According to the newest Alignable Rent Poll, it’s becoming more and more hard for smaller enterprises anyplace to cover for their rent in full and promptly, given the newest COVID resurgences. The demand for greater national financing can also be becoming more conspicuous for a number of these business, in accordance with the survey.
These findings have been in line with the newest Alignable Rent Poll conducted between 9,204 small business people in during 11/21-11/23/2020.
- Several B2C industries are devastated – 61% of restaurants can’t pay their rent this month. That’s up 19% from 42% in November.
- 35% of U.S. small businesses couldn’t pay their rent this month, up 3% from 32% in November.
- Beauty salons (46%) and travel/hospitality businesses (43%) round out the Top 3 most-affected businesses, but many others are in trouble.
- Looking at demographics, minority-owned businesses are suffering the most, as 49% of them reported that they could not afford their rent in December. That figure is 5% higher than it was in November.
- Women-owned businesses are also struggling (38% of those have not paid their rent, up 3% from 35% last month).
High proportions of small business owners could not pay their rent in full, on time: Restaurants/bars top the record at December with 61% not able to pay their rent. Almost half of beauty salons (46 percent ) had difficulty paying the rent, as did 43% of travel/hospitality companies.
Overall, 35 percent of small business owners reported that they could not make rent this month (up 3 percent from 32 percent in November). For minority-owned companies, the battle is much more pronounced: almost half (49 percent ) report being not able to pay their lease in December. That figure jumped 5 percent from 44 percent in November. For women-owned companies, 35% could not make leasing in November and that percent is left up to 38 percent in December.
Most noted that increasing limitations based on COVID resurgences are causing greater difficulties to them — and restricting the type of earnings they can result in the remainder of the year, and possibly, beyond. Looking at several businesses, it is apparent that cash is growing much tighter in several B2C businesses, and paying leasing is becoming more and more challenging.
Rent Woes Across The U.S. & Canada
While 35% of U.S.-based small businesses are unable to pay December rent, small businesses in a variety of states are even more cash-strapped.
In Canada, the rate is even higher – 37% of Canadian small business owners said they couldn’t make December rent, 1% higher than in November. Here’s the breakdown by state for those matching or exceeding the overall, national U.S. average:
- NY — 43%
- AZ — 43%
- IL — 42%
- OR — 42%
- WA — 40%
- MD — 40%
- NJ — 39%
- PA — 39%
- CA — 37%
- VA — 36%
- GA — 36%
- MN — 36%
- FL — 35%
- SC — 35%
The following states are still struggling, but not as much as those listed above:
- TX — 34%
- MI — 34%
- OH — 32%
- MA — 31%
- CO — 29%
- NC — 27%
- MO — 20%
Changing from the U.S. into Canada, the poll witnessed a selection of rent payment levels over the states. Using one extreme, smaller enterprises in British Columbia seem to be weathering the COVID storm somewhat better, using just 30 percent of those reporting that they could afford to pay for rent in full and in time. Nevertheless, the problem is significantly much more acute in different areas of Canada: 43 percent of small organizations in Alberta, and 42 percent in Ontario reported never only earning December rent.