---
title: "Survey: Small Business Owners Reaching to Make Rent"
url: https://burnaze.com/article/2139e3ed-33c3-4244-afd1-49facc35a5f3
source: "Franchising.com"
original_url: https://www.franchising.com/articles/survey_small_business_owners_reaching_to_make_rent.html
author: "M. Scott Morris"
category: "Finance"
topics: ["Finance & M&A"]
published: 2024-06-26T10:00:00.000Z
modified: 2026-10-31T20:30:17.837Z
image: https://imgs.franchising.com/art/articles/8697_plate.jpg
---

# Survey: Small Business Owners Reaching to Make Rent

**TL;DR:** U.S.-based small businesses are facing increasing financial challenges, with 46% unable to pay rent in full and on time in May 2024, and 58% reporting rent increases over the past six months. Alignable's May Revenue & Rent Report highlights persistent economic woes, including revenue declines and labor costs.

*By M. Scott Morris, originally published in Franchising.com on 2024-06-26. [Read the original](https://www.franchising.com/articles/survey_small_business_owners_reaching_to_make_rent.html).*

## Story

U.S.-based small businesses are facing increasing financial challenges with May 2024 setting new records for rent delinquency and highlighting persistent economic woes.

That's according to Alignable's May Revenue & Rent Report, based on responses from 4,081 randomly selected SMB owners surveyed during May plus historical data. Key Findings: Rent delinquency breaks new three-year record: 46% of small business owners couldn't afford to pay their May rent in full and on time, up from 43% in April. This is the highest rent delinquency rate since March 2021.

Soaring rent costs: 58% of SMBs report rent increases over the past six months, a rise from 54% in April. Revenue declines: 71% of pre-COVID SMBs are earning less than before the pandemic (up from 68% in April), with 46% making half or less of their previous monthly income. And 72% of newer business owners say they're earning less than last year.

Labor costs: 70% of SMBs are paying higher wages than last year. Interest rate: 52% say the current interest rate is negatively impacting their business, and 46% say they'll need the Federal Reserve to lower the rate by at least three points before recovery occurs. Credit card debt: 47% say their credit card debt is growing due to high interest rates.

Cash crunch: 39% say they only have one month or less of cash reserves, up five percentage points from April. Top concern: 33% of SMB owners cite cumulative inflation as their primary worry; 89% report higher supply costs than last year. State-specific data: New York: 56% of SMB owners polled couldn't pay May rent—a record high over the past year.

Texas and Virginia: Both at 50%. Florida: 47%, a 10-percentage-point increase from April. Michigan and Pennsylvania: 46%, each up 13 percentage points month over month.

Illinois, Massachusetts, and Washington State: 40%, up 11 percentage points for Illinois. Sector-specific struggles: Travel/lodging: 51% unable to pay May rent, up 27 percentage points from April. Science/tech and transportation: Both sectors see 50% rent delinquency rates.

## Entities

- Franchising.com (publication)
- General (sector)
- United States (location)
- M. Scott Morris (person)
- labor costs (topic)
- Federal Reserve (regulator)
- interest rates (topic)
- Alignable (company)
- economic challenges (topic)
- small business finance (topic)
- rent delinquency (topic)

---
Originally reported by M. Scott Morris, Franchising.com (https://www.franchising.com/articles/survey_small_business_owners_reaching_to_make_rent.html). Summarized by Burnaze (https://burnaze.com/article/2139e3ed-33c3-4244-afd1-49facc35a5f3).