Illinois rent delinquencies are escalating, according to a survey, with 40 percent of small businesses unable to pay full monthly bill.
(The Center Square) – Small businesses in Illinois and around the country continue to face difficulties paying their rent.
A survey by the small businesses network Alignable shows 40% of those asked in Illinois could not pay their rent in November in full and on time, up 8% from October.
Nationwide, 41% said they could not pay their rent, a new high for 2022. Michigan, New York, Massachusetts and Texas all experienced a higher percentage.
Alignable head researcher Chuck Casto said the cumulative effects of inflation appears to be the main culprit.
“It’s so high, and every month it is harder and harder for small businesses to pass along the price increases they need to pass along,” Casto said.
Other contributing factors include higher rent, declining monthly revenues, and reduced consumer spending. In October, 59% of small business owners said consumers were purchasing less than the month prior. In November, that number jumped to 73%.
The survey shows the three areas of commerce suffering the most are beauty salons, education-related businesses and gyms.
One sector that drastically improved was the travel-lodging sector, where only 13% of small businesses said they couldn’t pay November rent, down from 34% in October.
Forty-one percent of those asked said the fourth quarter has been disappointing so far, but they were still holding out hope for a strong surge in sales.
Casto said consumers are key to improving the numbers.
“My shout out to Illinois would be consumers please, go to your main street merchants and purchase at least 60 percent of your purchases there,” said Casto.
Originally published by The Center Square. Republished with permission.
For more on the economy and government taxes and spending, from Budget & Tax News.
