How to Prepare for Tariff Refunds and How Financing May Help After Ruling

A Complicated Affair

Despite the SCOTUS ruling, the Tariff situation remains deeply complicated. Certain tariffs will remain in place, at least temporarily, because SCOTUS only ruled that the tariffs Trump imposed based on IEEPA were illegal. For now, the Trump Administration is still imposing tariffs based on various trade act laws.

For those who are understandably confused, here is a rundown of the Trump Administration's response and the new tariffs that are currently being imposed as of the publication date of this article. All of tariffs are temporary until the administration can make a compelling case to the courts that they should remain in place:

• After the SCOTUS ruling, the Trump Administration immediately imposed a 10% tariff on all imported goods under Section 122 of the Trade of 1974 that will be in effect for at least 150 days.

• Under Section 232 of the Trade Expansion Act of 1962, the tariffs on steel (25%), aluminum (50%) will remain in place.

• Under Section 301 of the Trade Act of 1974, Tariffs on imports from China and Nicaragua remain unaffected by the ruling.

• Tariffs on foreign vehicles were not affected by the SCOTUS ruling as they were imposed before Liberation Day. The legality of those tariffs, however, is still being determined by lower courts, they still remain in effect. Those are:

1. A 25% tariff on imported passenger vehicles (SUVs, sedans, light trucks) and key components (engines, transmissions)
2. 10-15% universal import duty on foreign made vehicles, although it does not stack on top of the existing 25% auto-specific tariffs.

Scant Information on Refunds

Recent announcements from both United Parcel Services (UPS) and the U.S. Customs and Border Protection (CBP) agency have stated that both are currently setting up systems in which businesses that paid tariffs can get refunds. SCOTUS, as part of its 6-3 ruling, ordered the U.S. to give refunds to the businesses that paid tariffs imposed after Liberation Day. The Trump administration is facing multiple lawsuits from various companies demanding refunds on the tariffs.

The U.S. Customs and Border Protection Agency (CBP) gave scant details in its announcement, only stating that the agency “is ready to implement current and any forthcoming executive actions as directed by the President.” The agency said it needed 45 days from the SCOTUS' ruling to implement a refund system. The Trump administration has yet to announce any information on refunds. UPS said in an article on its website that “Government authorities have not yet provided official guidance, eligibility criteria or filing procedures.”

Right now, small business owners that paid the Liberation Day tariffs may want to take a few steps to prepare for refunds:

1. Collect and document all receipts and other proof of the tariffs that were paid.
2. If they don't have one already, they may want to set up ACH payment systems so when the refunds are available, they can easily collect them, as the refunds could be paid that way.
3. Confirm that their business was the “importer of record” that directly paid the tariffs, as they are the primary party who may be eligible for refunds. Small business owners may wish to work with an attorney to do this.
4. Small businesses may want to hire an attorney to work with a customs broker to file administrative requests to protect their right to a refund, even while the process is being finalized.

Can Financing Help Offset Tariffs?

The tariff policy remains confusing and has caused havoc for many small businesses, particularly in the retail, wholesale, manufacturing, and construction sectors where importing goods are crucial to the businesses' success. Other such as electronics, toys, apparel, and wine have also been deeply affected by the tariff policies,

In many cases, however, small businesses can use targeted financing strategies to ease the pricing pressure caused by the ever-changing tariff policies being set by the Trump Administration and the courts. Here are some financing tools that may help:

1. Term Loan. A short- (6 to 24 months), intermediate- (24 months to 5 years) or long-duration term loan can help your business get through the pricing volatility caused by tariffs. A term loan gives you a lump sum of money that is paid back (often monthly but sometimes weekly or quarterly) with interest. The money from a term loan can help keep your business running if sales slow due to necessary price increases or if your profitability slows due to pricing pressure caused by tariffs. These are offered by both traditional banks and online lenders.

2. Business Lines of Credit. A business line of credit offers flexibility to small businesses facing price pressures due to tariffs. A business line of credit offers a small business a predetermined amount of credit that can be drawn upon at any time. Businesses only pay interest on the amount borrowed. This flexibility can come in handy during the periods when a small business must adjust when new tariffs are announced or courts strike down existing tariffs.

3. Revenue-Based Financing (RBF). Revenue-based financing can be a valuable tool to help your business stay afloat during tough economic times, especially if your business has a strong sales history. While it tends to be more expensive than other types of financing, revenue-based financing can help stabilize your cash flow and keep your business during volatile economic periods caused by tariffs.

If you're confident that your customer base will remain loyal even after price increases caused by tariffs, an RBF arrangement can help. Unlike a traditional small business loan with fixed monthly payments, revenue-based financing is more flexible.

4. Equipment Financing. If your small business relies on heavy machinery to operate and you're worried about rising equipment costs due to tariffs, equipment financing could be a good solution. Equipment financing is essentially a loan from a third-party lender to help you purchase the equipment your business needs, whether it's a CNC processing machine, a tractor/trailer or even office computers and furniture. Equipment financing can be used by qualifying businesses to purchase just about any type of equipment, and small businesses may benefit from tax breaks under section 179 of the tax code.

If your credit rating isn't quite strong enough for dealer financing, or if you can't afford a down payment, equipment financing can help you secure the money you need so you can lock in today's equipment prices and keep your business running. With vehicle tariffs creating uncertainty and fluctuating inflation, financing your equipment now could be an easy way for you to protect your business from future cost increases.

5. SBA 504/CDC Loan. If you're seeking additional working capital to handle the economic uncertainty caused by tariffs, the Small Business Administration (SBA) 504 loan program may be a good option. These loans are designed to assist small businesses, especially those in underserved communities, with creating jobs, renovating their storefronts and purchasing equipment and other fixed assets. Any type of business with a physical location is eligible to apply.

504 loans are backed by the SBA and are granted by certified development corporations (CDCs). They are generally easier to obtain than an SBA-backed 7(a) loan and tend to carry a lower interest rate than most commercial loans. A 504 loan can be a great way for your small business to obtain working capital as it navigates the challenges posed by tariffs.

Consider Financing to Handle Tariff Surprises

The recent SCOTUS ruling on February 20, 2026, has fundamentally altered the legal framework of American trade policy, providing a significant victory for small businesses by striking down the “Liberation Day” tariffs. However, with the Trump Administration's swift response to the ruling using Section 122 and Section 232 authorities, the era of unpredictable import costs is far from over.

For retail, manufacturing, and construction firms, the challenge has shifted from permanent duties to a volatile economic and justifications for new tariffs. However, this era of uncertainty doesn't have to stall growth. By leveraging flexible tools like business lines of credit, revenue-based financing, or SBA 504 loans, your business can maintain the liquidity needed to absorb the price shocks caused by tariffs and secure inventory ahead of future policy shifts.