(The Center Square) – As Illinois small businesses continue to struggle to recover from the pandemic, a survey shows a majority of them are facing higher rent payments.
The small business network Allignable reports that 55% are paying higher rent than six months ago, and 16% say their rent is over 20% higher than in January.
Head researcher Chuck Casto said 42% of Illinois small businesses could not make their rent payments in June, with lingering inflation and a lack of revenues also taking a toll on businesses nationwide.
“Fifty-three percent told me that they’re only making half or less of what they made this time last year,” said Casto.
Illinois’ rent delinquency rates in June are the 5th highest in the country behind only New Jersey, Florida, Georgia and Ohio. Michigan and Colorado experienced delinquency rates of only 11%, down five percentage points from May and the lowest in the country.
Nationally, 39% of small businesses could not pay their rent in June, with education, manufacturing and restaurants being the top three sectors facing rent troubles.
Casto said many businesses around the country haven’t returned to normal since the pandemic.
“The recovery rate for small businesses is now at only 38% nationally that have fully recovered from the COVID-era,” said Casto.
The report is based on Alignable’s new poll of 4,801 randomly selected small business owners from June 6, to June 27, 2023.
