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Alignable, a small business referral network, asked 7,331 small
businesses around the country and 40% indicated that they
couldn’t pay their rent in August on time or in full, the
highest rate in 18 months.
Head of research Chuck Casto says Illinois’ number is even
higher at 53%.
“Looks like Illinois is second only to Colorado in terms of rent
delinquency among small businesses, and sadly it went up 13%,”
Casto said.
Many taking the survey blamed their rent issues on a combination
of negative trends in the economy, including rent spikes, high
gas prices and the increasing cost of supplies and labor.
Forty-five percent of poll takers said their rent is at least
50% higher today than it was prior to the pandemic, with a
quarter saying it is at least twice as high. About 12% said
their rent has tripled.
Rent issues are even worse for minority-owned businesses, as 53%
of their owners said they couldn’t afford August rent, up 4%
from July.
Casto said that in many cases, if a business can’t pay its rent,
it may have to fold up shop.
“This has been happening for about two years now, maybe more
than two years, so a lot of the landlords are less lenient,” he
said.
Most industries saw an increase in rent delinquency rates, with
agriculture (50%), nonprofits (46%) and restaurants (46%)
leading the way.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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