10 Things SMBs Need to Know This Week (February 23, 2026)

It’s been a turbulent week for small business owners. A Supreme Court decision upended the tariff landscape — only to be immediately replaced by a new policy hours later. The SBA quietly changed lending rules that will lock out thousands of business owners starting March 1. And AI adoption just crossed a major milestone that should reshape how you think about your technology budget.

Here’s everything you need to know before Monday morning.

1. Supreme Court Strikes Down IEEPA Tariffs — Then Trump Signs a New 10% Global Tariff

The biggest story of the week started as good news and quickly became complicated.

The Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs — a decision that initially sent small business owners scrambling to call their suppliers with relief. But within hours, President Trump signed a new proclamation imposing a 10% global tariff under a different authority (Section 122 of the Trade Act of 1974), effective February 24, 2026.

The net result: if you import goods, your landed costs are still going up. The legal mechanism changed; the economic impact did not.

What to do: Revisit your supplier contracts now, especially any cost-escalation clauses. If you’re buying domestic alternatives where possible, this week confirmed that pivot is worth accelerating.

Source: NBC News

2. Your Import Costs May Have Already Tripled — JPMorgan Data Confirms It

If last year felt expensive, new data from the JPMorganChase Institute confirms why. Tariff payments by midsized U.S. businesses tripled over the course of 2025. Companies employing a combined 48 million Americans absorbed those costs through higher prices, reduced headcount, or lower profit margins.

For 2026, supply chain leaders are responding by diversifying suppliers (51% of businesses), holding higher inventory buffers (44%), and shifting to “friend-shoring” — sourcing from countries with existing U.S. trade agreements (36%).

What to do: If you haven’t done a full supplier audit recently, now is the time. Even modest diversification can reduce your exposure to future tariff escalations.

Source: Fortune

3. SBA Will Bar Green Card Holders from SBA Loans Starting March 1

This one flew under the radar for many business owners. The Trump administration issued new SBA policy guidance that will prohibit legal permanent residents (green card holders) from owning any percentage interest in a business that applies for an SBA loan, effective March 1, 2026.

This reverses decades of prior SBA lending policy that explicitly sought to broaden access to small business financing as a driver of job creation. An estimated 13.6 million green card holders live in the U.S., many of whom own or co-own small businesses.

What to do: If you or any business partner holds a green card and you were planning an SBA loan application, consult a lender and a business attorney this week — before the March 1 deadline. Existing SBA loans are not affected; this applies to new applications.

Source: Axios

4. Six Tax Changes from the OBBBA Are Now Live — Including Permanent Bonus Depreciation

Several major provisions from the One Big Beautiful Bill Act (OBBBA) took effect January 1, 2026, and this is your reminder to make sure your accountant has briefed you on all of them. The headline items for small business owners:

• 100% bonus depreciation is back — permanently. Equipment purchases made in 2026 and beyond can be fully expensed in year one.
• The 20% QBI deduction is now permanent. Pass-through business owners get ongoing certainty for their tax planning.
• R&D expenses can be immediately expensed rather than amortized over five years.
• The 1099-NEC/1099-MISC reporting threshold rises from $600 to $2,000, reducing paperwork for contractors.
• The employer childcare credit jumps from 25% to 40% (up to $500,000), or 50% for small businesses with a $600,000 cap.

What to do: If you made significant equipment purchases in Q4 2025, confirm with your tax preparer how the retroactive and prospective rules interact. The bonus depreciation change alone can materially change your 2025 tax liability.

Sources: 1-800Accountant | Inc.

5. NFIB: Small Business Optimism Stays Above Average, But Insurance Costs Are Surging

The NFIB Small Business Optimism Index came in at 99.3 for January 2026 — slightly down but still above the 52-year historical average of 98. Capital expenditure intentions are at their highest since November 2023, and sales expectations remain positive.

The notable warning sign: insurance costs. Thirteen percent of small business owners now cite insurance cost or availability as their single biggest problem — up 4 points from December and the highest reading since 2018. That ranks it among the top concerns for the first time in years, ahead of labor quality and government regulations in some sectors.

What to do: If you haven’t shopped your commercial insurance policies recently, this is a signal that the market is moving. Get multiple quotes before your renewal date, and consider working with a broker who specializes in your industry.

Source: NFIB

6. AI Adoption Among Small Businesses Just Crossed 60%

AI adoption in business operations has reached 60% — exactly double the rate from 2023, according to new data from the U.S. Chamber of Commerce. For small businesses specifically, 59% of owners now view AI as essential for competitiveness within three years, and 96% plan to adopt emerging technologies soon.

The most common SMB use cases: content creation, customer service automation, financial planning, and cybersecurity. The businesses seeing the best ROI are those treating AI as a workflow layer — not a replacement for human judgment.

One important nuance from the data: audiences are increasingly able to detect AI-generated content. Small business owners who are getting results are balancing AI efficiency tools with authentic, community-driven content and real human voice in their communications.

Sources: U.S. Chamber of Commerce | Microsoft

7. Cybersecurity: Small Businesses Are the Target in 43% of All Attacks

If you think cybercriminals are focused on Fortune 500 companies, the data says otherwise. Small businesses are targeted in 43% of all cyberattacks in 2026, yet 47% of businesses with fewer than 50 employees have no cybersecurity budget.

The World Economic Forum flagged three specific AI-powered threats this month that SMBs should know about:

• Automated phishing campaigns that craft personalized emails at scale, far more convincing than mass phishing
• Deepfake executive impersonation for wire transfer fraud — criminals cloning voice or video of your “boss” to authorize payments
• Adaptive malware that modifies itself to evade standard antivirus tools

Phishing losses jumped 274% from 2023 to 2024. The average cost of a data breach for a small business now exceeds $4.9 million.

What to do: The baseline defenses matter most. Multi-factor authentication on every account, regular backups stored off-site, and annual phishing simulation training for your team will stop the majority of attacks. Free tools from CISA can help you assess your current exposure.

Sources: World Economic Forum | StrongDM

8. Hiring Gets Easier — But Finding Skilled Workers Stays Hard

The labor market balance has shifted. Job openings per unemployed person have dropped below 1.0, giving employers significantly more leverage in hiring than they had in 2022–2024. Wage pressure is moderating.

But the skill gap is still real. Per the latest NFIB Jobs Report, 31% of small business owners had job openings they could not fill in January 2026 — still well above the historical average of 24%. The disconnect is between available workers and workers with the specific skills employers need.

Separately, 50% of small business owners reported hiring or trying to hire in January — the lowest reading since May 2020, suggesting many owners have simply stopped trying to grow headcount in the current environment.

What to do: This is a good moment to reassess your compensation and benefits relative to your local market. Lower overall demand for workers doesn’t mean lower demand for skilled workers in your specific field. If you’re losing candidates to competitors, it may be worth a targeted salary survey.

Source: Indeed Hiring Lab

9. Two New Capital Programs Worth Knowing: SBA’s $150M and Visa’s $100M

Some good news on the financing front. The SBA’s 7(a) Working Capital Pilot Program has now delivered over $150 million in new loans to small manufacturers, specifically designed for inventory financing and working capital against assets. This is real money accessible through SBA-approved lenders.

Separately, Visa launched a new $100 million working capital facility through lender Lendistry, offering SMB loans starting at $25,000 for working capital, debt refinancing, and business expansion. It’s specifically designed for businesses that may not qualify through traditional bank channels.

This is particularly relevant given the SBA’s simultaneously tighter eligibility rules — having non-SBA options available matters more now.

What to do: If you need working capital in 2026, contact an SBA-approved lender about the Working Capital Pilot, and check Lendistry’s eligibility requirements for the Visa program. Current SBA 7(a) loan rates run 9.75%–14.75%, so shop the full range of options.

Sources: SBA.gov | Inc.

10. Consumers Are Trading Down — And It’s Squeezing Small Retailers

Consumer spending data released this week paints a clear picture: 73% of consumers made at least one discount retail purchase during the 2025 holiday season, and real consumer spending growth is projected to slow to just 1.5% in 2026. The personal saving rate sits at 3.5%, meaning households are drawing down savings rather than cutting spending — but that can’t last indefinitely.

Value-focused retailers and discount channels are gaining market share. For small retailers and direct-to-consumer businesses, this means customers are increasingly willing to trade down on brand loyalty to save money.

One offsetting trend: about one in three consumers now begins their shopping search on social platforms rather than Google. Small businesses with strong social commerce strategies — especially on Instagram and TikTok Shop — are finding customers at the top of their discovery funnel before they reach Amazon or big-box competitors.

What to do: If your pricing feels exposed, consider bundling strategies or value-add offers rather than competing on price alone. And if you haven’t invested in social commerce yet, this data suggests it’s worth prioritizing before Q2.

Sources: Stacker | Retail Dive

The Week in Summary

This roundup covers news from the week of February 23, 2026. Sources are linked inline. The SMB Hub publishes weekly news roundups for small business owners every Monday.