BOSTON–As an indication of the unsteady economic recovery from coronavirus pandemic, small and medium size businesses are reporting varying ability to pay the rent, with hard-hit restaurants feeling the greatest strain.
Alignable’s September Rent Report reveals an increase in small businesses unable to afford their full rent.
Among the findings:
- In September, 35% of small businesses in the U.S. (up 5%) and 38% in Canada (up 6%), couldn’t pay their rent. Many cited the surge in Delta variant cases, as a leading reason for the issue, along with skyrocketing inflation, and an ongoing labor shortage.
- For restaurants and other industries that require in-person contact, the rates of rent problems were particularly severe in September. For the first time in six months, the majority of restaurant owners (51%) couldn’t pay their full rent (up 6%), Alignable said.
- Percentages also increased for massage therapists (48%, up 26%), beauty salons (46%, up 5%), construction company owners (42%, up 11%), retailers (40%, up 3%) and gyms(38%, up 5%).
- The state with the highest rate of SMB rent delinquency is now Michigan (43%). In Canada, the province citing the highest rate of rent challenges is British Columbia (50%).
- 80% of renters responding to the poll also said they’ve received no help from landlords, in terms of rent reductions, delays, or other even assistance in applying for PPP loans.
To see the full report, go here.