58% of Minority Businesses Can't Afford February Rent

Results from our February Rent Poll, conducted among 5,673 small business owners from 1/30/21 to 2/1/21, reveal that 38% of all small businesses couldn’t make their rent payments this month, up 5% from January.

Across the board, rent problems have escalated in February among many groups and sectors, despite the promise of the new PPP. Minorities, women, and small business owners in 15 different industries have reported increased difficulty in paying their rent.

Here are the latest statistics showing the financial struggles experienced by small businesses:

58% of minority-owned businesses couldn’t afford to pay their full rent this month, up 9% from last month.
Women-owned businesses also saw an increase in rent issues, as 41% couldn’t pay it in February, up 6% from January.
And nonminorities reported more financial stress this month, as 37% of them couldn’t cover their rent, up 6% from last month, as well.

Over 40% Of SMBs In 15 Categories Couldn’t Cover Rent

Beyond increased rent issues across all demographics, more industries than ever are reporting financial distress. Over 40% of small businesses in 15 top industries reported not paying their rent in February.

That’s up from 10 categories last month and six industries in December, showing that the ravages of the COVID threat continue to deepen and broaden for many small business owners.

This chart illustrates this growing problem for some B2C and B2B small business owners.

Caterers lead the pack this month as 62% of them report not being able to cover their February rent, largely because catering orders have diminished significantly, as most events, gatherings, and large office meetings or parties are no longer happening. Given that, it’s not hard to imagine why 61% of event planners are in the same precarious situation with their rent.

Other devastated industries on our expanded list include the following: gyms (58%), restaurants/bars (57%), travel agencies/hotels (50%), cleaning services (50%), interior designers (50%), beauty salons (49%), printers (46%), nonprofits (44%), repair shops (44%), retailers (43%), transportation providers (43%), consultants (41%), therapists (40%), entertainers/artists (40%), and message therapists (39%).

More States Than Ever Are Experiencing A Rent Crisis

And as you review the data from a variety of states, you see a similar scenario.

Many small businesses apparently need much more help than they’re receiving, at least so far this year. Some 40% (or more) of small businesses in NJ (49%), NY (47%), TN (46%),CA (44%), MD (42%), GA (41%), and CT (40%) couldn’t pay February rent.

In comparison, only three states weighed in over 4o% in January: New Jersey (41%), Maryland (41%), and Georgia (41%).

Here’s the situation for several other states in February.

WA — 39%
AZ — 38%
CO — 37%
NC — 38%
OH — 38%
PA — 38%
MI — 37%
VA — 37%
FL — 34%
TX — 34%
IL — 33%
WI — 33%
MA — 30%

To see all Alignable polls since March, go to the Alignable Research Center.

Alignable is the largest online referral network for small businesses with over 6 million members across North America.

We established our research center in early March 2020, to track and report the impact of the Coronavirus on small businesses, and to monitor recovery efforts, informing the media, policymakers, and our members.

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