Happy Easter Sunday!

1. Feature: Will Your SMB Beat the 2025 Tariff War? (5 min read)

2. Dear TCoL: Finding Reasonable Funding Fast

3. From the Archive: LLC Insurance 101: A New Owner’s Guide to Essential Coverage Read it here.

Take today to level out. A fresh week’s around the corner.

-TCoL

Missed our last feature article? Who Recommends, Hires, and Writes Checks for Your Products? Read it here.

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In 2025, tariffs—145% on Chinese goods, 10-25% on Canadian and Mexican imports—are squeezing small and medium-sized businesses (SMBs). Forty-four percent of SMBs lack financing access—and 13% of them face closure within two years, an 86% higher risk than their funded peers (PYMNTS Intelligence, 2025).

For The Co. Letter’s 25,000+ SMB readers, this isn't just about survival. It's about making smart moves to ensure your business isn’t just another casualty. This Sunday feature breaks down why SMBs stumble on capital, gives you a step-by-step funding plan, and highlights affordable tools to make sure you come out stronger—not smaller.

Why Financing Is a Growth Engine

Tariffs sting. A Florida contractor faces a 25% steel cost spike. A boutique importing Canadian fabrics scrambles under 10% levies. Without capital, you're forced to either raise prices (and risk losing customers) or eat losses (and risk losing your business).

Forty percent of SMBs now report tighter loan access (Vistage, 2025). Financing isn’t optional anymore. It’s the bridge from "hanging on" to "pulling ahead." Capital fuels automation, local sourcing, and marketing strategies that can catapult you ahead of competitors stuck in survival mode.

New LLCs that grab smart funding today can turn today's chaos into tomorrow's dominance.

The Root Cause: Chasing Money, Ignoring Revenue

Problem: Too many SMBs chase financing without knowing who actually pays them. They grab high-cost loans or max out credit cards that don't match their business model—a sure way to survive today but sink tomorrow.

Example: A contractor borrows $50,000, in part to fund $10,000 of expenses at a national trade show where none of their real buyers show up—just other contractors. For a Florida seawall contractor, only 10-20% of contracts come from homeowners; 80% stem from general contractors, architects, or property managers via bid platforms or local AIA events. Spending $10,000 on a national expo with no payers wastes cash that could fund tariff-hit steel costs (e.g., $8,000 for 20% price spikes). It’s like throwing money off a bridge and praying it floats back.

Solution: Audit your revenue first—every referral, every invoice—before chasing funding. Align financing with payers, not hopes. If tariffs have hiked your steel costs 20%, that's your funding mission—not another "emergency credit card" cycle.

Step-by-Step: Funding Growth Without Regret

Audit Revenue and Tariff Hits:

• Review 6-12 months of invoices or CRM data to spot tariff cost spikes (e.g., 15% on steel, $10,000 gap).

• Map revenue sources (e.g., 70% from contractors via bid platforms, 20% from architects). Use free tools like HubSpot CRM to track in 15 minutes weekly.

Define Specific Growth Goals:

• Need $30,000 to avoid raising prices? $100,000 for automation?

• Tie every dollar to a revenue-generating action.

Pick Tailored Lenders:

• Urgent cash? Non-bank lenders like Fundbox offer same-day funding.

• Bigger bets? Banks like Wells Fargo offer steadier terms (7-14% rates).

• Compare 75+ lenders instantly with Lendio (free).

Explore Local Funding:

• Community banks and credit unions (like Navy Federal) often approve faster.

• State programs like SSBCI pumped $3.1B to SMBs recently—fresh funds are still available.

Vet Loan Terms:

• Spend $200-$500 for a lawyer to check terms.

• Look for hidden liens, fees, and deposit traps.

• One firm dodged a 50% APR landmine by spending an hour on legal review.

Affordable Tools That Make Financing Smarter

These tools simplify funding searches and planning, each taking under 30 minutes to set up:

• Nav (Free/$49.99 monthly): Matches loans to revenue, credit in 10 minutes. Free lists options; Premium boosts approvals.

• QuickBooks (Free trial/$30 monthly): Tracks tariff impacts, cash flow shifts in 20 minutes.

• Lendio (Free): Compares dozens of offers fast in 15 minutes.

• FundersClub (Free consult/$ varies): Connects startups with growth capital in 20 minutes.

• GrowEasy (Free/$99 monthly Pro): AI loan matching tuned for SMB needs in 10 minutes.

Smart tools don’t replace smart owners. But they sure make it easier to steer the ship through stormy waters.

Practical Tips to Fund Smart, Not Fast

• Log Payers Weekly: Use free CRMs like HubSpot to track your real buyers in 15 minutes. If 70% are contractors, fund bid tools, not expos.

• Vet Events Ruthlessly: If your top payers aren't there, neither should you be. Check attendee lists on event sites in 10 minutes. Host a $100 contractor meetup instead.

• Model Tariff Costs Monthly: Budget tariff gaps in QuickBooks (20 minutes) and borrow only what fills them—e.g., $12,000 for 20% steel hikes, not $40,000.

• Pitch Three Lenders Always: Loan rates vary. Compare via Lendio in one hour to save thousands.

• Tap SSBCI Fast: Search "SSBCI [state]" (10 minutes) and secure low-interest money before it's gone.

• Lawyer Up Cheap: Spend $200 on a lawyer to spot loan traps in 30 minutes.

• Learn Targeted: Spend 10 minutes weekly on SBA’s ‘Funding Programs’ page (sba.gov/funding-programs) for loan tips tailored to SMBs, like SSBCI updates. Skip generic finance blogs.

One hour of planning beats six months of emergency calls.

Bottom Line

Will your business beat the tariff war of 2025? It depends on whether you fund smart—or wait too long. In chaos, the calm planners win.

Disclaimer: This is not legal or financial advice; consult a professional.

Dear TCoL: Finding Reasonable Funding Fast

Question: I’m a year into my Georgia LLC, selling custom furniture. Tariffs are killing me—25% on Chinese wood is $15,000 I don’t have. Banks want two years’ history, and 60% APR loans feel like scams. Where do I get quick cash without losing my shirt?

Answer:

Research national + local sources, like:

• Lendio (Free): Compare 75+ lenders in an hour. Look for 8-12% APR; Fundbox fits new LLCs (4.66% starting, 6+ months).

• Georgia SSBCI: Search “Georgia SSBCI loans” (10 min) for state funds via LiftFund. Rates start at 5%; new businesses qualify.

• Credit Unions: Peach State FCU funds startups at 6-10%. Show your LLC’s revenue; approval takes days.

Right now, the Trump Administration is encouraging community banks and credit unions to loosen SMB lending standards—use it to your advantage while conditions favor fast approvals.

Always get a lawyer to do a quick check for hidden loan terms. Skip the national expos—target Atlanta designers directly.

Move quickly, but not desperately—good funding exists if you know where to look.

Have an interesting business question and need a free bit of advice? Send your question to [email protected]. No confidential info, please!