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The small business network Alignable reports that 48% of small
business owners nationwide couldn’t make a full rent payment
last month, which is a three-year high. The number is slightly
lower at 43% in Illinois, which is the highest percentage since
February.
“It was shocking to us on one level but on another level it
really is indicative of what we’ve seen during the entire year,”
said Alignable researcher Chuck Casto.
Texas small businesses made the biggest turnaround. About 32%
said they couldn’t pay their rent last month. That is down 17%
from the month before.
Transportation (58%) (including car services) and car dealers
(57%), plus retailers (52%) and restaurateurs (43%) had some of
the highest delinquency rates in September.
Despite the gloomy numbers, Casto said 57% of entrepreneurs
anticipate some level of growth in the fourth quarter, with 30%
feeling more optimistic than they did this time last year.
“The most resilient and most optimistic people are small
business people and they will find a way no matter how bad
things get,” said Casto.
The survey showed the Fed’s rate cut was welcome news. Twelve
percent of small business owners said the ½-point rate cut will
help them recover, and another 55% said they look forward to
further rate cuts to give them relief.
Casto said Illinoisans can help turn the tide by shopping at
mom-and-pop businesses.
“Help retailers, restaurateurs and others to have a better Q4
because they really need it now,” said Casto. “They need to see
a surge in customer spending on Main Street.”
The National Retail Federation said its 2024 forecast shows
winter holiday spending is expected to grow about 3% over last
year. |
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