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The small business network Alignable survey shows that
nationwide, 46% of small business owners reported rent
difficulties, the highest delinquency rate since March 2021.
Only 28% of small businesses said they have fully recovered from
the COVID-19 pandemic.
Researcher Chuck Casto said an interest rate cut by the Fed
would be welcomed by small businesses.
“Fifty-five percent said that the still high interest rates is
really hurting their businesses and that is the highest it’s
been since at least December,” said Casto.
June broke a record for 2024 in terms of revenue loss impacting
the greatest number of small businesses, indicating a
significant economic backslide from March, when just 64% were
making less monthly than they did before the pandemic.
Labor costs are also taking a toll. The survey showed that 79%
of small business owners said they’re paying employees more now
than last year. That is an increase of nine percentage points
from May and up 18 percentage points from April.
In 2019, Illinois lawmakers voted to gradually increase the
minimum wage. At the time it was $8.25 per hour. In 2024, the
minimum wage is $14 per hour and will increase to $15 in 2025.
Conditions improved in Illinois as 30% of small business owners
experienced rent troubles in June, down 10% from May.
“On our chart, Illinois is basically leading the pack on the
other side of the equation where they have a lower rent
delinquency rate than many of the other states that we look
closely at,” said Casto.
The survey showed that the top three states with small
businesses facing rent troubles in June were Texas, Florida and
Arizona, all of which are over 50%.
The top three industries dealing with rent troubles include
automotive, science & technology, and manufacturing.
The data is based on 3,690 responses from a new poll of randomly
selected small business owners, conducted by Alignable from
6/1/24 to 6/30/24, along with over 188,000 past survey
responses.
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