Thirty-seven percent of small businesses across the U.S. could not afford to pay their rent in full on time this month, according to research from Alignable. Several states saw an increase in rent issues among small businesses, including New York (up 7 percent from last month), Arizona (up 12 percent from last month), North Carolina (up 5 percent from last month), and Florida (up 3 percent since last month.)
In addition, 53 percent of minority-owned businesses couldn’t afford their rent in June, up from 45 percent in May.
According to Alignable, the top factors contributing to rent issues are inflation due to supply chain shortages and price hikes, labor shortages, and confusion as COVID-19 restrictions are lifted.
Related: Immigrant-Owned Restaurants Face Additional Struggles Amid the Pandemic; Foodservice in Crisis: How the Channel Can Recover.