The report found that 43% of small businesses were unable to pay their rent in full; which is the highest delinquency rate since March 2021. The poll tallied 4,171 small-business owners and was conducted during the first several weeks of April.
The delinquency rate was at its height at 49% in March, 2021.
Of these, independent restaurants are struggling the most at 52%, while 20% of ‘small manufacturers’ were delinquent. Over half of small business owners say their rents are higher than they were just six months ago, with 11% paying at least 20% more than they did last fall.
‘Alignable found that fewer than a third of businesses founded prior to March 2020 are earning as much or more each month than they did before the pandemic. And among firms founded after the pandemic, 60% are making less than they did a year ago,’ Bloomberg noted.
Newsweek also noted: ‘The state with the highest delinquency rate in the country was Texas with 52 percent of small business owners unable to pay their rent in full and on time in April, followed by Massachusetts (47 percent), California (46 percent), Maryland (42 percent), New York and Washington State (39 percent). The lowest delinquency rate was in Colorado, with 26 percent.’
The cause, the report purports, is that rising costs and declining revenues are straining these owners. 34% of those polled say they only have a month or less of cash on hand.
AUTHOR COMMENTARY
Earlier this month it was also revealed that consumer credit card delinquency rates hit their worst-ever in history, while at the same time buy now, pay later apps continue to grow in use. Meanwhile the federal government has accrued so much debt the interest payments on it is now $1 trillion every 100 days!
Proverbs 28:16 The prince that wanteth understanding is also a great oppressor: but he that hateth covetousness shall prolong his days.
This country’s insatiable covetousness has caught up with itself and now there is no way back. Sure, the goons in charge ruined it all with the lockdowns and restrictions since 2020, but it’s not like we were so hot before that. It’s all now coming to a head.
Don’t listen to the chatter of Bidenomics, or Trump’s dreamy rhetoric of fixing this mess: it can’t be fixed, it’s too late; all of this is just a formality taking place since 2020.
As more businesses are eventually forced to shutter their doors, it will only add to the growing commercial real estate timebomb brewing that will tear down the banks.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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It’s a Ticking Time bomb! Those living in their own little bubble and not paying attention, are going to suffer. The bank collapse is going to happen without warning.