy: New USDA rules taking effect today make solar projects ineligible for Rural Energy for America Program funding, removing a source of support for rural businesses seeking to cut energy costs. Cybersecurity: More than half of U.S. small businesses have faced cyberattacks, while many lag in adopting protection as threats grow. Business Formation: More than 560,000 businesses were formed in September, a record for the month; year-to-date filings are up 16% from last year. Hiring: Younger small-business owners are more likely than older peers to plan staff increases, though overall hiring plans have cooled.

Access to Capital: Senators Markey and Warren urged bank regulators to reject a proposed Community Reinvestment Act rule, warning it could curb funding for community lenders that financed 109,000 businesses with $2.3 billion in 2024. Disaster Recovery: The SBA is offering recovery loans to businesses hit by Super Typhoon Bavi in Guam and flash flooding near the Grand Canyon; Bavi applications are due Dec. 7. Local Investment: Delaware launched a $4.5 million grant program to help small businesses improve properties and commercial corridors, as officials nominated 13 county census tracts for federal Opportunity Zones. Cybersecurity: More than half of U.S. small businesses face cyberattacks, experts warn, as federal officials investigate China-linked intrusions targeting critical infrastructure. Business Pressures: Memphis brewery Crosstown Brewing will close after nearly a decade, citing inflation, weaker sales and changing drinking habits.

Cybersecurity: 56% of U.S. small businesses faced at least one cyberattack in the past year, with AI helping criminals automate attacks and impersonate staff or vendors. Costs and Confidence: September inflation reached 3.7% year over year, while the NFIB optimism index slipped to 97.9. Owners cited labor shortages and rising input costs, and a separate survey flagged weak sales as a growing concern. AI Adoption: 53% of small and midsize businesses say they use AI to do work once handled by at least one employee, even as many owners remain wary of trusting it with payroll. Access to Capital: SBG Funding says it has provided more than $3 billion to 28,000 U.S. small businesses; its lending reached $867 million in the first nine months of 2026. Coastal Community Bank also pledged $5 million to support small-business growth. Disaster Support: SBA assistance centers opened on the Pine Ridge Reservation, and disaster loans are available to Wisconsin businesses affected by drought.

AI and Hiring: A Bluevine survey of more than 700 U.S. small-business owners found 53% say AI or automation lets their teams handle the work of at least one extra employee. Three-quarters plan to shift a business function to software rather than hire in the next year, though many owners say lean staffing costs them personal time. Costs: September inflation reached 3.7% year over year, adding pressure for businesses already facing higher expenses. Access to Capital: Coastal Community Bank is investing $5 million in an SBA loan fund to expand 7(a) financing, including for businesses that may not qualify for traditional loans. SBA Rules: The agency’s proposed size-standard changes could affect small-business eligibility for federal contracts and programs. Comments on the proposed thresholds and methodology are due Nov. 20. Disaster Aid: SBA assistance centers on South Dakota’s Pine Ridge Reservation are helping storm-affected businesses and nonprofits access recovery programs, including low-interest loans.

Prices and Costs: U.S. inflation climbed to 3.7% in September from a year earlier, with prices up 0.6% month to month. Higher fuel costs add pressure for small businesses already managing tight operating budgets. Disaster Relief: The SBA is offering Wisconsin businesses hit by drought working-capital loans of up to $2 million, with rates as low as 4% and applications open through May 17, 2027. Manufacturing Support: California’s new Made in California program aims to help local manufacturers find customers, contracts and export markets; the state also announced $10.4 million for Central Valley manufacturing and workforce projects. Defense Suppliers: The Pentagon and SBA signed an agreement to expand capital access for small manufacturers in the defense industrial base. Access to Capital: Stewards and payments firm Rain plan a business card that would let qualified small businesses draw on approved financing as needed; the companies say details and availability are still to come.

Business Conditions: U.S. small-business uncertainty rose in September, with inflation the top concern for 20% of owners. Just 7% said it was a good time to expand, as interest rates, energy costs and hiring challenges weigh on plans. Defense Contracts: The Navy is seeking contractors for a $15 billion Puget Sound shipyard upgrade and says local and regional small businesses should review the opportunity. Capital Access: A new SBA–Defense Department agreement aims to connect small defense suppliers and manufacturers with financing to expand production, including through SBA-backed loans. Rural Support: Eleven Wisconsin organizations will share $1 million in USDA grants for rural business development. Walhalla businesses affected by a September fire can also apply for SBA disaster loans.

Rural Business Support: USDA is investing $1.024 million in 11 Wisconsin projects for business training, technical assistance and job creation, including support for entrepreneurs with disabilities and tribal communities. Disaster Aid: Walhalla businesses hit by September’s Main Street fire can apply for low-interest SBA economic injury loans; applications are due July 9, 2027. Pricing Pressures: NFIB’s September survey found 31% of small-business owners plan to raise prices in the next three months, up from 28% in August. Access to Capital: SBA rules now exclude businesses from 7(a) and 504 loans if any owner is not a U.S. citizen or national, including lawful permanent residents—while added ownership checks may also slow applications for businesses that still qualify. Free Guidance: Small Business Development Centers offer no-cost help with cash flow, AI and manufacturing, with Georgia’s network operating 17 centers statewide.

Federal Contracting: The SBA proposes raising small-business size limits across 338 industries, potentially bringing larger firms into set-aside competitions. Comments are due Nov. 20. Small-Business Bills: Kansas Sen. Roger Marshall paid a bakery $678.75 invoice from his 2020 campaign—twice the amount—after the owner’s account went viral. Community Lending: Advocates warn a proposed rollback of Community Reinvestment Act rules could weaken banks’ incentives to lend in lower-income neighborhoods and small towns. Disaster Recovery: Colorado is seeking SBA low-interest loans for businesses hit by wildfires and flooding; the request is pending, and loans would require repayment. AI Readiness: New research finds small businesses are adopting AI faster than they can establish rules to manage it. Business Pressures: U.S. bankruptcy filings rose 11% in the first nine months of 2026, while high diesel costs are squeezing restaurants.

Cybersecurity: New NIST draft guidance urges small firms—especially solo owners—to treat cybersecurity as a business risk, not just an IT problem. Nearly 82% of U.S. small businesses have no employees beyond the owner. AI Governance: Two-thirds of AI-using small businesses surveyed by Pax8 have built AI tools now in regular use, but 35% found AI running without approval in the past six months. Rural Business Grants: Iowa meat processors and custom lockers can apply for state grants of up to $20,000 for equipment to expand processing capacity; $105,000 is available for the program in fiscal 2027. Bankruptcy Pressure: U.S. business bankruptcy filings rose 7% in the first nine months of 2026, while small-business Subchapter V filings jumped 46% to 2,442, amid higher borrowing costs and rising expenses.

Disaster Aid: Florida activated $10 million in short-term, zero-interest emergency loans for businesses hit by Hurricane Isaias, alongside rapid road repairs across the Panhandle. Small-Business Accountability: Kansas Sen. Roger Marshall paid a Hutchinson bakery $1,300 after its owner said his campaign had left a $678.75 order unpaid since 2020. Health Costs: Colorado small employers face an average 14% increase in health insurance premiums for 2027, with rates on the Western Slope rising 14.6%. Access to Capital: An Illinois Small Business Development Center will host a lenders forum and financing workshop on Oct. 22 to connect owners with loan programs and help them prepare to approach lenders. Operating Costs: Record October gas prices and diesel costs near $6.50 a gallon are squeezing businesses that depend on deliveries and trucking.

Entrepreneurship: A Texas couple’s seasonal porch-decorating business is charging $200 to $2,000 per makeover, turning a local gap in the market into a thriving family venture. Federal Support: The SBA has opened nominations for its 2027 National Small Business Week awards; entries are due Dec. 7. Disaster Recovery: Colorado is seeking SBA disaster loans for residents and businesses hit by the Aspen Acres and Gold Mountain fires. Rising Costs: Kansas City trucking firms are under pressure as Midwest diesel prices nearly doubled from January; a Baton Rouge food truck plans to close, citing soaring fuel and food costs. Local Opportunities: Seattle-Tacoma Airport’s 30,700-square-foot duty-free expansion includes a joint venture with four local small businesses.

SBA Awards: Nominations are open for the 2027 National Small Business Week awards, with entries due Dec. 7; the celebration runs May 2–8. Disaster Relief: Colorado is seeking SBA loans for businesses and residents hit by the Aspen Acres and Gold Mountain fires and related flooding. Fraud Enforcement: Ohio says 27,486 pandemic-loan borrowers are suspended over suspected fraud involving about $1.1 billion. Separately, a California businessman received 42 months in prison for a $14 million PPP fraud scheme. Health Costs: Minnesota insurers have proposed 2027 small-business plan increases of 10.6% to 21.4%, potentially affecting 184,000 people. Lower Bills: A free Ohio solar co-op is helping small businesses and nonprofits seek group-buying discounts, with a typical 5-kilowatt system estimated to save about $1,000 a year on electricity. Entrepreneur Support: Latino nonprofits are opening shops that give local entrepreneurs retail space, advice and connections to customers.

Digital Dependence: A Meta suspension temporarily wiped out a lingerie brand’s Instagram account, which its owner said was a key source of sales. The account was restored, but the episode highlights the risk small businesses face when platform access disappears. Health Costs: Minnesota insurers have proposed small-group premium increases of up to 21.4% for 2027, pending state review. Main Street Investment: Virginia is awarding $615,000 in grants for 22 downtown projects, including improvements intended to support local businesses. Capital Access: Michigan’s CDFI Coalition secured a $10 million loan for small businesses, affordable housing and community spaces; the SBA also announced nearly $5 million for new centers serving veteran entrepreneurs. Disaster Relief: Oregon businesses affected by wildfires and drought can apply for up to $2 million in federal disaster loans.