(Bloomberg) — The delinquency rate for US small businesses climbed to a three-year high this month, reflecting the impact of rent spikes and declining revenue, according to a monthly survey.
The Small Business Rent report from Alignable, which provides an online networking platform for owners, found that 43% of small businesses were unable to pay their rent in full due to economic headwinds. That’s the highest rent delinquency rate since March 2021.
Independent restaurants are having the most trouble, with 52% not paying April rent on time. On the other hand, just 20% of small manufacturers are delinquent.
More than half of small-business owners say that their rents are higher now than they were six months ago. Of those, 11% are paying at least 20% more than they did last fall.
Alignable found that fewer than a third of businesses founded prior to March 2020 are earning as much or more each month than they did before the pandemic. And among firms founded after the pandemic, 60% are making less than they did a year ago.
Increasing costs and declining revenues are hitting firms, according to the report. Some 34% say they only have one month or less cash on hand.
The survey of 4,171 small-business owners was conducted during the first three weeks of April.
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