Alignable, a business networking platform, recently released results from a survey of 3,690 randomly selected small business owners polled throughout the month of June. It found that for the third consecutive month, small business owners faced mounting economic stress with the national small business rent delinquency rate remaining at a three-year high of 46 percent.

"Revenue losses have inched up to a 2024 record high, and more business owners are struggling with persistently high interest rates," the company said. "Beyond all of that, the negative effects of cumulative inflation are growing as the top concern among small businesses, regardless of reported inflation rate declines."

Forty-six percent of SMB owners reported that they were unable to cover rent in June, which is the same amount as the previous month. This was the largest number for small business rent delinquency since March 2021, when it was 49 percent during the pandemic.

Alignable says that economic issues are putting "ongoing pressure on already-stressed small business owners," particularly among the 56 percent of those who report recent rent spikes. This group reported higher payments required by their landlords compared to six months prior. The company notes that there doesn’t appear to be much relief in this area in sight with the spring to early summer months representing the worst period for many small business owners in a long time.

The poll found that five sectors in particular are struggling the most when it comes to the rent situation. These are: automotive, science/technology, manufacturing, real estate, and retail. SMB owners in the automotive industry saw the biggest jump in rent delinquency, increasing 21 percentage points month-over-month. It even broke a record spanning the prior 14 months.

The science/technology sector wasn’t far behind at 52 percent, though this was only a jump of two percentage points month-over-month. Next was the manufacturing sector, which experienced the second highest month-over-month increase in rent delinquency, up 16 percentage points, to 46 percent.

Forty-four percent of SMB owners in real estate and retail experienced rent delinquency in June. For realtors, this was the same as in May, but for retailers, this was actually down from the 46 percent in May. Alignable notes that 44 percent is still a significant number as it represents an entire sector. Rent spikes for retailers are forcing businesses to lose their brick and mortar stores and either shut down completely or move entirely to online sales.

Alignable says that rent is only one of the major problems SMBs are facing, noting other challenges, including cumulative inflation, increased revenue losses, and more owners suffering from high interest rates. The report wasn’t all doom and gloom, however. It did point to lower gas prices benefitting the transportation industry, which saw a 10-percentage-point decline in delinquency from its 40 percent delinquency rate in June.

Other sectors at the same level as transportation were beauty and construction, with restaurants, gyms, and music/artists having the lowest rates of delinquency.