Small business earnings rose by nearly $5,000 in February despite declining revenues, according to Biz2Credit’s latest Small Business Earnings Report.

The report found that average monthly earnings climbed to $37,100, up from $32,300 in January. However, revenues fell by $130,200 to an average of $627,900, while expenses declined by an even steeper $135,000 to $590,800, contributing to the overall earnings increase.

“Small businesses are navigating economic uncertainty in early 2025,” said Rohit Arora, CEO and co-founder of Biz2Credit. “A new administration and potential tariff impacts have caused some concern, leading to a slight dip in optimism. However, February’s inflation slowdown to 2.8% is encouraging for business owners who have struggled with rising costs.”

Consumer spending also slowed, marking its first decline in nearly two years, which contributed to the drop in small business revenues, according to the report.

Arora advised small business owners to closely monitor Federal Reserve policy changes, particularly regarding interest rates. Lower rates could reduce borrowing costs and make financing more accessible.

“Many experts predict interest rate cuts this year, which would lower the cost of capital for small businesses,” Arora said. “With labor and other input costs still rising, this could be an opportunity for businesses to secure more favorable funding.”

The Biz2Credit report is based on data from tens of thousands of small and midsized businesses that applied for financing through the company’s online platform. The data offers insight into the financial health of small businesses nationwide.

Key Findings for February 2025:

• Average Monthly Earnings: $37,100 (Jan. 2025: $32,300)
• Average Monthly Revenue: $627,900 (Jan. 2025: $758,100)
• Average Monthly Expenses: $590,800 (Jan. 2025: $725,800)

A year ago, small business earnings were significantly higher at $64,800, with average revenues of $651,500 and expenses of $586,700.

The full Small Business Earnings Report can be accessed on Biz2Credit’s website.