How Are Small Businesses Doing in the Southeast? A Look at the Latest Survey Results

How Are Small Businesses Doing in the Southeast? A Look at the Latest Survey Results

June 25, 2026

• Partners Update
• Publication
• Regional Economy
• Community and Economic Development

Small businesses¹ are vital to the economy by driving job creation, innovation, and local economic activity. Understanding how these firms are faring-and how their needs are evolving-is essential to supporting an economy that works for everyone. Each year, the Federal Reserve's Small Business Credit Survey (SBCS) provides valuable insights into small business conditions, financial needs, and credit experiences.²

The 2025 SBCS, fielded from September through October, collected responses from over 6,500 small employer firms nationwide. The 2026 Report on Employer Firms provides a national view of small business conditions, while the profiles below provide a deeper look at the experiences of small businesses in the Sixth Federal Reserve District.³

Analysis of 2025 SBCS data of small businesses in the Sixth District suggests many continue to navigate difficult conditions. Most firms across the district (69 percent) reported poor or fair financial conditions. As in prior years, firms most commonly cited rising costs of goods, services, and/or wages; paying operating expenses; and managing uneven cash flow as the most common financial challenges. These pressures contributed to mixed revenue performance in 2025, though many firms expressed optimism about future conditions. While Sixth District firms applied for financing at rates similar to the national sample, they were less likely to receive partial or full financing approval.⁴

Small business conditions vary even across the Southeast. The accompanying six infographic fact sheets detail small business conditions in Alabama, Florida, Georgia, and Tennessee, as well as metropolitan profiles for the Atlanta-Sandy Springs-Roswell MSA and Miami-Fort Lauderdale-West Palm Beach MSA.⁵

States

Alabama

Florida

Georgia

Tennessee

Cities

Atlanta

Miami

Small businesses play a critical role in shaping economic conditions across the Southeast. These profiles illuminate small business experiences and help inform service providers, lenders, and policymakers. By understanding firm conditions, needs, and challenges, regional stakeholders can tailor programs and strategies that more effectively support small business.

The Atlanta Fed encourages small businesses across the Southeast to participate in the fall 2026 survey to ensure the region's voice is represented in future analysis. Organizations that have strong relationships with small-business owners can also support this effort by becoming a SBCS Partner.

The views expressed here are those of the authors' and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors' responsibility.

• ¹ Whenever we refer to firms, small firms, or small businesses here, we refer to businesses with fewer than 500 employees.
• ² The SBCS is nationwide convenience sample of small employer firms; results should be analyzed with awareness of potential biases that are associated with convenience samples. Get detailed information about the survey design and weighting methodology at our website, fedsmallbusiness.org, where you can also find the results of previous surveys.
• ³ The Atlanta Fed territory covers the Sixth Federal Reserve District, which includes Alabama, Florida, and Georgia, and portions of Louisiana, Mississippi, and Tennessee.
• ⁴ The SBCS appendix provides additional detail for figures presented in the 2026 Report on Employer Firms.
• ⁵ Due to an insufficient number of survey responses we cannot share results for Louisiana and Mississippi, though they are part of the Federal Reserve Bank of Atlanta's Sixth District. States and MSAs with 100 responses or more are eligible for additional weighted analysis. For more information, see the methodology section in the 2026 Report on Employer Firms.