(The Center Square) – Iowa’s small businesses are faring a bit more poorly compared with national averages for rent delinquency, according to a new report.
Small businesses referral network Alignable.com reported Wednesday that Iowa businesses’ rent delinquency rate rose from 33% in April to 39% in May, which was two percentage points above May’s national average. The network conducted surveys from May 6 to 30 of 4,424 randomly selected small businesses across the country.
Half of the 125 Iowa small businesses surveyed said they have to pay more for rent now compared with six months ago, Head of Research and News Chuck Casto told The Center Square Thursday. Fifteen percent said their rent is at least 20% more compared with December 2022. Nationally, 54% said that rent was more expensive in May compared with December. Fourteen percent said it’s at least 20% higher.
Three-fifths of the surveyed Iowa businesses said they were concerned their business would suffer if a recession were to officially begin. Forty percent of those 60% said they were “highly concerned,” as they’re already in a recession. Nationally, two for every three small business owners said they’re concerned regarding recession while 27% said they’re “highly concerned.” Four percent said they’re worried they’d have to close their doors if the economy doesn’t improve soon.
About one in three Iowa small business owners and 32% of businesses across the country believe they’ve fully recovered from the pandemic-era setbacks since they’re making at least as much money as they did before it.
Fifty-three percent of Canadian small businesses polled were delinquent on rent in May.
To review the rest of the report, click here.