According to a poll conducted by Alignable, 34% of small businesses will be unable to pay their full rent bill in October. While large box stores were allowed to remain open during the government imposed lockdowns, many small businesses were forced to close.
Though many have since reopened, the strict COVID regulations are preventing them from pulling out of the downward spiral and with politicians talking of a second lockdown, this may push many small businesses over the edge.
The 34% represented the overall average but certain sectors were harder hit. Below is the percentage of small businesses by type that say they will be unable to pay full October rent bill:
- Beauty Salons: 46%
- Restaurants: 40%
- Gymns/fitness: 40%
In an interview with CBN, salon owner Lisa Jones explained her situation:
She started Elysian Boutique in Bentonville, Arkansas nearly a decade ago. Rather than take a paycheck the last few months, Jones opted to keep her staff paid. That helped stretch her government stimulus money through June, but after a struggling summer, October brought a new low.
“We are late on rent currently, which is really hard to swallow. I’ve never in my life not paid something on time,” Jones told CBN News.
She’s made the difficult decision to close her brick and mortar shop at the end of the month, focusing instead on increasing online sales. If that falls through, she will likely close permanently.
According to an article on Bloomberg in August, over half of small business owners are concerned they won’t make it. This was before politicians started talking about a second lockdown. RELATED: Small Businesses Are Dying by the Thousands — And No One Is Tracking the Carnage