New York, April 30, 2026 – Bank of America today released its latest Small Business Owner Report, revealing a 23% year-over-year jump in small firms’ spending on gasoline and energy during the first quarter of 2026. The data underscores how record oil prices are directly hitting Main Street operators, contributing to squeezed margins and slower growth plans.
The report, based on aggregated spending and lending data from thousands of small business clients, highlights energy costs as the fastest-rising expense category, outpacing even insurance and labor.
What’s Impacting Businesses: Political and Economic Drivers
Politically:
Ongoing Middle East tensions, particularly around Iran, combined with recent high-level policy discussions and comments tied to former President Trump on energy security, have sustained elevated oil prices near four-year highs. This geopolitical volatility adds uncertainty for small businesses operating in the post-2024 political environment, where debates over tariffs, fiscal support, and regulatory relief continue to influence cost outlooks. Advocacy groups are pressing Congress for targeted energy relief to protect Main Street from international disruptions.
Economically:
WTI crude holding above $103 and Brent near recent peaks have driven the sharp rise in fuel and utility expenses, directly inflating costs for transportation-dependent retailers, manufacturers, and food-service operators. This compounds the 28% increase in small business insurance premiums reported earlier by JbizNews, as well as tighter credit conditions, forcing many owners to delay hiring or capital investments. The Bank of America data also showed a slowdown in overall payroll growth, signaling broader pressure on small-firm contributions to the economy.
Broader Context and Related Developments
The findings align closely with today’s earlier NFIB and U.S. Chamber of Commerce reports showing declining small business optimism, as well as ongoing concerns over New York City’s proposed Pass-Through Entity Tax credit changes. While the federal State Small Business Credit Initiative (SSBCI) continues to offer some lending support at the state level, the latest Bank of America figures highlight a widening gap between resilient corporate earnings and the mounting challenges facing smaller enterprises.
Bank of America Chief Economist Michael Gapen noted, “Small businesses are absorbing these energy shocks head-on, which could weigh on broader consumer spending and job creation if costs remain elevated.”
Stay tuned for updates as this story develops, including any potential policy responses from Washington or further data from small business surveys.
JbizNews Desk
