Category: Small Business

Despite a significant reduction in its staffing, the Small Business Administration (SBA) has been sharply focused this year on reorganizing internally, going after COVID fraud, and — of high importance to many small businesses — providing more financial resources, particularly grants, guarantees, and loans.

For example, the agency is offering new supply chain grants. Launched last week, these grants — a total of 20 for up to $500,000 each — are targeted at helping small businesses address supply chain constraints and increase production.

Companies and nonprofits can apply if they are eligible in a variety of industries that deliver technical assistance, industry engagement, supplier development, or similar services so that small businesses can reshore more of their purchasing or manufacturing.

The deadline for proposal submissions is Aug. 7.

Increased loan availability to $10 million

The SBA offers various loan and loan guarantee options, with its two most popular being the Section 7(a) and Section 504 programs. These programs can help fund equipment, property, and other capital costs — including the purchase of a business — through guaranteed loans made available by their network of qualified financial institutions.

Each program allows a maximum of $5 million in financing, but this month the agency announced it will allow qualified borrowers to combine the programs to create a maximum $10 million in potential financing.

Sherwood Robbins, who runs Seedcopa, a firm specializing in SBA financing that has offices in Exton and Wilmington, says he’s very optimistic about the program.

“Just about any business or industry can benefit from this new way to combine the SBA 504 and SBA 7(a) loan programs,” he said. “When used correctly and for the right projects, small businesses now get access to larger loan limits across the two SBA loan programs for their growth and expansion.”

Grocery and manufacturing guarantee loans

In March, the SBA said that it was making a special effort to provide financing for small businesses that produce, process, distribute, and sell food by increasing the loan guarantee they offer to their member banks issuing loans for up to 90% from the current 75% level.

That same month, the agency said that it would provide the same additional guarantees for small manufacturers to help them expand facilities, hire workers, and increase production.

In addition, the SBA recently expanded its International Trade Loan eligibility to include small businesses across the food supply chain, including those in the agriculture, production, and logistics industries.

“Being able to do 90% financing versus 80% or 75% financing lets businesses hold on to that critical cash so that they can invest in other parts of their business,” said Tom Pretty, head of SBA Lending at TD Bank, which has dozens of locations in the area. “Because of the SBA guarantee, a lender may be able to lend more aggressively against accounts receivable, inventory or other assets and provide a larger line to help a customer grow more quickly.”

Manufacturing grants

In May, the agency announced the availability of up to $50 million in grants to as many as 10 eligible applicant organizations. The grants could go toward training, technical assistance, and support “they need to grow, reshore critical supply chains, and help secure America’s position as a global manufacturing powerhouse for generations to come,” said SBA administrator Kelly Loeffler.

Under this program, eligible U.S. small businesses in industries such as aerospace, industrial machinery and equipment, construction equipment, metal fabrication, and robotics would get access to free business courses, hands-on training, and one-on-one consulting. The deadline for this year’s program was June, but the program will likely be back, so watch for opportunities to apply.

New working capital loans

The agency announced last year that it would provide new working capital loans to eligible companies under its existing 7(a) program that could be used for financing receivables and other working capital needs beyond the program’s traditional objective of financing equipment and property.

The working capital loans come at a higher interest rate than a traditional 7(a) loan but are still much lower than what most credit cards and private lenders charge. In February the agency announced that $150 million in credit was extended under the new program.

Pretty advises his customers to use these loans when borrowing needs fluctuate or they are taking on large contracts where funding can help with payroll, inventory, and other costs.

“Unlike a standard 7(a) term loan, the working-capital program revolves, so the business draws funds as needed and pays interest only on the amount being used,” he said. “It’s like having a credit-card limit without remaining fully borrowed all the time.”

Your business may be eligible for these programs, so it’s important to discuss with people who are familiar with what would best for you. This can include an SBA banker, an expert from SCORE, or a local Small Business Development Center office.

“When used correctly for the right projects, small businesses can really benefit by getting access to these programs for their growth and expansion,” Robbins said.

A wood placard mounted behind the register at Sherman Brothers Shoes in Center City is inscribed with the following message: “The BITTERNESS of Poor Quality Remains Long After the Sweetness of Low Price is FORGOTTEN.”

The saying is commonly attributed to Benjamin Franklin, making it a fitting aphorism for a shoe store that has served Philadelphia’s men for 73 years, outfitting them with pristine suede loafers and stitched leather boots, ranging in hues from auburn and chestnut to sienna and camel.

After seven decades in Center City, Sherman Brothers is moving from 1520 Sansom St. to the Main Line this summer. The men’s footwear retailer will take over 42 Greenfield Ave. in Ardmore, formerly home to consignment store Clothes Mentor, and will aim to open by Labor Day. The move will reestablish Sherman Brothers in the Philly suburbs, where it once had multiple storefronts, and will mark a new chapter for the storied family business.

Sherman Brothers was founded in 1953 by brothers Herbert and Edwin Sherman. The two purchased a small shoe store on Mole Street in Center City from their Uncle Lou, using a $5,000 loan from their father. Herbert and Edwin would take long road trips up to New England to visit shoe factories, stocking up with closeout and clearance shoes from brands like E.T. Wright, Bates, and Alden. Because they were buying clearance shoes, they often returned to Philadelphia with extra small and large sizes, making Sherman Brothers a favorite store for men with hard-to-fit feet.

In 1967, the brothers moved to the Sansom Street location. By then, the store had become a destination for mayors and council members, athletes and entertainers, turning to standing room only during its busiest hours. At one point, Sherman Brothers had three suburban outposts in addition to the Sansom Street store, all of which eventually closed. Now, the shoe store does more than half of its business online, shipping to buyers everywhere from Mississippi to Nebraska.

Ken Sherman, 66, Herbert’s son, has “been doing this all my life.”

Ken, along with his cousin Jeffrey, make up the second generation of Sherman Brothers ownership. Ken worked in the shoe store in high school, then after class as a student at Temple University. He’s always loved key components of the business: schmoozing with customers, visiting factories, learning the art of bending leather into footwear. He says he can size up a person’s foot just by looking at a picture.

“This business is a passion of mine,” Ken said, sitting in the store on a Tuesday morning.

As he moved through the store, Ken helped a patron pick out a pair of wedding shoes and pointed out a favorite shoe brand of Gov. Josh Shapiro, who’s known for pairing suits with upscale sneakers.

“I love the customers,” he said. “I love what we do. I love just engaging in conversation.”

The reasons for moving Sherman Brothers to Ardmore are manifold, said Ken.

The block of Sansom Street where the store is located has become a restaurant hub — Sherman Brothers is flanked by 1518 Bar & Grill, Mission Taqueria, Oscar’s Tavern, and Bagels & Co., among other bars and eateries. The shoe store is one of the last retailers on the block. For years, Ken said, stakeholders made offers to bring something new into the Sherman Brothers space. Ultimately, a restaurant made an offer that the Shermans decided to take (the Shermans own the buildings at 1518 and 1520 Sansom Street and lease space to multiple tenants). Ken declined to share any details about the new restaurant, which will be called Silver Shaker.

Another reason to leave Center City: Parking. For years, Sherman Brothers employees and patrons have complained of parking tickets and the high prices of lots. The Ardmore store will have ample free parking.

Ken said he’ll miss the city — the Sansom Street storefront holds memories of celebrity patrons, family milestones, and now-funny mishaps. He hopes his Philadelphia customers will make the trek out to Ardmore to visit with him. But he’s ready to bring Sherman Brothers back to the Main Line.

“We’re still Sherman Brothers. Our legacy is what it is, and I’m proud of that, proud of what we’ve done for the city,” Ken said.

“We’re gonna do exactly what we do, just in a different location.”

This suburban content is produced with support from the Leslie Miller and Richard Worley Foundation and The Lenfest Institute for Journalism. Editorial content is created independently of the project donors. Gifts to support The Inquirer’s high-impact journalism can be made at inquirer.com/donate. A list of Lenfest Institute donors can be found at lenfestinstitute.org/supporters.

You’ve built up your business over years. Now it’s time to sell. You’ve found a buyer. You’ve negotiated a good price. You close the deal.

And then comes the hard part: paying taxes on your gain.

It could be a big number. But there are a number of ways to potentially defer — or even reduce — this cost.

Here are two strategies that have grown in popularity.

Structured installment sale

Using this approach, you don’t take the money up front from the buyer. Instead, a third-party assignment company assumes the buyer’s obligation to make future payments to you.

In many structured installment sales, that obligation is funded by an annuity.

An annuity is an investment vehicle that makes a fixed payment to you over a number of years — even your entire lifetime — in exchange for a lump-sum payment up front, which would be made directly by the buyer of your company. These are usually sold by insurance companies or other large financial services firms.

People like annuities because they protect their principal and offer longer-term financial security. Because many fixed annuities offer a guaranteed payment that covers your expenses, they can also potentially minimize the risk of you outliving your savings.

A structured installment sale defers the capital gains tax on the sale of your company into the future because you only owe the tax in the year when you receive your annuity payment. Interest earned on the annuity is taxed at your ordinary rate as you receive the payment. If your total income declines in the future, this tax could decrease.

“A lot of owners have put everything they had into building the business,” said Wade Martin, a financial adviser with RBC Wealth Management in Princeton. “They don’t have a pension, they haven’t focused on their own financial planning, and they don’t want to take stock market risk. For someone like that, a fixed monthly payment can let them sleep at night.”

There are downsides to annuities.

You lose control over your investment decisions and forego potentially higher gains if you had invested the money on your own. Each installment payment may include a return of basis (part of the money originally put in), capital gain taxed at capital gains rates, and an interest component taxed as ordinary income. Depending on your circumstances, that interest income — or the tax treatment of any remaining annuity value inherited by your beneficiaries — could result in a higher overall tax bill than taking the proceeds up front. You’ll incur fees and you’d likely be susceptible to surrender charges if you withdraw your money early.

“You could theoretically invest the money elsewhere and earn a better return than the annuity’s guaranteed rate,” said Bejan Shirvani, head of structured settlements at MetLife. “However, a good annuity can offer guaranteed payments and professional management.”

Dianne Stewart sold her New Jersey-based auto repair business, Kingston Garage, in 2024. At first she was dubious about a structured installment sale. But then she saw the benefits.

“I asked myself: Do you really need all the cash up front? What are you going to do with it?” she said. “I soon realized that it would be stupid to sell the business outright and lose about 30% to taxes, so for me it’s like a tax-deferred pension.”

But this arrangement may not be for everyone, Stewart acknowledges.

“If you need the money to buy another business or make another investment, it may not fit,” she said. “But if you’re retiring, I think it’s geared toward people who want income instead of one big check, and who want to spread out their tax bill over a longer period of time.”

Donor-advised funds (DAFs)

Setting up donor-advised funds with a wealth adviser allows you to make charitable contributions each year, and then take a tax deduction (subject to some limitations) without actually giving the money away immediately. The fund grows tax-free and you can decide in the future where you want the savings to go. It’s a great way to take advantage of the charitable deduction without committing to a specific charity.

DAFs can also be used to reduce your taxes when you sell your business. The trick here is to make sure your DAF owns a minority shareholder interest in your company before the sale. That way when you sell the company, cash goes to the DAF based on its ownership percentage without generally incurring capital gains taxes because it is a charitable organization.

“A donor-advised fund gives you an immediate tax deduction, tax-free growth inside the account, and the flexibility to decide later which charities will ultimately receive the money,” said Jesse Wideman, a financial adviser with Zenith Wealth Partners in Philadelphia. “Many of my clients have unusually high-income years, often because they’re selling a business. A donor-advised fund lets them capture the charitable deduction in that high-tax year while distributing the money to charities over many years.”

If a business owner is charitably inclined a DAF should be seriously considered, Wideman says, but it’s also important to make sure it’s part of your overall financial plan.

Martin noted that any of these approaches requires thought and long-term planning.

“It’s a holistic viewpoint,” Martin said. “you have to look at estate planning, income taxes, risk tolerance, and what helps someone sleep at night. It’s important to bring in your accountant, attorney, and financial adviser together before making a decision.”

Wars. Inflation. Tariffs. Labor shortages. High interest rates. Political uncertainty. If you only read the headlines, you’d think America’s small businesses are on life support. They’re not.

The sentiment I’ve been hearing and seeing from dozens of industry groups and clients about this year is “so far, so good.” This comes from businesses that do everything from distributing industrial equipment to installing commercial doors. With few exceptions, most have not only been holding their own in 2026, but they’ve been growing.

Anecdotal? Hardly. The data supports these claims.

Manufacturing in the U.S. has expanded for the past five months, reaching its highest level since 2022, according to the closely watched Purchasing Managers Index from the Institute for Supply Management. Service industry companies, according to a similar index, have seen expansion since 2024.

In June, small-business revenue increased in 11 of 12 sectors and in all eight U.S. regions, according to a small-business index published monthly and based on real-life data from hundreds of thousands of customers using Intuit QuickBooks. Payment processing firm Fiserv found that small-business sales showed steady short-term expansion in June, with both nominal sales and transaction volume increasing. Last quarter’s national GDP was just revised from 1.6% to 2.1%.

The U.S. Census Bureau reported that new business applications continue to come in at all-time highs. Even LinkedIn said that there’s been a 69% year-over-year increase in the number of U.S. members adding founder to their profile.

Want more proof?

Despite lower levels of optimism, over half of Main Street owners rated the health of their business as “excellent or good,” the National Federation of Independent Business reported this month. A recent survey from financing firm OnDeck said 93% of small businesses expect growth in 2026, and marketing firm Vistaprint said this month that 84% of small-business owners report being happy operating their businesses, despite ongoing economic and operational challenges.

Bank of America’s June 2026 Small Business Checkpoint said the small-business sector remains “financially healthy and operationally resilient.” MetLife and the U.S. Chamber of Commerce found strong confidence in business health, cash flow, and future growth prospects despite ongoing concerns about inflation, labor costs, and economic uncertainty.

Three out of four U.S. small-business owners expressed “high confidence” in their business’ future, according to new research from Capital One. TD Bank’s recent survey said that small-business owners also remained highly optimistic about future growth.

Economist Mark Zandi recently wrote that among the 25 largest metropolitan areas in the country with populations of more than 3 million, Philly enjoyed the strongest job growth last year. Payroll firm ADP reported that the private businesses in the U.S. added 122,000 jobs in May and 98,000 in June. HR giant Paychex said small-business hiring increased over the past four months.

Job openings among small businesses are rising, an indicator of demand for employees.

“Main Street job openings in New Jersey and nationwide are starting to pick up after a decline in May,” National Federation of Independent Business New Jersey state director Eileen Kean told ROI-NJ.

Center City, which represents 42% of all Philadelphia employment, has seen office leasing activity reach its highest level in six years, according to Center City District’s State of Center City 2026 report. The report also highlighted development projects topping $2 billion; projected Convention Center attendance exceeding 1 million in 2026; and retail, restaurants, and cultural institutions that “continue to rebound strongly.”

There are always news reports about how this business is “struggling” and that business is “barely holding on.” There’s no denying that this happens. How could it not? There are more than 34 million small businesses in the United States operating in hundreds of different industries and localities. Some are bound to be doing better than others.

But other things happening right now are underscoring small-business growth and optimism.

Tariffs (that aren’t being refunded) may have increased costs for some, but many manufacturers are reporting increased domestic demand as global firms move more operations here.

Inflation is sticky, but at less than 3% excluding energy, most business owners have found ways to pass these costs down to their customers or find other savings internally.

Labor shortages persist but most company owners are getting their work done regardless.

And consumer spending is strong, according to recent data from the National Retail Federation.

Oil prices are now back down to prewar levels.

Many owners are also benefiting from a lighter federal regulatory environment and friendlier tax policies. Capital is more expensive than in years past, but available for those who can measure return on investment. The stock market is up over 20% over the past year, providing more financial security. And for entrepreneurs and small-business owners, government aid and other resources, education, tools, and support proliferate like never before.

Small businesses employ half of the country’s workers and make up half of our GDP. Their success is critical for the U.S. economy.

They aren’t ignoring the challenges. They’re simply finding ways around them. And that’s why, despite all the doom and gloom, many are having a surprisingly good year.