SPRINGFIELD, Ill. (IRN) — With numerous economic issues like reduced consumer spending and rent hikes, about a third of Illinois small businesses couldn’t pay their rent in full in October. That is actually down 7% from September, but nationally the numbers tell a different story.  

According to Alignable’s October Rent report, the U.S. rent delinquency among small businesses jumped 7%, marking the largest, most rapid increase this year. 

Nearly 40% of small businesses in the U.S. failed to pay their rent in full in October, with more than half saying their rent has been hiked at least 10% over the past six months. 

In addition to rising rent prices, reduced consumer spending and higher supply costs are taking a toll.

“It is very nerve racking given that we are in the 4th quarter and so many businesses rely on Q4 to basically bail them out from the rest of a rough year,” said Alignable head researcher Chuck Casto. 

In September, the study found rent delinquency had been at a six-month low, fueled by optimism for the final quarter of the year’s earning potential as some small business owners reported an increase in sales.

Illinois was one of only two states where rent delinquencies decreased from September. The Northeast appears to be experiencing the most troubles paying rent with Massachusetts, New Jersey and New York reporting the highest percentages.

Leading the pack were businesses in the education sector, up 13% from last month to a whopping 57%, the highest ever seen in that subset of businesses.

Not far behind were two more types of businesses that also saw record delinquency in the month of October, the automotive sector and restaurants.

Most restaurants are far from being fully recovered from the pandemic. The survey showed nearly half of all restaurants couldn’t pay their rent in full and on time in October, an increase of 13% from September.

By KEVIN BESSLER for the Illinois Radio Network