Tariffs Are Forcing Small Businesses Into Predatory Debt — And Putting Jobs at Risk

For many small businesses, timing is everything. One North Carolina company with 10 employees shared how unpredictable tariff hikes didn’t just raise costs — they collapsed their cashflow, derailed their best sales year, and pushed them into dangerous financial territory.

Here’s their story:

“We have large orders from big box stores, and the timing of the tariffs killed our cashflow. This caused us to take out predatory MCA loans. The SBA has made it nearly impossible for small businesses to get funding in July 2025. So, we are now stuck with a debt that can’t be easily paid or refinanced. The tariffs messed up our best sales year! Now we face making tough decisions and cutting staff.” 

When small businesses suddenly face new, unpredictable costs — on tight margins, with large orders already locked in — their financial stability evaporates overnight

This Pittsboro, NC-based company isn’t alone. Across sectors, we hear the same themes:

• Unpredictable tariff timing disrupts cashflow

• SBA lending limitations leave small businesses without lifelines

• Predatory lenders fill the gap

• Businesses are forced to consider layoffs or closures

These are not abstract economic trends — they are real consequences for real employers and communities. Small businesses shouldn’t have to choose between taking on predatory debt or cutting jobs.

If your business has been impacted by sudden tariff changes, we want to hear your story. Your voice helps policymakers understand the urgent need for predictable, responsible trade policy that protects — not punishes — American small businesses.

📣 Share your story and sign onto our open letter to Congress. Together, we can make sure stories like this are heard.