Small business earnings plunge despite GDP growth [Video]

The backbone of the U.S. economy – the American small business – may be breaking beyond repair without some serious intervention, a new study by private digital lender Biz2Credit shows.

Data from the study was pulled from more than 100,000 financing applications submitted to Biz2Credit between January 2022 and December 2024, and it shows a sharp decline in the earnings of small businesses toward the end of 2024, a trend the lender sees continuing into 2025.

The study underscores concern about the economy after four years of so-called Bidenomics, or President Biden’s policies that involve taxes and regulations on the business community while providing tax incentives for some targeted industries that align with his progressive agenda. Despite strong headline numbers of GDP growth and low unemployment, problems such as inflation and regulatory costs have hit certain segments of the economy harder than others.

INFLATION RISES 2.9% IN DECEMBER, IN LINE WITH EXPECTATIONS

“Small business owners went on a roller coaster ride in 2024. Earnings grew until July and …