A rent poll, conducted among 8,092 small business owners from 10/24-10/27/20 by Alighnable, found that 44% of minority-owned small business owners could not afford to pay their full rent on time in November.
That’s compared to 35% of women-owned businesses and 32% of nonminority-owned small companies.
Similar trends were seen among minority-owned and women-owned businesses in terms of who received PPP funding earlier this year.
And now, with no additional PPP in sight, the lack of federal funding is causing even more burdens for businesses that are most-affected by the devastating COVID threat.
Lack Of Federal Funds + COVID Surge = Tougher Times
Unfortunately, the rent struggles, and related cash flow issues, are not likely to improve any time soon given the surge in COVID cases across North America. Small business owners say that surge is elevating their fears that the government will force them to close their ailing businesses once again. In some cases, that could mean those businesses won’t survive into 2021.
Rent by state
When looking at rent issues geographically, 36% of all small businesses in Canada couldn’t pay their full rent. The overall number for the U.S. was 32%.
The range in provinces is 43% in Saskatchewan to 32% in British Columbia. In the U.S., New York’s small businesses are among those having the most trouble paying full rent, as 40% of them are struggling.
At the other end of the spectrum, only 25% of SMBs didn’t pay their full rent this month in North Carolina.
Here are the figures for several other states:
- AZ (26%)
- CO (26%)
- MA (27%)
- WA (28%)
- OH (30%)
- PA (31%)
- TX (31%)
- FL (32%)
- MD (32%)
- CA (33%)
- MI (34%)
- VA (34%)
- NJ (35%)
- GA (36%)
- IL (36%)
Which Industries Are Struggling Most With Rent?
Looking at the top categories, Beauty Salons (46%) and Restaurants (42%) are having the toughest time paying rent in November, a trend that’s been happening for a few months now, unfortunately.
Retailers, Gym Owners & Entertainers Round Out Top 5
Other sectors facing major challenges with rent include Retail (38%), Gyms (38%), and Entertainment (36%), largely because of struggles attracting customers.
Many entertainers note that their businesses will not be able to thrive until public spaces like theaters are fully open to the public. Many theaters have been closed since March.
In contrast, only 23% of Real Estate agents and 22% of Accountants didn’t pay their full rent, largely because those professions have been less impacted by COVID limitations.
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