33% of small businesses in Kansas can’t afford their June rent: report

Even as the U.S. cautiously emerges from the worst of the COVID-19 pandemic, many small businesses owners report that they can’t afford their rent.

In June, 53% of minority small business owners couldn’t pay their full rent on time, according to a new report by Alignable.

That’s significantly higher than the 37% of small business owners nationwide who reported being unable to pay on time and in full. The study found that Kansas’s 33% rate of small business owner who can’t pay their rent is slightly better than the national average, but still a 10% increase from the state’s May rate of 23%.

The June rent report, conducted by the small business referral network, is based on a poll of 3,814 small business owners from around the country.

Alignable’s data could not determine Kansas’s rate of minority-owned small businesses struggling to pay rent. But last month, the city of Wichita rolled out PROPEL, a program designed to bolster minority- and women-owned businesses in District 1 through short-term revolving loans.

Nationally, 40% of small businesses in construction, transportation, nonprofit, travel, beauty and entertainment reported that they couldn’t afford their June rent. Thirty-nine percent of restaurants, 38% of real estate firms and 35% of retailers reported the same.

According to the report, 65% of small businesses in Kansas say they are earning 50% or less of the revenue they generated prior to the pandemic. That’s compared to 57% nationally.

This story was originally published June 21, 2021 at 2:08 PM.