2026 Mid-Year Snapshot: Adapting and Moving Forward

Early in the year, small business owners across our region were planning for tighter margins. Through a partner survey with the Federal Reserve Bank of Minneapolis, many reported flat or declining revenue projections, rising costs, and most recently, shared concerns about how price-conscious customers might shape the summer season.

And yet, six months in, we are seeing that instead of pulling back, they’ve adjusted.

Entrepreneur Fund clients are adapting. Expanding into new markets. Strengthening operations. Asking better questions about cash flow, staffing, and long-term sustainability. Even in a cautious economic environment, the drive to innovate, improve, and grow hasn’t slowed. It’s become more intentional.

Capital in Action: Growth, Expansion, and Ownership Transitions

In the first half of the year, our team supported 949 businesses and 1,222 entrepreneurs across 29 counties in Minnesota and Wisconsin, meeting them where they are with tailored capital, trusted guidance, and strong partner connections designed to help them move forward with confidence.

Access to right-fit capital remains a critical need, especially for businesses moving beyond early stages and working to strengthen their long-term viability. From January through June, we deployed $8.3 million in capital ($6.25M in Minnesota and $2.1M in Wisconsin) across 52 loans, with an average loan size of $160,000.

Small business owners used this capital to enter new markets, develop new product lines, expand facilities, upgrade equipment, and facilitate ownership transitions that keep long-standing local businesses rooted in their communities.

At the same time, smaller, flexible capital continues to play a critical role. We approved 21 microloans totaling $712,000, supporting businesses with working capital to navigate day-to-day operations, adapt to new requirements, build inventory, and update systems or equipment that enhance the customer experience and improve efficiency.  

In May, our team was recognized for our microloan efforts at the Wisconsin Lenders Conference as the Microlender of the Year (by volume), approving 19 microloans in Wisconsin totaling $437,432 in 2025.

This spring also saw an intentional focus on strengthening our regional food ecosystem. Through the Rural Field to Market Grant, we awarded $450,000 to 26 Minnesota food and farm businesses, supporting projects that will increase production capacity, improve efficiency, and strengthen pathways to market. Backed by the Wells Fargo Foundation, this program’s impact goes beyond supporting individual businesses; it strengthens local supply chains and expands local food access.

Beyond Capital: Real Conversations on Cash Flow, Staffing, and Strategy  

As we’ve known since our inception in 1989, capital alone isn’t enough to strengthen businesses. Our team delivered 2,500 hours of advising, including more than 560 hours focused on business management support. From cash flow and financing strategies to marketing, succession planning, human resources, and customer relations, these conversations are helping business owners build stronger, more resilient operations.

We’re also seeing business owners invest in themselves through our educational programs. So far this year, we’ve delivered five programs across three different offerings, engaging 26 entrepreneurs through Mastermind groups, Profit Mastery workshops, and our Be Strategic course. These programs create a space for business owners to step back, learn from peers, and build the financial and strategic skills needed to navigate uncertainty with clarity.  

Connecting the Region’s Business Leaders & Strengthening Partnerships

And just as important as the work we do directly with business owners is the strength of the ecosystem around them.

In May, we brought together more than 200 regional leaders at the Distinction Awards, celebrating six businesses that reflect the range of innovation and growth across our region, from early-stage startups to established manufacturers and nationally scaling companies. During the event, Wells Fargo announced a $600,000 philanthropic investment to expand our advisory services and innovative capital offerings, reinforcing what we know to be true: strong partnerships unlock stronger outcomes.

Beyond our own events, our team attended (and in some cases presented at) more than 60 conferences, forums, and partner gatherings in just six months, keeping us connected to what business owners are experiencing in real time and strengthening the partnerships it takes to respond effectively.

The Next Six Months

We enter the second half of the year with momentum and clear focus.

Demand for both capital and guidance remains strong, and we are continuing to invest in our capacity to meet it. We’re growing our team of lending advisors, offering additional programs across the region, and deepening partner relationships to ensure business owners have access to the tools and support they need at every stage.

We’re also expanding our leadership. As our work continues to grow, we’ll be inviting new board members to join us, bringing additional perspective, expertise, and community connection to strengthen the path forward.

While uncertainty continues to shape the economic landscape, the response from business owners is clear: they’re adjusting, refining, and moving forward with intention.

They’re not settling. And neither are we.

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