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Friday, July 17, 2020

U.S. small business owners face difficulties in making rent payments...




...and landlords can't afford to evict them.

The economic shutdowns and on-again-off-again re-openings have made it hard for business owners to cover their rent, which can sometimes be their largest expense.

That has created an uncomfortable tension and interdependency with the often small, independent landlords or small real estate firms from which they rent. Those landlords, after all, have their own expenses and taxes to pay.

An informal survey taken at the end of June by small business advocacy group The Main Street Alliance found that nearly 60% of its members had delayed or reduced their commercial rent payments in the past four months. Nearly half said they've had to pay business expenses by borrowing against their home or using their personal credit cards.  

The economic strain likely will get worse before it gets better for everyone.

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