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Bank for America's Business Owner Report showing cautious optimism from small and mid sized businesses as the FED prepares to cut interest rates. Sharon Miller of Bank for America writing, rate cuts will reduce the cost of debt servicing on floating rate credit facilities. This easing of the expense environment may create cash flow capacity for expansion or investment opportunities. We're lucky this morning that Sharon gets to join us on this program. Sharon, welcome to this program. I just want to start with this one. The amount of insight that you and the team have across one in every three small businesses in America. We're worried about stress starting to build, weakness starting to materialize. What are you seeing in the businesses that you cover at the.

Bank for America's Business Owner Report showing cautious optimism from small and mid sized businesses as the FED prepares to cut interest rates. Sharon Miller of Bank for America writing, rate cuts will reduce the cost of debt servicing on floating rate credit facilities. This easing of the expense environment may create cash flow capacity for expansion or investment opportunities. We're lucky this morning that Sharon gets to join us on this program. Sharon, welcome to this program. I just want to start with this one. The amount of insight that you and the team have across one in every three small businesses in America. We're worried about stress starting to build, weakness starting to materialize. What are you seeing in the businesses that you cover at the.

Moment, Well, you're right. We cover three point four million small and mid sized businesses in the US and we are the number one lender to small business across the US, and so we do have a lot of insight into what's happening. In our most recent survey that we did with business owners in the spring, we found cautious optimism from our clients and so they do expect their revenues to increase over the next twelve months, and we know that debt servicing, as you said in the opening here, will be reduced because we do expect that rates will be cut as wef our economists do here at Thank of America twenty five bases point in the next five said meetings.

Moment, Well, you're right. We cover three point four million small and mid sized businesses in the US and we are the number one lender to small business across the US, and so we do have a lot of insight into what's happening. In our most recent survey that we did with business owners in the spring, we found cautious optimism from our clients and so they do expect their revenues to increase over the next twelve months, and we know that debt servicing, as you said in the opening here, will be reduced because we do expect that rates will be cut as wef our economists do here at Thank of America twenty five bases point in the next five said meetings.

So Shawny, you saying they've got the confidence the expansion plans of ready that just waiting for small reductions for the Federal Reserve over the next few qultzas.

So Shawny, you saying they've got the confidence the expansion plans of ready that just waiting for small reductions for the Federal Reserve over the next few qultzas.

They are, and we still see demand in the marketplace now, So I'm not saying that they're rating entirely. There is good growth in the across the small and mid sized company sectors, but they are watching that and certainly as we see rates come down, that will improve their cash grow and certainly consumer demand.

They are, and we still see demand in the marketplace now, So I'm not saying that they're rating entirely. There is good growth in the across the small and mid sized company sectors, but they are watching that and certainly as we see rates come down, that will improve their cash grow and certainly consumer demand.

Sharon I got to say, I was reading this report shocked to the recent report that you put out. I was kind of shocked that actually we saw such sanguine sentiment that people were expecting to continue to hire, that they were continuing to expand they had positive outlook for their businesses. How do you reconcile that with some of the rhetoric that we hear every single day. This is an economy that's on the rais or edge of turning negative.

Sharon I got to say, I was reading this report shocked to the recent report that you put out. I was kind of shocked that actually we saw such sanguine sentiment that people were expecting to continue to hire, that they were continuing to expand they had positive outlook for their businesses. How do you reconcile that with some of the rhetoric that we hear every single day. This is an economy that's on the rais or edge of turning negative.

You know, I think with small and mid sized companies. So we've bank clients in the business banking space from startup to fifty million in revenues. And so when you have a smaller company, you're certainly more nimble, You're able to really, you know, think about your business, your growth, and you can pivot easily. Bigger corporations may have more you know, of a hard time doing that, and so that is a competitive advantage of small to mid size companies and we see that come through in the data and just in our conversations that we're having every day across the desk from these clients.

You know, I think with small and mid sized companies. So we've bank clients in the business banking space from startup to fifty million in revenues. And so when you have a smaller company, you're certainly more nimble, You're able to really, you know, think about your business, your growth, and you can pivot easily. Bigger corporations may have more you know, of a hard time doing that, and so that is a competitive advantage of small to mid size companies and we see that come through in the data and just in our conversations that we're having every day across the desk from these clients.

What I thought also was striking was in the market, it seems like in FLA is no longer a significant concern. We heard just a couple of days ago from Mike Wilson over at Morgan Stanley that's dead. Essentially, inflation is no longer an issue when it comes to what you're seeing in bonds. Nonetheless, sixty eight percent of small business owners so they've raised their prices over the past twelve months and on average, they've raised prices by twelve percent. They're talking about inflation as a more pressing concern than many other things that we talk about every day. How do you understand whether this is really a small business issue or whether maybe we're not giving enough credence to just how much ongoing inflationary pressure there actually is.

What I thought also was striking was in the market, it seems like in FLA is no longer a significant concern. We heard just a couple of days ago from Mike Wilson over at Morgan Stanley that's dead. Essentially, inflation is no longer an issue when it comes to what you're seeing in bonds. Nonetheless, sixty eight percent of small business owners so they've raised their prices over the past twelve months and on average, they've raised prices by twelve percent. They're talking about inflation as a more pressing concern than many other things that we talk about every day. How do you understand whether this is really a small business issue or whether maybe we're not giving enough credence to just how much ongoing inflationary pressure there actually is.

Well, there is ongoing and inflationary pressure. It is a sticky issue, and so we continue to hear that that is the number one concern of small and mid sized companies. And so you have seen price increases brought along because of all the pressure there. So I do see it as a concern. We hear it from our business owners, and we do feel that as we go forward and the cycle begins to ease a bit, that it's going to take some.

Well, there is ongoing and inflationary pressure. It is a sticky issue, and so we continue to hear that that is the number one concern of small and mid sized companies. And so you have seen price increases brought along because of all the pressure there. So I do see it as a concern. We hear it from our business owners, and we do feel that as we go forward and the cycle begins to ease a bit, that it's going to take some.

Pressure off Sharon, given that pricing pressure, how difficult is it for these small companies to keep up with the bigger players.

Pressure off Sharon, given that pricing pressure, how difficult is it for these small companies to keep up with the bigger players.

Well, I think that you know, there is some difficulty in keeping up with the bigger players, but I would say that you know, they also have a competitive advantage, and so you know, as supply chains have improved and as businesses have expanded, and certainly they've gone more online, gone more digital, They have more reach and scale than they might have had before the pandemic. And so what we are seeing are expansion plans from small and missized companies and they are competing and certainly, you know, they benefit from the downstream impact as well from larger corporations.

Well, I think that you know, there is some difficulty in keeping up with the bigger players, but I would say that you know, they also have a competitive advantage, and so you know, as supply chains have improved and as businesses have expanded, and certainly they've gone more online, gone more digital, They have more reach and scale than they might have had before the pandemic. And so what we are seeing are expansion plans from small and missized companies and they are competing and certainly, you know, they benefit from the downstream impact as well from larger corporations.

We're talking about inflation. We're trying of the fact that they're preparing for these rate cuts. When you talk to clients, what is their number one concern right now in this economy?

We're talking about inflation. We're trying of the fact that they're preparing for these rate cuts. When you talk to clients, what is their number one concern right now in this economy?

Their number one concern is inflation, and then right next to the is hiring and making sure that they have the right skilled labor, the right employees to go into their business to work. And so those are the concerns that we hear every day. We were also in an election year, so did you hear that as well, But we hear that with every election cycle. We've been doing this report for the last ten years, and so in each election cycle, we'd see, you know, concerns once the election is over, no matter who wins, no matter what party, that there's certainty and so people can move forward. And so that's what we're hearing this cycle as well. And you know, I anticipate after November there'll be certainty and people will continue as their plan.

Their number one concern is inflation, and then right next to the is hiring and making sure that they have the right skilled labor, the right employees to go into their business to work. And so those are the concerns that we hear every day. We were also in an election year, so did you hear that as well, But we hear that with every election cycle. We've been doing this report for the last ten years, and so in each election cycle, we'd see, you know, concerns once the election is over, no matter who wins, no matter what party, that there's certainty and so people can move forward. And so that's what we're hearing this cycle as well. And you know, I anticipate after November there'll be certainty and people will continue as their plan.

Sharon, talk to us a little bit about how things have changed since March of last year, given all the banking stress in this country and some of the banking fatures as well. How some of your clients have changed the way they do business with you. Where they've managed to attract a lot more small businesses over the last twelve months. Worried about where they place that cash, and they want to put it with a bigger institution like Banks of America. Sharon, how much has changed?

Sharon, talk to us a little bit about how things have changed since March of last year, given all the banking stress in this country and some of the banking fatures as well. How some of your clients have changed the way they do business with you. Where they've managed to attract a lot more small businesses over the last twelve months. Worried about where they place that cash, and they want to put it with a bigger institution like Banks of America. Sharon, how much has changed?

Well, I mean, I think, listen, we are the number one small business bank in the US, and we're very proud of that. We have been for the last four years plus, and so you know, we continue to stand on our clients and good times and bad and certainly you know, we every day we work to attract new clients and to retain the clients we have because this is our mission. This is where communities meet business and that is what we do at Bank of America. So we want to be sure that we are there for our clients. We have the capabilities that they need, whether it's to transact internationally, to be able to you know, have expansion in their business, to get a loan, to provide payments for merchants, so all of those different areas we are able to help our clients, and so we want to make sure that we're there for them, whether it be our online tools and capabilities to manage their cash flow. So we're investing in the business based on what we hear from clients and what they need.

Well, I mean, I think, listen, we are the number one small business bank in the US, and we're very proud of that. We have been for the last four years plus, and so you know, we continue to stand on our clients and good times and bad and certainly you know, we every day we work to attract new clients and to retain the clients we have because this is our mission. This is where communities meet business and that is what we do at Bank of America. So we want to be sure that we are there for our clients. We have the capabilities that they need, whether it's to transact internationally, to be able to you know, have expansion in their business, to get a loan, to provide payments for merchants, so all of those different areas we are able to help our clients, and so we want to make sure that we're there for them, whether it be our online tools and capabilities to manage their cash flow. So we're investing in the business based on what we hear from clients and what they need.

Well, we have with thanks that you managed to make some time for us this morning, and we appreciate it. Sharon, thanks for joining the program. Thank you, Sharon Miller. There of Bank for America. I'm the latest insight into the small business situation across this country, biggest banker of small businesses,

Well, we have with thanks that you managed to make some time for us this morning, and we appreciate it. Sharon, thanks for joining the program. Thank you, Sharon Miller. There of Bank for America. I'm the latest insight into the small business situation across this country, biggest banker of small businesses,