U.S. Business Applications for May 2026: Trend Remains Solid

By SBE Council at 17 June, 2026, 8:54 am

by Raymond J. Keating –

The latest business applications numbers from the U.S. Census Bureau offered a mixed story for May, with the overall trend, however, remaining healthy.

Total business applications in May increased by 3.7 percent to 523,971 (seasonally adjusted). At the same time, high-propensity business applications declined slightly – by 0.3 percent to 146,555.

As explained by the Census Bureau, business applications are applications “for tax IDs as indicated by applications for an Employer Identification Number (EIN) through filings of the IRS Form SS-4,” and included are high-propensity applications, i.e., applications with a high likelihood of becoming businesses with employees. So, while not actual business launches, applications are important in that they provide an indicator for future actual business formations.

The following two charts show the trends in total and high-propensity applications.

Total Business Applications: Trends 2024-2026

Source: Federal Reserve Bank of St. Louis, FRED

High-Propensity Business Applications: Trends 2024-2026

Source: Federal Reserve Bank of St. Louis, FRED

In the end, while monthly changes certainly warrant watching, especially within the context of larger economic and policy factors, the overall trend is the key takeaway, and the fact is that both total and high-propensity applications remain above the pre-pandemic trend.

As for policymakers at the federal, state and local levels, they should be taking in this data with the idea of how to best provide relief from assorted governmental burdens in order to provide the best climate for entrepreneurs to turn those applications into actual businesses.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.