Alignable: 49% Of Minority-Owned SMBs Are Unable To Pay January Rent

TREND TRACKER | DATA INSIGHTS | Results from Alignable's January Rent Poll have just been released, revealing that rent payments are still a struggle for one-third (33%) of all small business owners. While the new PPP funds could improve this situation in the coming weeks, right now, millions of small businesses still can't afford to pay their rent in full. 

Minority-owned businesses and restaurants/bars, yoga studios, and retail establishments are suffering the most, based on this poll conducted among 10,325 business owners last week. 

For the second month in a row, 49% of minority-owned businesses were unable to pay their full rent on time, compared to 35% of women-owned businesses and 31% of nonminority-owned businesses.

More Sectors Than Ever Are Suffering

And the news is even more alarming when the focus shifts to key, SMB-driven industries. 

More categories than ever are showing the lasting effects of dwindling customer counts, reclosures due to escalating COVID cases, cash flow crises, decreasing revenue, and related issues. In fact, more that 40% of small business owners in 1o different industries couldn't cover their rent in January.  

The list of the most devastated industries has expanded this month to include: restaurants/bars (57%), yoga studios (46%), retailers (44%), massage therapists (43%), beauty salons (42%), printers (42%), interior designers (42%), wedding planners (41%), manufacturers (41%), and transportation providers (41%).  

Rent Figures Demonstrate Growing Issues

That's the first time since COVID began that so many different categories reflected such devastation. 

In comparison, Alignable's December 2020 Rent Poll showed that only six industries had numbers 40% or higher: restaurants/bars (61%), beauty salons (46%), travel/hospitality (43%), gyms (41%), retailers (40%), and massage therapists (40%).

And one month previously, only two industries -- beauty salons (46%) and restaurants/bars (42%) -- were in the 40%-plus range according to the results of Alignable's November Rent Poll. 

Given these comparisons, it's clear that COVID's negative effects are becoming more widespread as we start 2021. And according to other Alignable polls this month, most entrepreneurs do not expect to see much of a recovery until at least May 2021. 

What's The Rent Story On The State Level?

When looking at the rates of small businesses unable to pay their rent by state, Alignable's January Rent Poll shows quite a range. 

On the high end, 41% of small business owners in Georgia, Maryland, and New Jersey couldn't make rent this month. 

Beyond those states, here are a few examples of others and how they're faring:

• IL -- 37%
• CA -- 36%
• NC -- 36%
• FL -- 35%
• NY -- 35%
• MN -- 34%
• WA -- 34%
• AZ -- 33%
• PA -- 32%
• TN -- 32%
• VA -- 32%
• TX -- 30%
• CO -- 30%
• CT -- 29%
• WI -- 25%

For more details on this most recent Alignable Rent Poll and others, including the methodology behind them, please contact Chuck Casto at chuck@alignable.com. 

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

ABOUT 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.

NOTE TO MEDIA: We encourage you to use any of the data we have researched for this report freely in your coverage and social media posts. Our only request is that you properly attribute the information to Alignable, and backlink to this poll, so that your audience can benefit from the other findings we've uncovered. We appreciate your interest in our research and applaud all of your efforts to share what's really happening to small business owners throughout the COVID Crisis.