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Alignable’s latest rent and revenue report shows 46% of small
business owners couldn't afford to pay their May rent in full
and on time. That is the highest number since the pandemic.
Researcher Chuck Casto said a couple economic conditions are to
blame.
“A still high interest rate is number one,” Casto told The
Center Square. “Right behind it is the cumulative effect of
inflation, so those two factors are really taking quite a toll
on a lot of small businesses.”
Casto added that soaring rent costs are also to blame, with 58%
of small business owners saying their rent has increased during
the past six months.
Small business owners said supply costs are skyrocketing, with
89% saying supply costs are higher now than this time last year.
In Illinois, 40% of small businesses couldn't pay their rent on
time or in full in May, an increase of 11% from the month
before. That is the 7th highest percentage in the country.
New York has the highest percentage with 56% of small business
owners who couldn't pay their rent on time or in full. Texas and
Virginia were at 50%.
The three industries facing the most rent payment difficulties
are travel and lodging, science and technology, and
transportation.
“The most visible small businesses, the ones on the main streets
of the small towns in Illinois, they may look like they are
doing fine, but many of them are not,” said Casto.
The survey is based on responses from 4,081 randomly selected
small business owners, surveyed from May 1-31.
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