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A survey by the small businesses network Alignable shows 40% of
those asked in Illinois could not pay their rent in November in
full and on time, up 8% from October.
Nationwide, 41% said they could not pay their rent, a new high
for 2022. Michigan, New York, Massachusetts and Texas all
experienced a higher percentage.
Alignable head researcher Chuck Casto said the cumulative
effects of inflation appears to be the main culprit.
“It's so high, and every month it is harder and harder for small
businesses to pass along the price increases they need to pass
along,” Casto said.
Other contributing factors include higher rent, declining
monthly revenues, and reduced consumer spending. In October, 59%
of small business owners said consumers were purchasing less
than the month prior. In November, that number jumped to 73%.
The survey shows the three areas of commerce suffering the most
are beauty salons, education-related businesses and gyms.
One sector that drastically improved was the travel-lodging
sector, where only 13% of small businesses said they couldn’t
pay November rent, down from 34% in October.
Forty-one percent of those asked said the fourth quarter has
been disappointing so far, but they were still holding out hope
for a strong surge in sales.
Casto said consumers are key to improving the numbers.
“My shout out to Illinois would be consumers please, go to your
main street merchants and purchase at least 60% of your
purchases there,” 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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