Thursday, April 25, 2024
HomeMinnesota Breaking NewsNearly half of Minnesota small businesses were delinquent on rent in May

Nearly half of Minnesota small businesses were delinquent on rent in May

(The Center Square) – Minnesota has the third-highest small business rent delinquency rate, according to a new report., a referral network for small businesses in North America that has more than 8 million members, released the state-by-state report this week. The network surveyed 4,424 randomly selected small businesses from May 6 to 30.

According to the report, 47% of 153 Minnesota-based small businesses were delinquent on rent in May, up from 45% in April. Only New York and Illinois had higher delinquency rates in May. Those states’ rates are 48% and 52%, respectively. Nationally, the average delinquency rate was 37%.

Minnesota’s May delinquency rate is the highest rate for the state in more than a year, the report said. April’s rate was 45%, which was the same in March, up from 29% in February and 8% in January. From May to December 2022, the delinquency rate ranged from 27% to 35%.

Head of Research and News Chuck Casto told The Center Square that part of the problem for Minnesota small business owners is that 62% of them, compared with 54% nationally, said they have to pay more for rent now compared with six months ago. Thirteen percent, compared with 14% nationally, said their rent is at least 20% higher now compared with December 2022.

Four of five Minnesota business owners said in a response to the question “If we were to officially enter a time of recession, how concerned are you that your business will suffer?” that they were concerned. One-third of those who said they were concerned said they were “highly concerned,” believing they’re already in a recession and their businesses are suffering because of it. Among the 34% who are highly concerned, 12% said they’re afraid that if conditions don’t improve soon, they may have to shut down their businesses. Nationally, two-thirds of small business owners are concerned, and 27% of those concerned said they’re highly concerned. Among the 27%, 4% are worried they may need to close up shop. Only 15% of Minnesota business owners, compared with 32% nationally, said they’re making at least as much money monthly as they did before the pandemic.

Fifty-seven percent of minority small business owners, nationally, couldn’t pay rent in May, up from 48% in April.

Fifty-three percent of Canadian small businesses polled were delinquent on rent in May.


Most Popular

Recent Comments