ONE BIG BEAUTIFUL BILL ACT POISED TO DRIVE MIDDLE MARKET GROWTH: 89% OF COMPANIES EXPECT SIGNIFICANT LONG-TERM BUSINESS IMPACT

Rhea-AI Summary

KeyBank (NYSE: KEY) released a Middle Market Snapshot from October 2025 surveying 392 executives of businesses with $25M–$1B revenue about the One Big Beautiful Bill Act (OBBBA).

Key findings: 60% report familiarity with OBBBA, 86% expect a moderate-or-greater U.S. economic impact in 12 months, 60% expect meaningful business benefits within two years, and 89% foresee at least one significant long-term impact. Top planned actions within 12 months include technology upgrades (68%), domestic R&D (65%), and supply-chain changes (63%).

Positive

• 89% of companies expect at least one significant long-term impact
• 68% plan technology upgrades or process automation within 12 months
• 65% plan to increase domestic R&D investment
• 59% expect increased ability to invest in growth and expansion
• 59% cite improved cash flow via accelerated depreciation and incentives

Negative

• 60% familiarity implies 40% of middle market firms are not familiar
• 60% expect meaningful benefit in two years, leaving 40% uncertain

Insights

Middle Market Policy Analyst

Survey shows broad middle‑market optimism about OBBBA with firms planning near‑term investment and cash‑flow changes.

The report, led by KeyBank, finds high familiarity with OBBBA and concrete action plans: 60% familiar, 86% expect a moderate+ economic impact in the next 12 months, and 89% foresee at least one significant long‑term business effect. The dominant expected outcomes are increased investment capacity and improved cash flow via depreciation and incentives, which directly link policy provisions to capital allocation decisions.

Dependencies and risks are clear and stated: realized benefits hinge on how companies execute upgrades and on the specifics of enacted provisions. Plans to prioritize technology (68%), R&D (65%), supply‑chain changes (63%) and adjusted leverage (59%) reflect tactical responses rather than guaranteed outcomes. Monitor actual enactment details and near‑term spending decisions for confirmation of expressed intent.

Watch for measured signs over the next 24 months: announced capex programs, shifts in reported depreciation schedules, and documented changes in debt strategy. Also note KeyCorp�s balance‑sheet context ($187 billion assets as of September 30, 2025) which supports its access to middle‑market clients. Based strictly on the disclosed survey results, this is a net positive signal for middle‑market investment sentiment and planning.

KeyBank survey finds seven-in-ten companies plan to capitalize on OBBBA provisions

CLEVELAND, Nov. 20, 2025 /PRNewswire/ -- KeyBank (NYSE: KEY) today released the results of its Middle Market Snapshot Report which was conducted in October 2025 to gauge middle market reception of the One Big Beautiful Bill Act (OBBBA). The survey polled nearly 400 executives of middle market businesses with annual revenues ranging from $25 million to $1 billion and found that companies are highly familiar with the bill's provisions and expect substantial impacts on both the U.S. economy and their individual businesses.

Familiarity High, Expectations Higher:

• 60% of middle market companies report being familiar with OBBBA provisions.
• 86% expect the bill's provisions to have a moderate or greater level of impact on the U.S. economy in the next 12 months, with 45% anticipating significant impact.
• 60% expect a meaningful positive impact on their business in the next two years.

Long-Term Impacts Anticipated:

• 89% of companies anticipate at least one significant long-term impact from OBBBA on their business.
• The top three expected long-term impacts are:
  • Increased ability to invest in growth and expansion (59%)
  • Improved cash flow through accelerated depreciation and capital expenditure incentives (59%)
  • Greater certainty and stability in financial planning and forecasting (53%)

Technology Leads Strategic Priorities Post-Enactment:

• Within 12 months of OBBBA enactment, middle market companies plan to prioritize:
  • Upgrading technology or investing in process automation (68%)
  • Increasing domestic R&D investment (65%)
  • Expanding/reconfiguring supply chain (63%)
  • Adjusting debt financing or leverage strategy (59%)
  • Accelerating capital expenditures (58%)
  • Enhancing employee benefits (57%)
  • Investing in clean energy projects (55%)

Ken Gavrity, President of Key Commercial Bank commented: 
"The OBBBA represents a pivotal moment for America's middle market companies. Our survey shows that business leaders aren't just aware of these policy changes – they're already planning how to leverage them for competitive advantage. This proactive stance demonstrates the agility and strategic thinking that makes the middle market such a vital engine of economic growth."

"What's particularly encouraging is the optimism we're seeing with the middle market segment," Gavrity added. "These companies recognize opportunities to accelerate innovation, strengthen their balance sheets, and position themselves for long-term success. We're committed to partnering with them every step of the way."

Methodology
KeyBank's Middle Market Snapshot survey provides a real-time read on what's shaping the middle market. The latest report surveyed 392 owners and executives of businesses with annual revenues between $25 million and $1 billion in October 2025.

About KeyCorp
In 2025, KeyCorp celebrates its bicentennial, marking 200 years of service to clients and communities from Maine to Alaska. To learn more, visit KeyBank Heritage Center. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at September 30, 2025.

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.

View original content to download multimedia:https://www.prnewswire.com/news-releases/one-big-beautiful-bill-act-poised-to-drive-middle-market-growth-89-of-companies-expect-significant-long-term-business-impact-302622297.html

SOURCE KeyBank

FAQ

What did KeyBank's October 2025 survey find about OBBBA impact on middle market companies (KEY)?

The survey of 392 executives found 89% expect at least one significant long-term impact from OBBBA.

How many middle market companies are familiar with OBBBA according to KeyBank (KEY) survey?

60% of surveyed middle market companies reported being familiar with OBBBA provisions.

Which actions will middle market firms prioritize within 12 months of OBBBA enactment (KEY)?

Top priorities are technology upgrades (68%), domestic R&D (65%), and supply-chain changes (63%).

What percentage expect OBBBA to affect the U.S. economy in 12 months per KeyBank (KEY)?

86% expect a moderate-or-greater level of impact on the U.S. economy in the next 12 months.

How many firms expect improved cash flow from OBBBA tax incentives (KEY)?

59% cited improved cash flow through accelerated depreciation and capital expenditure incentives.

How large was the survey sample in KeyBank's Middle Market Snapshot (KEY) and when was it conducted?

KeyBank surveyed 392 owners and executives in October 2025.