FOR IMMEDIATE RELEASE
Contact: John Kabateck, California State Director, john@kabstrat.com
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

SACRAMENTO, Calif., Aug. 12, 2025—From NFIB California State Director John Kabateck on today’s release of the monthly Small Business Optimism Index from the National Federation of Independent Business (NFIB), showing it rising 1.7 points in July to 100.3, slightly above the 52-year average of 98. Contributing most to the rise in the Optimism Index were respondents reporting better business conditions and reporting that it is a good time to expand.

“Glad to see small-business owners nationally breaking out of the economic slump that has hung over them for too long, but can their California counterparts share in the good news? We are not a small-business-friendly state, the latest proof of which came from the State Assembly’s refusal to give Senate Bill 84 even one hearing. The modest measure would have provided small-business owners a safe-harbor of time to correct an ADA violation before being subjected to a shakedown lawsuit. It passed the Senate 34 to 2 with big bipartisan support. We’ll see how much worse or better it can get in the month remaining in the 2025 session of the Legislature.”

NFIB’s monthly Small Business Optimism Index is the gold standard measurement of America’s small business economy. Used by the Federal Reserve, Congressional leaders, administration officials, and state legislatures across the nation, it’s regarded as the bellwether on the health and welfare of the Main Street enterprises that employ half of all workers, generate more net new jobs than large corporations, and gave most of us the first start in our working life. The Optimism Index (aka Small Business Economic Trends report) is a national snapshot of NFIB-member, small-business owners not broken down by state. The typical NFIB member employs between one and nine people and reports gross sales of about $500,000 a year.

From NFIB Chief Economist Bill Dunkelberg

“Optimism rose slightly in July with owners reporting more positive expectations on business conditions and expansion opportunities. While uncertainty is still high, the next six months will hopefully offer business owners more clarity, especially as owners see the results of Congress making the 20% Small Business Deduction permanent and the final shape of trade policy. Meanwhile, labor quality has become the top issue on Main Street again.”

Highlights from the Latest NFIB Small Business Optimism Index

• In July, there was a notable improvement in overall business health. When asked to rate the overall health of their business, 13% reported excellent (up five points), and 52% reported good (up three points). Thirty-one percent reported the health of their business was fair (down four points), and 4% reported poor (down three points).
• The percent of small business owners reporting poor sales as their top business problem rose one point to 11%. This is the highest level of poor sales since February 2021.
• The net percent of owners expecting better business conditions rose 14 points from June to a net 36% (seasonally adjusted). This reading is comfortably above the historical average.

• In July, 16% (seasonally adjusted) reported that it is a good time to expand their business, up five points from June.

Keep up with the latest California small-business news at www.nfib.com. Follow us on X @NFIB_CA and on Facebook @NFIB.CA.
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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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