What the Blue Wave Means for Your Small Business
JOIN US for NSBA's Election Webinar Briefing | Nov. 04, 2026, 2:00 p.m. →
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While results from some races still have not been officially called, Democrats made significant gains to take control of both the House and Senate. As of early Wednesday morning, Democrats flipped seven states in Senate races to gain control of 54 seats including Texas, Maine, North Carolina, South Carolina, Ohio, Iowa and Kansas. In the House, Democrats flipped 27 seats and currently sit at 231 seats, bypassing the 218-seat threshold to take the majority. It is expected that the Democrats’ tally in the house will continue to grow, some predict to as much as 257.
While it is not uncommon for the party in power of the White House to incur losses during a midterm election, the fact that Democrats made such inroads in the Senate, particularly in states like Kansas, South Carolina and Texas is certainly noteworthy.
Here are some of the key races NSBA was watching yesterday and how they are likely to impact small business.
Senate
Maine: Called for Troy Jackson (D) resulting in Sen. Susan Collins (R) being ousted after 30 years in the Senate. Collins chairs Senate Appropriations Committee, which sets funding for the SBA and other small-business programs. Sen. Patty Murray (D-WA) is the top Democrat currently serving on Appropriations, however nothing is set in stone.
Ohio: Called for Sherrod Brown (D), ousting Sen. Jon Husted (R) who sits on the Senate Small Business and Entrepreneurship Committee. The make-up of that committee will change with added Democrats and different priorities in their oversight of the U.S. Small Business Administration.
Iowa: Called for Josh Turek (D), who fills Sen. Joni Ernst’s (R) open seat. Currently serving as Chair of the Senate Small Business and Entrepreneurship Committee, Ernst’s retirement and Democrats win clears the way for new leadership. Sen. Ed Markey (D-MA) is the current Ranking Member and a possible candidate for Chair.
House
PA-8: Called for Paige Cognetti (D) over incumbent Rep. Rob Bresnahan (R) who sits on the House Small Business Committee, opening a seat on that committee.
PA-1: Called for Bob Harvie (D) who ousted Rep. Brian Fitzpatrick (R). Rep. Fitzpatrick sits on Ways and Means and its Tax Subcommittee which has important jurisdiction over key small-business taxes provisions.
There are a handful of other races that have not yet been called in the House, but that could have an impact on small-business policy, including:
AR-2: French Hill (R) vs. Chris Jones (D). Rep. Hill currently serves as Chair for the House Financial Services Committee, which oversees banking, lending and small businesses’ access to capital.
CA-45: Rep. Derek Tran (D) is the incumbent and sits on the House Small Business Committee. He currently is up against Chuong Vo, however only about half of the votes have been counted.
Exactly what happens with leadership on the House Committee on Small Business is still up in the air given that current Ranking Member Nydia Velazquez (D) is retiring. The second highest ranking Democrat on the Committee is Rep. Morgan McGarvey (D-KY) who handily won his race. Current Committee Chair Roger Williams (R-TX) also won his race and would be the logical incoming Ranking Member starting next year.
The Democratic takeover in the House and Senate will undoubtedly change the agenda, however bipartisanship is still going to be necessary to gain President Trump’s signature on any legislation passed.
NSBA President and CEO had this to say:
“NSBA stands ready to work with returning and new Members of Congress and their staff to begin setting the small-business agenda, and NSBA is already hard at work crafting what will be our priorities for the 120th Congress.
“I hear daily from our members who are finding it more and more difficult to get fair and affordable financing; who struggle to provide competitive benefits packages and health insurance to their employees; who are facing major cost increases when it comes to energy; who have been hamstrung by tariffs causing an inability to procure goods; who want a level playing field when it comes to accessing federal contracts.
“There are 70 million people in this country who run or work for a small business. It is critical that lawmakers seek every opportunity to provide small business the tools we need to help grow the U.S. economy. We are here and ready.”
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JOIN US for NSBA's Election Webinar Briefing | Nov. 04, 2026, 2:00 p.m. →