Small businesses are navigating a challenging economic environment following the 2026 U.S. midterm elections, with inflation, borrowing costs, and political uncertainty shaping investment decisions. Ben Johnston, Chief Operating Officer of Kapitus, joins FINTECH.TV host Remy Blaire to discuss how a divided Washington could influence business confidence, tax policy, and access to capital heading into 2027.
Despite economic concerns, Johnston reveals that Kapitus recorded its highest monthly financing application volume in October, suggesting that small businesses are still investing in growth. He explains how business owners are seeking working capital to purchase inventory, hire employees, acquire equipment, and pursue new opportunities even as financing conditions remain tight.
The conversation also examines how elevated food and energy prices, geopolitical tensions, and the conflict involving Iran are affecting operating costs for restaurants, retailers, and other small businesses. Johnston discusses whether easing oil prices could eventually reduce transportation costs and provide relief from inflationary pressures.
With regional banks tightening lending standards and community banks continuing to consolidate, Johnston highlights the growing importance of alternative financing. He explains why maintaining multiple lending relationships and exploring private credit options may be essential for small businesses seeking financial flexibility and sustainable growth.