This article summarizes key findings from the NFIB Small Business Economic Trends Report for April 2026, released on May 12, 2026. To explore the data and analysis in greater depth, download the entire report here.

If you've felt like running your business is harder than usual lately, the numbers back you up. The National Federation of Independent Business (NFIB) — the country's largest small business advocacy organization — released its April 2026 Small Business Economic Trends report on May 12th, and the picture it paints is one of resilience under pressure.

We've pulled out the key findings and paired them with some straight talk about steps you can take — and how First Community Bank and Trust (FCBT) can be a resource along the way.

By the Numbers: April 2026

• 95.9 - NFIB Small Business Optimism Index — below the 52-year average of 98.0 for the second straight month
• 88 - NFIB Uncertainty Index — still well above the historical average of 68, though down 4 points from March
• 30% - Net share of small business owners raising average selling prices — more than double the historical average of 13%
• 64% - Small businesses reporting supply chain disruptions to some extent (up 2 points from January 2026)

1. Optimism Is Fragile, Not Broken

The NFIB Optimism Index edged up just 0.1 points in April to 95.9 — the second consecutive month below the long-run average of 98.0. The modest improvement is encouraging, but NFIB Chief Economist Bill Dunkelberg was measured in his assessment: "Inflationary pressures continue to be a challenge for Main Street. While small business optimism is currently fragile, the benefits of the Working Families Tax Cut Act should start to feed into the private sector over the next few months."

At the same time, uncertainty — while still elevated — is trending in the right direction. The Uncertainty Index fell 4 points from March to 88. It remains historically high, but the directional move matters.

What it means for you: Cautious optimism is not the same as pessimism. Many small business owners are finding ways to grow incrementally and protect their margins — and a local banking partner who understands your business can be a meaningful advantage in that environment.

2. Inflation Remains the Top Challenge

Selling prices are rising — fast. In April, the net share of owners raising average selling prices jumped 5 points from March to 30%, which is more than double the historical average of 13%. Planned price increases followed the same trend upward.

For many businesses, raising prices is no longer a choice — it's a necessity driven by higher input costs, including tariff-related increases on imported materials and goods. But price increases carry their own risk: customers notice, and demand can soften.

What it means for you: Managing the gap between rising costs and pricing strategy is one of the harder balancing acts in business right now. A business line of credit can serve as a buffer — giving you the flexibility to manage timing mismatches between when you pay your costs and when revenue comes in, rather than being forced into reactive pricing decisions.

FCBT’s Business Lines of Credit & Loans

Whether you need working capital to bridge a cash flow gap, financing to lock in inventory ahead of price increases, or long-term credit for equipment and expansion, our lending team builds solutions around your business. Visit https://www.firstcbt.bank/business-banking/business-loans to learn more.

3. Hiring Slowed — Labor Quality Still the Top Problem

The NFIB Employment Index fell for the second consecutive month, dropping from 101.6 to 100.4 in April — now below the 2025 average, though still slightly above the historical mean. Meanwhile, labor quality remained the single most-cited problem for small business owners.

Finding, hiring, and keeping qualified employees continues to be a structural challenge across nearly every industry. The NFIB industry-specific data released May 27th showed the Optimism Index fell across all four reported sectors — construction, manufacturing, retail, and services — with retail posting the weakest reading of the group.

What it means for you: Labor costs are a significant fixed expense, and managing payroll efficiently matters more than ever. FCBT's business deposit and cash management tools — including First eBiz online banking with ACH payroll capabilities — help you manage payroll, vendor payments, and day-to-day cash flow from anywhere.

FCBT’s Business Deposit & Cash Management

From our Commercial Deposit accounts to First eBiz Mobile, Office eTeller, and Office ePay, we give you the tools to manage your business finances on your schedule. Real-time visibility. Local decisions. Visit https://www.firstcbt.bank/business-banking/checking-accounts and https://www.firstcbt.bank/business-banking/online-banking to learn more.

4. Supply Chain Disruptions Are Back on the Rise

After improving through much of 2025, supply chain disruptions ticked back up in the NFIB's April data — 64% of small business owners reported disruptions to some extent, up 2 points from January. For businesses in wholesale and manufacturing, disruptions were most prevalent.

The culprits are familiar: tariff-driven cost increases, shifting sourcing relationships, and tighter freight capacity on certain routes. For import-reliant businesses, the upfront cash demand of tariff payments — due before goods are released — creates meaningful working capital strain.

What it means for you: If your business depends on imported goods or materials, having a pre-arranged credit facility before you need it is significantly better than scrambling for financing mid-disruption. We also offer Positive Pay — a powerful fraud protection tool — to help protect your business payments in a complex vendor environment.

FCBT’s Positive Pay Check Verification

Positive Pay adds an extra layer of security by allowing you to verify checks before they clear, helping stop fraud before it happens. In a volatile supply chain environment, it's a simple, smart tool for safeguarding your business. https://www.firstcbt.bank/positive-pay to learn more.

5. Looking Ahead: Reasons for Cautious Optimism

Despite the headwinds, small business owners are not retreating. The NFIB data shows seven of the ten optimism components actually increased in April, and the broad trend in uncertainty is downward from its March peak. NFIB's economists note that potential benefits from the Working Families Tax Cut Act may begin flowing into the private sector in coming months.

Nearly nine in ten small businesses nationally are reporting stable or growing revenue — and most are navigating current challenges through incremental growth, margin discipline, and operational focus rather than aggressive expansion.

What it means for you: Steady, disciplined growth is a sound strategy. And whether you're protecting what you've built, investing selectively for the right opportunity, or planning for what's next, having the right financial tools and a banker who knows your name makes a real difference.

To explore the data and analysis in greater depth, download the entire report here.

 

About National Federation of Independent Business (NFIB)
NFIB was founded by C. Wilson Harder in 1943, whose vision was to give small and independent business a voice in governmental decision-making through advocacy. Since its early history, our agenda has been determined through a one-vote balloting process of its membership. This process still stands today as we advocate for the independence of small business.

About First Community Bank and Trust
First Community Bank and Trust is a privately-owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 110 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

Press Contact:
Steve Koehn, Senior Vice President
First Community Bank and Trust
(708) 946-2246

 

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