New data shows small business bankruptcies jumped 30% in July vs. last year, and the pressures are stacking up: high interest rates, inflation, debt, and now… tariffs.
By the numbers (source: Epiq Bankruptcy Analytics)
- Total bankruptcies across all categories increased by 12% in July, with 49,614 filings vs. 44,452 last year.
- Year-to-date (YTD) total bankruptcies are up 23.5% over 2024, showing continued escalation.
What’s Fueling This?
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 hasn’t made enough ground to offset the pressure.
Tariffs: The Next Wave?
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 burden on small‐business importers may suggest bankruptcy rates have further to climb.
Why This Matters for Your Business:
- If you’re in finance, lending, legal, logistics, or advisory services, clients are increasingly vulnerable.
- Small businesses hit with tariff-related cost shocks may turn to solutions that reduce risk, manage cash flow, or restructure debt.
- Early outreach offering stress-testing, adaptation strategies, or fee-based guidance could position you as a trusted partner.
Independent business owners and advocates often collaborate through the National Federation of Independent Business (NFIB): https://www.nfib.com