-by Jaya Pathak
Tariffs, tighter credit, and moving targets on SBA rules have created a perfect storm. For business owners, uncertainty isn’t just a headline anymore; it is a tangible risk sitting on your balance sheet. The companies that survive 2026 will be the ones that handle policy shifts just like any other input cost—with calculation, pricing strategy, and disciplined financing.
Tariffs: Treat Them as a Cash Flow Problem
Most people focus on the price hike tariffs bring, but the real killer is often the timing gap. You pay the duty at the port, then wait months to recover that cash through sales. That lag stretches your cash cycle exactly when banks are getting picky.
To handle this, map out a “tariff waterfall” for your key products: start with the landed cost, add the tariff, figure out what price the market will bear, and see what happens to your margin. As CNBC reported, this gets scary fast—one business saw expected tariff costs jump from roughly $68,000 to $380,000 in a single year. That is a big enough hit to wreck cash flow and force you to delay payments to suppliers if you aren’t ready.
Forget generic advice like “diversify suppliers.” Try these four tactical moves instead:
1) Fix your payment terms: Negotiating incoterms or pushing a supplier from prepay to net-30 often saves more liquid cash than a small price discount.
2) Build it into the price structure: Add a specific tariff surcharge line for B2B clients, or put a time limit on your quotes. This way, a policy shift doesn’t force you to renegotiate the entire contract.
3) Change the mix: Push services, warranties, or subscriptions. High-margin, non-physical extras help dilute the impact of tariffs on your hard goods.
4) Tight Lending: Do the Bank’s Homework for Them Credit isn’t just “tight” in the abstract. Banks are tightening the screws on specific things like collateral and risk premiums. The Fed’s own surveys show banks are demanding more security and charging more for perceived risk, often using interest rate floors to protect themselves.
How can you manage tariff related challenges?
- You can negotiate with your suppliers and have open discussion to share the burden of increased cost.
- You can also explore alternative markets and identify newer opportunities where tariffs do not apply.
- You can also review your supply chain and consider sourcing materials from either domestic or tariff exempt suppliers.
The New SBA Rules
As per the latest rule, the businesses on multiple award contracts that is those who are availing government deals reserved only for small businesses, if these businesses buy another company or merge into some big companies and grow too big then they will lose all those special deals right away under that contract even if backlog exists. It will help in preventing big firms from snapping up small businesses to chase small business gigs.
From 2025 onwards, SBA as planned stricter loan rules. They are cutting the max for smaller loans to 350k dollars and now demanding better credit scores and those who want to take the benefit of loans, must be a full U.S. citizen or green card holder.
How can you take benefit from the new SBA rules?
If you want to gain information about the latest rules and regulations of the SBA, then you must visit the official website. In order to get more benefit, you can consult a professional for advice. You can consult any business advisor or accountant in order to understand that how these changes may impact your business. You can also utilize available resources such as training programs and mentorship offered by the Small Business Administration.
The gist? We are seeing a return to old-school underwriting. The pandemic-era “do what you do” flexibility is fading. The SBA Franchise Directory is back in play, and the cap for standard 7(a) small loans dropped to $350,000 (down from $500,000). Deals that used to skim through on a lender’s comfort now require solid documentation and crystal-clear explanations of where the money is going.
So, if you are buying a business or expanding your current one, do check the latest rules and regulations.
FAQs
- Should I pass tariff costs to my customers?
If you have a unique product or high switching costs, yes. If your customers can easily walk away, try to absorb the cost but offset it by selling bundles or services (mix) rather than just jacking up the sticker price across the board.
- What is the fastest lever to pull when tariffs spike?
Speed up your cash cycle. Convert fixed cost into variable cost and redefine terms and conditions with your customer.
- What are lenders most skeptical about in 2026?
Messy books. Lenders get nervous about “add-backs” you can’t explain, weak documentation, high customer concentration, and forecasts that don’t match your historical performance—especially in a worst-case scenario.
- What is the first step for an SBA loan right now?
Find out exactly which rulebook version applies to you. Write your application assuming the lender knows nothing about your business context.
- Are the SBA rules “settled” after the 2025 updates?
Not entirely. The September 2025 updates already amended the June rules. Always check for the latest procedural notices before you lock in a deal structure.
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