Small Business Outlook: Capital, Costs, and GenAI | Shruti Patel, U.S. Bank

Shruti Patel, who leads business banking at U.S. Bank, walks through highlights from their third annual Small Business Survey.

U.S. Bank drew on feedback from the ~1.5 million small businesses U.S. Bank serves which ranges from roughly $100K up to about $25M in annual revenue, the survey is designed to capture sentiment and day-to-day pressures, then feed those insights into product design, technology investments, and frontline support. Patel says the topline message is steady: many small businesses feel they performed well over the last 12 months and remain generally optimistic about growth. At the same time, the same set of macro pressures that showed up last year are still front and center.

Concerns around tariffs are top of mind and access to working capital remains a sticking point, inflation and rising operating costs continue to squeeze margins, while there’s a close eye on whether consumer spending will hold up as the year progresses; which translates into demand for faster, simpler working-capital solutions, better cash-flow tools, and guidance that helps owners navigate cost volatility and demand uncertainty. A notable shift Patel calls out is the rapid, budget-friendly adoption of generative AI. More than half of respondents are either already using GenAI or plan to within the next year, and most say they’re doing so with tools that cost under $50 annually and are leaning on AI for content and marketing support and for basic back-office efficiency.

The takeaway isn’t just enthusiasm, it’s that the barrier to experimenting is now very low.