2011 U.S. Bank 2011 U.S.

Bank

Small Business Annual Survey

June 22, 2011

SURVEY OVERVIEW

About the Survey

BACKGROUND

The second annual U.S. Bank Small Business Survey monitors the attitudes, perceptions and outlook of small business owners across U.S. Banks 25 state national footprint.
APPROACH

Survey was conducted between April and May of 2011 among small business owners with less than $10 million in annual revenues
Overall national sample represents 1,004 small business owners within our footprint. In addition, an over-sample of 1,919 small business owners were surveyed in 11 select markets: Arizona, Northern California, Southern California, Colorado, Illinois, Minnesota, Missouri, Ohio, Oregon, Washington and Wisconsin

2011 U.S. Bank Small Business Annual Survey

SURVEY OVERVIEW

Key Findings
ECONOMIC OUTLOOK TECHNOLOGY

Things looking up but still feels like a recession

Social networking gaining influence, email relied on most

BUSINESS OUTLOOK

WORK / LIFE

Seeing some improvement, cautious about future

Time is of the essence, giving back to community a priority

CONCERNS

BANKING

Economic uncertainty the single biggest challenge

Perceptions improving as banks increase focus

2011 U.S. Bank Small Business Annual Survey

ECONOMIC OUTLOOK

Things looking up but still feels like a recession

Fewer think the U.S. economy is currently in a recession:
2010 2011 89%* 78%
Washington 6% say local economy is 6% say local economy is weaker than U.S. overall* weaker than U.S. overall* National Footprint National Footprint

More project the U.S. will still be in a recession next year (of those who think were currently in a recession):
2010 2011 75% 85%*
Northern California

Oregon

69% say local economy is 69% say local economy is weaker than U.S. overall* weaker than U.S. overall*

Minnesota Wisconsin

Illinois Colorado

Ohio

More view their states economic condition as weaker than the U.S. economy overall:
2010 2011 32% 41%*

Missouri Southern California Arizona 66% say local economy is 66% say local economy is weaker than U.S. overall* weaker than U.S. overall* 67% say local economy is 67% say local economy is weaker than U.S. overall* weaker than U.S. overall* Better than National Worse than National Neutral

14% say local economy is 14% say local economy is weaker than U.S. overall* weaker than U.S. overall*

* Significant at 95% confidence level. Small sample size. 2011 U.S. Bank Small Business Annual Survey

BUSINESS OUTLOOK

Seeing some improvement, cautious about future

More report revenue in line with or higher than last year:
2010 2011 55% 64%*
Washington National Footprint National Footprint

49%
expect revenues to be higher at this time next year; only 10% expect them to be lower
Oregon

20% report revenues 20% report revenues higher than last year higher than last year

39% report revenues 39% report revenues higher than last year* higher than last year* Minnesota Wisconsin

64%
describe the financial health of their business as good to excellent

Northern California Illinois Colorado Missouri Southern California Arizona Ohio

70%
expect the number of employees working for them to remain the same over the next 12 months

71% describe the financial 71% describe the financial health of their business health of their business as good to excellent* as good to excellent*

52% describe the financial 52% describe the financial health of their business as health of their business as good to excellent good to excellent

Better than National

Worse than National

Neutral

* Significant at 95% confidence level. Small sample size. 2011 U.S. Bank Small Business Annual Survey

CONCERNS

Economic uncertainty the single biggest challenge

Most significant challenge facing their business today:
1. Economic Uncertainty (27%) 2. Poor Sales (16%) 3. Federal Regulations (12%) 4. Competition (9%) 5. Taxes (8%)
Oregon Minnesota Wisconsin Washington 38% say economic uncertainty 38% say economic uncertainty is single biggest challenge* is single biggest challenge* National Footprint National Footprint

55%
think now is a tough time to start a business; 20% think its a good time
Northern California 15% have borrowed 15% have borrowed money or tried to borrow money or tried to borrow in the last 6 months* in the last 6 months*

Illinois Colorado Missouri

Ohio

20%
have borrowed money or tried to borrow in the last 6 months

Southern California Arizona

23% say economic uncertainty 23% say economic uncertainty is single biggest challenge is single biggest challenge

39% say economic uncertainty 39% say economic uncertainty is single biggest challenge* is single biggest challenge* Better than National * Significant at 95% confidence level. Small sample size. 2011 U.S. Bank Small Business Annual Survey Worse than National Neutral

TECHNOLOGY

Social networking gaining influence, email relied on most

More are using online social networking sites to make connections, find talent and market business:
2010 2011 32% 39%*
44% use social networking 44% use social networking to help their business to help their business National Footprint National Footprint 45% use social networking 45% use social networking to help their business to help their business

Washington

Social networking sites used most:

1. 2. (74%) (57%)
Northern California

Oregon

Minnesota Wisconsin 44% use social networking 44% use social networking to help their business to help their business

3. Industry Communities (26%) 4. (23%)

Colorado Missouri

Illinois

Ohio

Technologies they cannot do business without:

1. Email Computer (69%) 2. Mobile Phone (64%) 3. Landline Phone (51%) 4. Fax (31%) 5. Email Smartphone (26%)
* Significant at 95% confidence level. Small sample size. Note: Facebook, LinkedIn and Twitter are registered trademarks. 2011 U.S. Bank Small Business Annual Survey

Southern California Arizona 44% use social networking 44% use social networking to help their business to help their business 35% use social networking 35% use social networking to help their business to help their business Better than National Worse than National Neutral

WORK / LIFE

Time is of the essence, giving back to community a priority

66%
say they are almost always on the go
Washington National Footprint National Footprint

58%
think it is important that their business gives back to the community
Northern California Illinois Colorado Missouri Southern California Arizona 58% expect to take 58% expect to take less than 2 weeks of less than 2 weeks of vacation this year* vacation this year* 64% think it is important 64% think it is important that their business gives that their business gives back to the community back to the community Ohio Oregon 42% have plenty of time 42% have plenty of time for friends and family* for friends and family* 75% say theyre almost 75% say theyre almost always on the go* always on the go* Minnesota Wisconsin

50%
feel they have plenty of time for friends and family

48%
expect to take less than 2 weeks of vacation this year

Better than National * Significant at 95% confidence level. Small sample size. 2011 U.S. Bank Small Business Annual Survey

Worse than National

Neutral

BANKING

Perceptions improving as banks increase focus

More view banks as helpful to their business in the past year:
2010 2011 36% 43%*
Washington 12% more view their bank 12% more view their bank as helpful in the past year* as helpful in the past year* National Footprint National Footprint 14% more view their bank 14% more view their bank as helpful in the past year* as helpful in the past year*

More say their bank provides them with everything they need:
2010 2011 22% 32%*
Northern California

Oregon

19% more view their bank 19% more view their bank as helpful in the past year* as helpful in the past year*

Minnesota Wisconsin

Things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Know me and my business 3. Serve as a business partner 4. Be a financial mentor 5. Offer access to a network of small business owners
11% more view their bank 11% more view their bank as helpful in the past year* as helpful in the past year* Southern California Arizona

Illinois Colorado Missouri

Ohio

14% more say their 14% more say their bank provides them with bank provides them with everything they need* everything they need*

Better than National * Significant at 95% confidence level. Small sample size. Note: Net improvement based on 2010-11 percentage point difference. 2011 U.S. Bank Small Business Annual Survey

Worse than National

Neutral

SUMMARY

Washington Economic Outlook Business Outlook Concerns Technology Work / Life Banking
Washington

Minnesota
Wisconsin

Oregon Minnesota

Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Oregon Economic Outlook Business Outlook Concerns Technology Work / Life Banking
Northern California

Wisconsin Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Illinois Colorado Missouri

Ohio

Northern California Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Southern California Arizona

Illinois Colorado Economic Outlook Business Outlook Concerns Technology Work / Life Banking Missouri Economic Outlook Business Outlook Concerns Technology Work / Life Banking Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Southern California Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Arizona Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Ohio Economic Outlook Business Outlook Concerns Technology Work / Life Banking

Small

sample size.

Better than National

Worse than National

Neutral

2011 U.S. Bank Small Business Annual Survey

APPENDIX

National Demographics
Years in Business 1-2 yrs. 3-4 yrs. 5-9 yrs. 10-19 yrs. 20 or more yrs. 9% 9% 17% 27% 38% Type of Business Other Consulting Retail Sales Construction Other Services Real Estate Number of Employees 1 (no employees) 2-4 employees 5-9 employees 10-19 employees 20-39 employees 40-99 employees 100 or more employees 16% 32% 20% 15% 9% 5% 2% Finance / Accounting Computer Technology Manufacturing Wholesale Agricultural / Farming Health Care / Health Services Insurance Food Industry / Restaurant Hospitality Annual Revenue (2010) Less than $100K $100K-$199K $200K-$499K $500K-$999K $1.0M-$4.9M $5.0M or more 22% 15% 23% 14% 20% 5% Employment Type 100% Part-Time More Part-Time than Full-Time More Full-Time than Part-Time 100% Full-Time 4% 27% 39% 30% Transportation / Trucking 31% 11% 8% 6% 6% 6% 5% 4% 4% 4% 3% 3% 3% 2% 2% 2% Race White Asian Other African American Hispanic 87% 5% 3% 2% 2% Gender Male Female 58% 42% Age 18-24 25-34 35-44 45-54 55-64 65 and over 0% 7% 16% 26% 35% 14% Location Suburban Urban Rural 46% 33% 21%

* Percentages not totaling 100% are due to rounding. 2011 U.S. Bank Small Business Annual Survey

10

APPENDIX

Market Profiles

Arizona Northern California Southern California Colorado Illinois Minnesota Missouri Ohio Oregon Washington Wisconsin National*

* National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

11

MARKET PROFILES

Represents the local views of 69 small business owners

Arizona

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Feels more like a recession than rest of U.S.

A similar number think the U.S. economy is currently in a recession:
Natio nal Lo cal 78% 75%

Performance lagging other states, cautiously optimistic about the future

Fewer report revenues higher this year over last year:
Natio nal Lo cal 26% 20%

Economic uncertainty a bigger concern than other states

More think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 39% *

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 67%*

A similar number expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 47%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 55%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use lower than nation, email relied on most

Fewer use social networking to help their business:
Natio nal Lo cal 39% 35%

Time away from work more at a premium than other states

Fewer feel they have plenty of time for friends and family:
Natio nal Lo cal 50% 39%

Competition intensifying for the attention of small businesses

A similar number have stayed with their primary bank over the past year:
Natio nal Lo cal 93% 91 %

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

More expect to take less than 2 weeks of vacation this year:

Natio nal Lo cal 48% 58%

Top 3 things they wish they were getting more of from their bank:
1. Serve as a business partner 2. Adjust to meet my individual needs 3. Know me and my business

77%

67%

38%

32%

29%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 200 small business owners

Northern California

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Feels more like a recession than rest of U.S.

A similar number think the U.S. economy is currently in a recession:
201 0 201 1 86% 83%

Performing on par with national peers, more cautious about future

A similar number report revenue in line with or higher than last year:
Natio nal Lo cal 64% 67%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 29%

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 59%*

Fewer expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 42%

Fewer have borrowed money or tried to borrow money in the last 6 months:
Natio nal Lo cal 20%* 1 5%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use similar to nation, email relied on most

A similar number use social networking to help their business:
Natio nal Lo cal 39% 39%

Busy and on the go, time away from work is at a premium

A similar number say they are almost always on the go:
Natio nal Lo cal 66% 64%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 27% 35%

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

A similar number feel they have plenty of time for friends and family:
Natio nal Lo cal 50% 48%

Top 3 things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Know me and my business 3. Serve as a financial mentor

67%

61%

48%

34%

27%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 202 small business owners

Southern California

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up but feels more like a recession than rest of U.S.
Slightly fewer think the U.S. economy is currently in a recession:
201 0 201 1 86% 80%

Performance lagging other states, equally cautious about the future

Fewer report revenue in line with or higher than last year:
Natio nal Lo cal 64% 57%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 27%

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 66%*

A similar number expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 49%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 54%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, mobile phone relied on most
More use social networking to help their business:
Natio nal Lo cal 39% 44%

Time away from work more at a premium than other states

Fewer feel they have plenty of time for friends and family:
Natio nal Lo cal 50% 45%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 22% 33%*

Technologies they cannot do business without:

Mobile Phone Email Computer Landline Phone Fax Email Smartphone

More expect to take less than 2 weeks of vacation this year:

Natio nal Lo cal 48% 58%*

Top 3 things they wish they were getting more of from their bank:
1. Serve as a financial mentor 2. Know me and my business 3. Provide financial advice

65%

64%

50%

34%

30%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 200 small business owners

Colorado

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up, feels less like a recession than rest of U.S.
Fewer think the U.S. economy is currently in a recession:
201 0 201 1 84% 78%

Outperforming national peers, still cautious about the future

More report the financial health of their business as good to excellent:
Natio nal Lo cal 64% 71 * %

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 28%

Fewer view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 1 4% 41 * %

A similar number expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 47%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 55%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, email relied on most

More use social networking to help their business:
Natio nal Lo cal 39% 43%

Schedule balance and community approach in line with rest of country

A similar number say they are almost always on the go:
Natio nal Lo cal 66% 64%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 29% 39%*

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Email Smartphone Fax

A similar number think it is important that their business gives back to the community:
Natio nal Lo cal 58% 57%

Top 3 things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Know me and my business 3. Serve as a financial mentor

68%

66%

40%

26%

24%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 75 small business owners

Illinois

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Feels more like a recession than rest of U.S.

A similar number think the U.S. economy is currently in a recession:
Natio nal Lo cal 78% 79%

Performing on par with national peers, still cautious about the future
A similar number report the financial health of their business as good to excellent:
Natio nal Lo cal 64% 65%

Economic uncertainty less of a concern, more seeking capital

Fewer think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 23%

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 60%*

Fewer expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 44%

More have borrowed money or tried to borrow money in the last 6 months:
Natio nal Lo cal 20% 27%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use similar to nation, email relied on most

A similar number use social networking to help their business:
Natio nal Lo cal 39% 36%

Busy and on the go, time away from work is at a premium

A similar number say they are almost always on the go:
Natio nal Lo cal 66% 66%

Perceptions improving as banks increase focus on small businesses

A similar number view banks as helpful to their business in the past year:
Natio nal Lo cal 43% 40%

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

A similar number feel they have plenty of time for friends and family:
Natio nal Lo cal 50% 48%

Top 3 things they wish they were getting more of from their bank:
1. Serve as a business partner 2. Adjust to meet my individual needs 3. Know me and my business

76%

67%

56%

39%

32%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 199 small business owners

Minnesota

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up, feels less like a recession than rest of U.S.
Fewer think the U.S. economy is in a recession:
Natio nal Lo cal 78%* 70%

Outperforming national peers, still cautious about the future

More report revenues higher this year over last year:
Natio nal Lo cal 26% 33%

Economic uncertainty a bigger concern than other states

More think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 38% *

Fewer view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 6% 41 * %

A similar number expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 48%

Slightly fewer say now is a tough time to start a business:

Natio nal Lo cal 55% 51 %

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use on par with nation, email relied on most

A similar number use social networking to help their business:
Natio nal Lo cal 39% 38%

Schedule balance and community approach in line with rest of country

Slightly fewer say they are almost always on the go:
Natio nal Lo cal 66% 60%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 29% 41 * %

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

A similar number think it is important that their business gives back to the community:
Natio nal 58% 57%

Top 3 things they wish they were getting more of from their bank:
1. Know me and my business 2. Offer access to a network of small business owners 3. Provide financial advice

67%

55%

46%

24%

22%

Lo cal

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 166 small business owners

Missouri

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up, feels less like a recession than rest of U.S.
Slightly fewer think the U.S. economy is currently in a recession:
201 0 201 1 83% 77%

Performing on par with national peers, still cautious about the future
A similar number report revenues higher this year over last year:
Natio nal Lo cal 26% 26%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 25%

Fewer view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 25% 41 * %

Fewer expect revenues to be higher at this time next year:

Natio nal Lo cal 49% * 41 %

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 54%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, email relied on most

More use social networking to help their business:
Natio nal Lo cal 39% 43%

Devoting time to community more of a priority than rest of country

More think it is important that their business gives back to the community:
Natio nal Lo cal 58% 64%

Perceptions improving as banks increase focus on small businesses

More say their bank is providing them with everything they need:
201 0 201 1 22% 36%*

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

Slightly fewer say they are almost always on the go:

Natio nal Lo cal 66% 62%

Top 3 things they wish they were getting more of from their bank:
1. Serve as a business partner 2. Offer access to a network of small business owners 3. Provide financial advice

63%

61%

52%

33%

25%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 200 small business owners

Ohio

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up but feels more like a recession than rest of U.S.
Slightly fewer think the U.S. economy is in a recession:
Natio nal Lo cal 78% 74%

Performing on par with national peers, still cautious about the future
Slightly more report revenues in line with or higher than last year:
Natio nal Lo cal 64% 69%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 29%

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 61 * %

Slightly fewer expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 45%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 57%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, email relied on most

More use social networking to help their business:
Natio nal Lo cal 39% 44%

Schedule balance and community approach in line with rest of country

Slightly more say they are almost always on the go:
Natio nal Lo cal 66% 70%

Perceptions improving as banks increase focus on small businesses

More say their bank is providing them with everything they need:
201 0 201 1 23% 30%

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

Over half think it is important that their business gives back to the community:
Natio nal Lo cal 58% 53%

Top 3 things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Know me and my business 3. Serve as a business partner

68%

64%

51%

31%

21%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 182 small business owners

Oregon

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up but feels more like a recession than rest of U.S.
Slightly fewer think the U.S. economy is currently in a recession:
201 0 201 1 86% 80%

Lagging performance yielding a more cautious forecast

Fewer report revenues higher this year over last year:
Natio nal Lo cal 26% 20%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 27%

More view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 41 % 69%*

Fewer expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 43%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 57%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, email relied on most

More use social networking to help their business:
Natio nal Lo cal 39% 44%

Community focus similar to rest of country, time more at a premium

A similar number think it is important that their business gives back to the community:
Natio nal Lo cal 58% 60%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 22% 41 * %

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

Fewer say they have plenty of time for friends and family:
Natio nal Lo cal 50%* 42%

Top 3 things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Serve as a financial mentor 3. Be a business partner

72%

60%

47%

32%

19%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 200 small business owners

Washington

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up, feels less like a recession than rest of U.S.
Slightly fewer think the U.S. economy is currently in a recession:
201 0 201 1 87% 81 %

Outperforming national peers, still cautious about the future

Slightly more report revenues higher this year over last year:
Natio nal Lo cal 26% 30%

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 30%

Fewer view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 1 7% 41 * %

Slightly more expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 53%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 56%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use higher than nation, email relied on most

More use social networking to help their business:
Natio nal Lo cal 39% 45%

Schedule balance and community approach in line with rest of country

A similar number say they have plenty of time for friends and family:
Natio nal Lo cal 50% 51 %

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 23% 37%*

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

A similar number think it is important that their business gives back to the community:
Natio nal Lo cal 58% 60%

Top 3 things they wish they were getting more of from their bank:
1. Know me and my business 2. Adjust to meet my individual needs 3. Think big, act small

76%

62%

48%

32%

28%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the local views of 184 small business owners

Wisconsin

ECONOMIC OUTLOOK

BUSINESS OUTLOOK

CONCERNS

Things looking up, feels less like a recession than rest of U.S.
Fewer think the U.S. economy is currently in a recession:
201 0 201 1 86%* 75%

Outperforming national peers, still cautious about the future

More report revenues higher this year over last year:
Natio nal Lo cal 26% 39% *

Economic uncertainty the single biggest challenge

A similar number think economic uncertainty is the most significant challenge facing their business today:
Natio nal Lo cal 27% 30%

Fewer view their states economic condition as weaker than the U.S. economy overall:
Natio nal Lo cal 26% 41 * %

A similar number expect revenues to be higher at this time next year:

Natio nal Lo cal 49% 47%

A similar number say now is a tough time to start a business:

Natio nal Lo cal 55% 54%

TECHNOLOGY

WORK / LIFE

BANKING

Social networking use on par with nation, email relied on most

A similar number use social networking to help their business:
Natio nal Lo cal 39% 42%

Community focus similar to rest of country, time more at a premium

A similar number think it is important that their business gives back to the community:
Natio nal Lo cal 58% 60%

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 201 1 34% 44%

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax Email Smartphone

More say they are almost always on the go:

Natio nal Lo cal 66% 75%*

Top 3 things they wish they were getting more of from their bank:
1. Serve as a business partner 2. Offer access to a network of small business owners 3. Adjust to meet my individual needs

67%

57%

47%

26%

23%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey

Better than National

Worse than National

Neutral

MARKET PROFILES

Represents the national views of 1,004 small business owners

BUSINESS OUTLOOK CONCERNS

National

ECONOMIC OUTLOOK

Things looking up but still feels like a recession

Fewer think the U.S. economy is currently in a recession:
201 0 201 1 89%* 78%

Seeing some improvement, cautious about future

More report revenues in line with or higher than last year:
201 0 201 1 55% 64%*

Economic uncertainty the single biggest challenge

Most significant challenge facing their business today:
1. Economic Uncertainty (27%) 2. Poor Sales (16%) 3. Federal Regulations (12%) 4. Competition from larger businesses (9%) 5. Taxes (8%)

More view their states economic condition as weaker than the U.S. economy overall:
201 0 201 1 32% 41 * %

49%
expect revenues to be higher at this time next year; only 10% expect them to be lower

20%
have borrowed money or tried to borrow money in the last 6 months

TECHNOLOGY

WORK / LIFE

BANKING

Social networking gaining influence, email relied on most

More use social networking to help their business:
201 0 201 1 32% 39%*

Time is of the essence, giving back to community a priority

Perceptions improving as banks increase focus on small businesses

More view banks as helpful to their business in the past year:
201 0 36% 43%*

66%
say they are almost always on the go

58%
think it is important for their business to give back to the community
Email Smartphone

201 1

Technologies they cannot do business without:

Email Computer Mobile Phone Landline Phone Fax

Top 3 things they wish they were getting more of from their bank:
1. Adjust to meet my individual needs 2. Know me and my business 3. Serve as a business partner

50%
feel they have plenty of time for friends and family

69%

64%

51%

31%

26%

* Significant at 95% confidence level. Survey conducted April-May 2011. National represents U.S. Banks 25 state footprint. 2011 U.S. Bank Small Business Annual Survey