Business Applications for May: Two Directions, Higher Levels Continue

By SBE Council at 11 June, 2025, 5:29 pm

by Raymond J. Keating -

New business applications data in May, as reported by the U.S. Census Bureau, pointed in two different directions.

First, total business applications (i.e., applications for business Employer Identification Numbers through the IRS) for May declined by 0.6 percent.

Second, high-propensity applications - that is, applications more likely to turn into businesses with employees - increased by 1.6 percent.

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Source: Federal Reserve Bank of St. Louis, FRED

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Source: Federal Reserve Bank of St. Louis, FRED

Once again, the key takeaway from this dataset is that new business applications post-pandemic have been running far ahead of pre-pandemic levels. That remains one of the most hopeful signals about the U.S. economy as we look ahead.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .