(Bloomberg) — The delinquency rate for U.S. small businesses rose to a three-year high this month, reflecting the impact of rising rents and falling income, according to a monthly survey.
The Small Business Leasing Report from Alignable, which provides an online networking platform for landlords, found that 43% of small businesses were unable to pay their full rent due to economic headwinds. This is the highest rent delinquency rate since March 2021.
Independent restaurants have the biggest problem, with 52% not paying their April rent on time. On the other hand, only 20% of small manufacturers are in default.
More than half of small business owners say 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 less than a third of companies founded before March 2020 earn as much or more per month than before the pandemic. Among companies founded after the pandemic, 60% are making less than a year ago.
According to the report, rising costs and falling revenues are affecting companies. About 34% say they only have cash for one month or less.
The survey was conducted among 4,171 small business owners during the first three weeks of April.
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