Hometap Survey: 78% of Small Business Owners Are Concerned About the Economy, Yet Most Expect Growth in 2026

New data exposes the financial pressures, growth barriers, and capital gaps facing small business owners in 2026

BOSTON--(BUSINESS WIRE)--A new survey from Hometap, the Boston-based financial technology company pioneering home equity financing solutions, finds that small business owners in 2026 are optimistic despite real headwinds. They are largely self-funded, hungry for flexible capital, and navigating a financial landscape that does not always work in their favor.

Small businesses are the backbone of the American economy, yet the financial tools available to them have not kept pace with the realities they are facing today. Rising costs, shifting trade policy, and an uncertain economic environment are creating real pressure. Against that backdrop, Hometap surveyed 1,000 current and aspiring small business owners — with small businesses defined as businesses with fewer than 100 employees — across generations, genders, and homeownership statuses to better understand how they are funding their businesses, what is standing in the way of growth, and where home equity fits into the picture.

"The data tells a story we hear from small business owners regularly. They are resourceful, determined, and self-reliant," said Jeffrey Glass, CEO of Hometap. "What they need is capital that works with them, not against them. Flexible, accessible financing is not a nice-to-have for this group. It’s what this environment demands."

Hometap's survey findings reveal a detailed picture of how small business owners are thinking about capital, growth, and financial resilience in 2026:

• Small business owners are largely self-funded: Personal savings is the most common funding source, cited by 67% of respondents, followed by credit cards at 38% and bank loans at 22%. Formal programs like SBA loans and home equity loans trail significantly behind, at 11% and 7% respectively.
• Economic anxiety is real, but the impact varies by generation: 78% of respondents say they are concerned about the current economic environment. On trade policy, 55% of millennials say tariffs have caused them to scale back investments, compared to 48% of Gen X and just 34% of baby boomers.
• Growth expectations are high, but financial resilience is unequal: 68% of small business owners expect their business to grow in 2026. Yet male owners report substantially higher confidence across every measure of financial stability, including surviving a downturn (62% of men vs. 45% of women), covering one month of operating costs in an emergency (72% vs. 56%), and maintaining predictable revenue for the next 6 to 12 months (55% vs. 38%).
• Rising costs are the biggest growth barrier across the board: Rising costs of goods and materials top the list for all respondents at 20%, climbing slightly to 22% among homeowners, with market uncertainty close behind for both groups.
• Home equity is largely untapped, but younger owners are open to it: Flexibility and fast access to funds are the top draws of a home equity product for small business owners, each cited by roughly 30% of respondents. Yet 25% say they would not consider it at all, a figure that rises from 19% among millennials to 40% among baby boomers.

"Small business owners are resilient by nature, but finding capital that keeps pace with that resilience is the real challenge," said Jennine, a Minnesota small business owner and homeowner. "Flexible, accessible funding is not always easy to come by. For me, home equity was the answer."

Read the full report here.

Methodology
Hometap surveyed 1,000 small business owners in the U.S. ages 18+ through AYTM in April 2026.

About Hometap
Founded in 2017, Hometap is a Boston-based fintech company on a mission to make homeownership less stressful and more accessible. Starting with its industry-leading home equity investment product, the company has helped over 25,000 homeowners across the U.S. access their home equity without taking on additional monthly payments or selling their home. Hometap expanded its suite of innovative financial products and services in 2022, introducing a centralized dashboard that enables homeowners to easily track their home equity, receive guidance and support from experts, and protect and grow the value of their home. Learn more at hometap.com.