(The Center Square) – A new survey shows that nearly a third of Illinois small businesses couldn’t pay their rent on time or in full in June, but conditions have improved.
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.
