New data shows small business bankruptcies jumped 30%ย in July vs. last year, and the pressures are stacking up: high interest rates, inflation, debt, and nowโฆ ๐ฉ๐๐ง๐๐๐๐จ.
๐๐ ๐๐ต๐ฒ ๐ป๐๐บ๐ฏ๐ฒ๐ฟ๐ย (source: Epiq Bankruptcy Analytics)
๐ผ Total bankruptciesย across all categories increased by 12% in July, with 49,614 filings vs. 44,452ย last year.
๐ผ Year-to-date (YTD) total bankruptciesย are up 23.5% over 2024, showing continued escalation.
๐๐๐๐ฉโ๐จ ๐๐ช๐๐ก๐๐ฃ๐ ๐๐๐๐จ?
Economists and Small Business experts point to a convergence of stressors: elevated interest rates, persistent inflation, record debt burdens, and geopolitical uncertainty. In addition, the easing of COVID-era relief hasnโt made enough ground to offset the pressure.
๐๐๐ง๐๐๐๐จ: ๐๐๐ ๐๐๐ญ๐ฉ ๐๐๐ซ๐?
As most economists predict, the full effects of the tariffs won’t be felt until later in the year. And as we reported last week, the estimated $202B tariff burdenย on smallโbusiness importers may suggest bankruptcy rates have further to climb.
๐ช๐ต๐ ๐ง๐ต๐ถ๐ ๐ ๐ฎ๐๐๐ฒ๐ฟ๐ ๐ณ๐ผ๐ฟ ๐ฌ๐ผ๐๐ฟ ๐๐๐๐ถ๐ป๐ฒ๐๐:
โก๏ธ If you’re in finance, lending, legal, logistics, or advisory services, clients are increasingly vulnerable.
โก๏ธ Small businesses hit with tariff-related cost shocks may turn to solutions that reduce risk, manage cash flow, or restructure debt.
โก๏ธ Early outreach offering stress-testing, adaptation strategies, or fee-based guidance could position you as a trusted partner.
๐ญ ๐ผ๐ง๐ ๐ฎ๐ค๐ช๐ง ๐จ๐ข๐๐ก๐ก ๐๐ช๐จ๐๐ฃ๐๐จ๐จ ๐๐ก๐๐๐ฃ๐ฉ๐จ ๐๐ก๐ง๐๐๐๐ฎ ๐จ๐๐ค๐ฌ๐๐ฃ๐ ๐จ๐๐๐ฃ๐จ ๐ค๐ ๐จ๐ฉ๐ง๐๐๐ฃ? ๐๐๐๐ฉ ๐ ๐๐ฃ๐ ๐ค๐ ๐จ๐ช๐ฅ๐ฅ๐ค๐ง๐ฉ ๐๐ง๐ ๐ฉ๐๐๐ฎ ๐๐จ๐ ๐๐ฃ๐ ๐๐ค๐ง?
Letโs share thoughts and strategies!
Independent business owners and advocates often collaborate through the National Federation of Independent Business (NFIB): https://www.nfib.com