Small Business Profitability Declines as Corporate Profits Surge, Bank of America Report Finds
By
John Schroyer
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Summary
While large corporations (S&P 500) are seeing massive profit surges (29% YoY in Q1 2026), small businesses across America are struggling. A Bank of America Institute report shows small business profitability down 1.3% year-over-year in April, the weakest reading in two years. Factors including Trump tariffs, rising gas prices, and labor supply shocks are squeezing Main Street businesses, leading to declining profits and slower hiring. Economist Taylor Bowley notes a confluence of pressures creating ongoing uncertainty for small business owners.
Key quotes
· 3 pulledSmall business profitability in April was down 1.3% from the previous year, the weakest reading in two years
Economist Taylor Bowley, an author of the report, said a confluence of factors over the past year, particularly new international tariffs, rising gas prices and labor supply shocks, are squeezing Main Street businesses
Between Trump tariffs, rising gas prices and labor supply shocks, Main Street businesses are seeing declining profits and slower hiring
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