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A survey by the small business network Alignable shows that 43%
of small businesses nationwide were unable to pay their rent in
full or on time in April, the highest percentage in three years.
That is up four percentage points since March, also creating the
largest month-to-month jump in rent delinquency in over a year.
Researcher Chuck Casto said conditions improved in Illinois at
29% of small business owners facing rent troubles.
“For March and April, it looks like many of the businesses in
Illinois have been able to charge more and compensate for the
inflationary times that we’re in,” said Casto.
Casto said increasing costs, including what small business
owners are now required to pay for rent, coupled with declining
revenues help to explain April's exceedingly high rent
delinquency rate.
He adds that cash reserves are now a concern again, as 34% of
small business owners only have one month or less cash on hand.
When business owners run out of cash, that can mean the end of
the business.
According to the survey, Texas had the highest percentage of
small businesses that experienced rent problems in April, with
52% rent delinquency rate. Massachusetts and California were
second and third.
The top three business sectors experiencing the worst rent
problems are restaurants, science and technology, and beauty
salons.
The latest data is based on poll responses from 4,171 randomly
selected small business owners surveyed from 4/1/24 to 4/24/24.
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