Many small and mid-sized business (SMB) owners entered 2025 with high hopes: a stronger economy, falling interest rates and easier access to credit. Here's what's happening — and how to position your company for success in a shifting credit environment. Optimism is slipping, uncertainty is risingAccording to the National Federation of Independent Businesses (NFIB), the Small Business Optimism Index dropped 2.3 points in January 2025 to 102.8. A new credit squeeze may be formingThe Federal Reserve's January 2025 Senior Loan Officer Opinion Survey (SLOOS) reveals that banks are beginning to tighten credit standards for small business borrowers, especially those with lower credit scores. For business owners with weaker credit profiles or limited borrowing history, this could translate into fewer options and tougher terms.