The economic policies of the Biden administration are coming under scrutiny as the delinquency rate for U.S. small businesses reached a three-year high this month, according to a new report from Bloomberg.
According to a recent survey conducted by Alignable, an online networking platform for business owners, 43% of small businesses were unable to pay their rent in full due to the challenging economic climate.
This alarming figure represents the highest rent delinquency rate since March 2021.
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The survey, titled the Small Business Rent report, sheds light on the struggles faced by entrepreneurs across various sectors.
Independent restaurants have been hit particularly hard, with 52% failing to pay their April rent on time. In contrast, small manufacturers fared slightly better, with a delinquency rate of 20%.
Rising rents have become a significant burden for many small businesses.
43% of small businesses were unable to pay rent this month due to economic hardship, the highest delinquency rate since 2021.
It's clear: record inflation and excessive regulations under Biden's watch are suffocating every small business in America.https://t.co/UXlMcMBwIq
— Congressman Ben Cline (@RepBenCline) April 29, 2024
The report reveals that more than half of the owners surveyed are now paying higher rents compared to six months ago. Shockingly, 11% of these businesses have seen their rents increase by at least 20% since last fall.
The financial strain on small businesses is further compounded by declining revenues.
Alignable’s findings show that less than a third of businesses established before March 2020 are earning as much or more each month compared to their pre-pandemic levels.
The situation is even bleaker for firms founded after the pandemic, with 60% reporting lower earnings than a year ago.
As costs continue to rise and revenues dwindle, many small businesses are struggling to stay afloat.
The report indicates that 34% of the surveyed owners have only one month or less of cash reserves on hand.
The survey, which gathered responses from 4,171 small-business owners during the first three weeks of April, paints a troubling picture of the current economic landscape.
Critics argue that the Biden administration’s policies, often referred to as “Bidenomics,” are directly responsible for the increasing financial pressures faced by small businesses.
Loan delinquencies for small businesses ticking up as well with high inflation being the biggest concern for business owners. Less companies paying rent on time, fewer paying loans on time, inflation possibly accelerating once more and interest rates higher for longer a problem. pic.twitter.com/DeWlzWwmbf
— Kenneth (@OptionsAhoy) April 30, 2024
As the delinquency rates continue to climb, it becomes evident that a change in economic policies is necessary to prevent further damage to the small business sector.
Without swift action and support from the government, many more entrepreneurs may find themselves unable to keep their doors open in the coming months.
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As calls for policy reforms grow louder, it remains to be seen whether the Biden administration will take the necessary steps to address the concerns of small business owners and create a more favorable environment for their success.
