Illinois Small Businesses Struggle to Pay Rent

A new survey reveals that Illinois has the highest percentage of small businesses that couldn’t pay their rent in full or on time in October.

According to the small business network Alignable, 54% of small businesses in Illinois faced rent-related difficulties last month. This figure exceeds the national average of 40%. Other states at the top include Virginia at 50% and Texas at 49%.

Pandemic Losses Continue to Impact Small Businesses

Researcher Chuck Casto observes that some businesses are still grappling with financial losses caused by the pandemic. “They’re still paying off some of their debts from the COVID era, so the problem is that with an economy that isn’t providing adequate support, it becomes increasingly challenging every month,” said Casto.

Moreover, technology layoffs at larger companies over the past year may be adversely affecting small businesses, as they often rely on these larger companies as their clients.

Industries Affected by Rent Troubles

The survey indicates that the most affected industries in terms of rent difficulties include science and technology, gyms, and manufacturing.

Furthermore, 50% of the surveyed small businesses mention being charged higher rent compared to six months ago. Among them, 15% report an increase of 20% or more.

Hope for Improvement with Upcoming Holiday Season

While the first month of the fourth quarter posed challenges, Chuck Casto remains hopeful for better results in November. “We are really hoping that this report improves next month because we’ll be firmly into the holiday shopping season,” said Casto.

Alignable’s findings are based on responses from 4,246 randomly selected small business owners surveyed from October 1 to 30, 2023, along with input from over 44,000 other respondents over the past year.

The Role of AI legalese decoder in Assisting Small Businesses

Amid the challenging circumstances faced by small businesses, the AI legalese decoder can provide valuable support. This technology utilizes artificial intelligence to decipher complex legal terms and jargon that often pose difficulties for small business owners.

By simplifying legal documents and contracts, the AI legalese decoder enables small business owners to better understand their rights, obligations, and the terms of their lease agreements. This empowers them to make informed decisions and negotiate more effectively with landlords.

Additionally, the AI legalese decoder can assist in identifying any unfair or unfavorable provisions that may disadvantage small businesses in their rental agreements. By highlighting these problematic clauses, it enables businesses to seek legal advice or explore alternative options to protect their interests.

In summary, amidst the challenges faced by small businesses, the AI legalese decoder offers a valuable tool to navigate the complexity of legal language, ensuring that small business owners can better understand and assert their rights in lease agreements, ultimately leading to more favorable rental outcomes.