WASHINGTON, D.C. (June 12, 2025) – NFIB Research Center Executive Director Holly Wade joined Kristen Scholer on NYSE Live and Brad Smith on Yahoo! Finance to discuss this month’s Small Business Optimism Index and the top issues impacting small business owners nationwide.

Wade analyzes NFIB’s May SBET survey and explains why Main Street is more optimistic and how Congress can ease uncertainty surrounding taxes by making the Small Business Deduction permanent.

“For the month of May, we did see, as you mentioned, an uptick in optimism. A whole three points. And now, we’re… almost one point above the 51-year average for the Optimism Index among small business owners. That’s a good sign. This is the first increase in the index since the beginning of the year, where we’ve seen a lot of uncertainty and a lot of concern about how the developments of trade policy might impact the economy, might impact them personally. And, so, this is a sign that small business owners are a bit more comfortable where things are going.”

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“Small business owners were elated about the new administration, the configuration of Congress after the election, with the expectation that those provisions from the 2017 Tax Cuts and Jobs Act would be made permanent, so that they wouldn’t have to try and manage a huge tax increase at the end of this year if they didn’t pass the [One Big Beautiful Bill] that has all of those provisions in it. So, small business owners are still concerned about what the final legislation will look like, how long it will take Congress to move that forward to the president’s desk. And, so, they’re in anticipation that, especially the provision of the 20% Small Business Deduction, will remain in place, that will help them move forward in investing in their business.”

Watch Wade’s Yahoo! Finance interview here: https://finance.yahoo.com/video/small-business-optimism-index-taxes-171212782.html

“This is the first increase or improvement in the Small Business Optimism Index this year. We’ve seen steady declines since January, but this was a great improvement to see in May. And, as you mentioned, largely due to increased expectations, or improved expectations on business conditions, and increased expectations on sales. So, those two components were the main drivers in this three-point increase. We’re now above the 51-year average of the index. And, so that’s also a good sign that small business owners are feeling a bit more comfortable about where the economy is and where it is probably going in the near term.”

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“… Taxes, that is one of the constant problems small business owners face. And, right now, there is this looming tax bill out there that will help secure a lower tax platform for them and their ability to invest in their business, but it’s still in negotiations. So, the [One Big Beautiful Bill Act] is still being negotiated in Congress. That holds the 20% Small Business Deduction and, if that isn’t passed by the end of the year, small business owners are looking at a significant tax increase. So, that is something that’s on their mind.”

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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 nonprofit, nonpartisan, and member-driven. 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.

Wade analyzes NFIB’s May SBET survey and explains why Main Street is more optimistic and how Congress can ease uncertainty surrounding taxes by making the Small Business Deduction permanent.