BOSTON–June marks 2024's worst month yet for the U.S. small business economy, according to Alignable’s June Revenue & Rent Report .
Alignable reported it found “discouraging” SMB trends in rent delinquency, revenue loss, stress around high interest rates, and spiking labor costs.
The findings are based on 3,690 responses from a new poll of randomly selected small business owners, conducted by Alignable from June 1-30, along with over 188,000 past survey responses.
Key Findings
Among the key findings in the June report:
- 46% of SMB owners couldn't cover June rent, marking the third consecutive month of the highest delinquency rates since March 2021.
- 56% report rent spikes compared to six months ago.
- 72% of SMBs are earning less now monthly than pre-COVID, a slight increase from May’s 71%, breaking a 2024 record.
- Post-pandemic businesses are also struggling, with 72% earning less than last year.
- 55% of SMB owners are hurt by high interest rates, up from 53% in May, “marking yet another 2024 high.”
- 47% believe interest rates need to drop at least three percentage points to achieve economic recovery.
- Automotive, science/tech, manufacturing, real estate, & retail sectors reported being hit the hardest.
- States with the highest delinquency rates include Texas (58%) and Florida (54%). Those that saw improvement include Illinois & New York.
Additional Concerns
- Cumulative Inflation: 35% of SMB owners cite this as their top worry, up from 33% in May.
- 79% of SMB employers are paying more for labor, up nine percentage points from May.
- Cash Crisis: 38% of SMBs have one month or less of cash on hand.