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Small Business Bankruptcies Rise Slightly Amid Optimism for Growth

1/11/2026

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Summary

Story summary

In 2025, there were 2,221 bankruptcy filings by small businesses under a special provision, ten more than in 2024.
That level remains statistically insignificant relative to the more than 33 million small businesses in the United States.
Optimism among small business owners remains high, with 79% expecting revenue growth in 2026.
The rise in new business applications in recent years has not produced a corresponding increase in bankruptcies.

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Story summary

In 2025, there were 2,221 bankruptcy filings by small businesses under a special provision, ten more than in 2024.
That level remains statistically insignificant relative to the more than 33 million small businesses in the United States.
Optimism among small business owners remains high, with 79% expecting revenue growth in 2026.
The rise in new business applications in recent years has not produced a corresponding increase in bankruptcies.