Regional banking experts say communication and planning critical for small businesses 

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Local financial experts say uncertainty remains a defining challenge for small- and mid-sized businesses, but strategic planning and strong banking relationships can help companies weather the current economic climate. 

Adam Bickel, senior vice president and director of Business Banking for Five Star Bank, said elevated interest rates, rising operating costs and ongoing labor shortages are continuing to pressure margins, forcing business owners to make more deliberate decisions around hiring, investment and growth. 

“This is the first time I’ve seen such uncertainty over whether rates will go up and down be so strong,” said Bickel, who has worked in business banking for two decades. 

According to the U.S. Small Business Administration, small businesses employ nearly 46% of the nation’s private-sector workforce, making their performance critical to regional economies like Rochester’s, where small and midsize employers drive much of the area’s job growth and investment. 

Bickel said many businesses are responding with a more cautious and disciplined approach to expansion, focusing on sustainable growth rather than aggressive scaling. That includes tighter oversight of cash flow and margins, more frequent forecasting and selective investments in efficiency and automation. 

He noted that sectors including professional services, skilled trades, healthcare and portions of manufacturing are navigating the economic headwinds more successfully, while retail and hospitality businesses continue to face greater challenges. 

At the same time, Bickel said demand for business lending remains steady, particularly for lines of credit that provide companies with flexible access to cash as they manage uncertainty. 

Labor shortages are also continuing to reshape hiring strategies, with many businesses operating leaner teams while increasing investments in employee training and targeted outsourcing. 

Bickel encouraged business owners to maintain close communication with their banking partners, noting that a clearer understanding of a company’s operations and financial goals allows banks to identify funding opportunities and programs that may support long-term growth. 

“Disclosing the full scope of their operations helps us with the ability to plan,” Bickel said. “There are some programs we know of that may be game changers for them and help them hit their goals.” 

Timothy Jones, executive vice president and chief lending officer at Genesee Regional Bank, said maintaining open communication with banking partners can be critical for small businesses navigating economic uncertainty, noting banks are often aware of federal, state and county programs that may provide support. 

Jones said the bank has remained disciplined in its lending practices and has seen many businesses take a more cautious approach to expansion projects and major equipment purchases amid elevated interest rates. 

To help manage challenging conditions, he encourages business owners to evaluate where price increases may be appropriate, reduce operating costs when possible and work with vendors to negotiate more favorable terms that could ease cash flow pressures. 

Despite current headwinds, Jones remains optimistic about the Rochester-area business climate, citing the region’s long history of innovation, strong educational institutions and abundant water resources as advantages that continue to attract emerging industries. 

“Our region has opportunities,” Jones said, emphasizing the importance of a thoughtful and measured approach. 

He also expressed hope that leaders at the national, state and local levels recognize the importance of supporting small businesses. 

“Small businesses are economic engines,” he said. “I hope everyone can see that.” 

According to Keith Cleary, senior vice president and director of business banking at ESL Credit Union, the small businesses that tend to succeed during difficult economic periods are the ones that stay proactive and are prepared. 

“They may not be able to control the issue, but they can control how they act,” Cleary said, emphasizing the importance of understanding the fundamentals of a business and identifying potential challenges before they escalate. 

Cleary stressed that transparency is essential, not only with employees and customers, but also with vendors and financial institutions. He noted that maintaining open communication with banking partners early can create more opportunities for support and solutions before problems become more serious. 

“Relationships are built between transactions,” he said. 

He also encouraged small business owners to pay close attention to indicators such as the strength of their sales pipeline and whether customers are paying invoices on time, noting both can serve as early warning signs of financial strain. 

Despite ongoing economic pressures, Cleary said Rochester-area businesses continue to demonstrate resilience. He pointed to continued investment and development activity throughout downtown Rochester and surrounding suburbs as encouraging signs for the region’s economic outlook. 

“Despite the challenges, we are seeing a considerable amount of investment in Rochester and the surrounding areas,” he said. 

Mary-Ammielle Stone, M&T Bank Business Banking Regional manager for Rochester, said funding to local companies through the Small Business Administration program remains robust. 

Such lending ranges from traditional funding options, including Express Loans, to newer offerings, such as the MARC (Manufacturers’ Access to Revolving Credit) program—a specialized 7(a) loan product designed to provide small manufacturers with flexible working capital of up to $5 million. 

While the proposed FY2027 federal budget includes a double-digit decrease in year-over-year SBA funding, Stone said she is not overly concerned, noting regional businesses continue to have access to a variety of funding sources to meet their needs. 

She said small businesses continue to face challenges including difficulty finding qualified workers, interest rate volatility and fluctuating energy costs. Still, those companies remain key drivers of economic activity and job creation across the region and have proven resilient and adaptable. 

“There are headwinds, but we have a strong foundation here,” Stone said, stressing the importance of working with a team of advisors to help ensure success. “Relationship banking is more important now than ever.” 

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