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The
small business referral network Alignable reports that about a
third of small businesses in the U.S. were unable to pay rent in
full and on time in May, up from 28% in April. Head researcher
Chuck Casto says it is even more bleak in Illinois.
“For Illinois, that was really something else,” Casto said. “It
went up 17% where 44% of those polled out of Illinois said they
weren’t able to pay their rent in full and on-time.”
That is the highest percentage in the country. Texas was also at
44%, just ahead of New Jersey at 39% and Georgia at 37%.
Rising rent prices are partly to blame. Forty-eight percent of
the small business owners said their rent has increased over the
past few months, with 32% saying it's over 10% higher.
“The rent is going up because the landlords are trying to recoup
money they have lost and recoup the expenses that they’re
spending on things like gas and groceries,” Casto said.
Another key factor hurting small businesses are gas prices,
which hit record highs last month, averaging more than $5 per
gallon for regular gas before dipping down slightly.
As a result, the transportation sector was the hardest hit.
Sixty-three percent of transportation small businesses couldn’t
afford June rent, with three-fourths citing that gas prices have
had a “very significant” negative effect on their businesses.
Casto said he was surprised by the high number of small
businesses in Illinois with rent problems and it merits further
study.
“We’ll be looking at Illinois right off the bat in July to see
if this is an extended problem or just a blip,” said Casto.
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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