Since the global recession officially began in December of 2007, thousands of small businesses have filed for bankruptcy. Indeed, economic times have been tough, and sometimes the only resort for small business owners is to shutter their doors.
However, there is good news on the horizon! Small business bankruptcy analysis performed in September 2009 by Equifax is showing that there are locations in American where bankruptcy is fast receding.
East Coast Recovering Faster than the West
While western states are still having a tough time and bankruptcies continue to rise, more and more eastern cities are showing improvement. From the second fiscal quarter to the end of the third fiscal quarter of 2009, Charlotte, NC saw a 69 percent drop in bankruptcies. Other cities with dramatic decreases were White Plains, NY with 49 percent and Atlanta, GA with 44 percent.
In addition, Equifax reported the top 15 cities with the fewest bankruptcies. All but two cities were located in Eastern states, such as New York, New Jersey, Massachusetts, Pennsylvania, Virginia, West Virginia, North Carolina, Georgia, Ohio, Michigan, and Florida.
The Future of Bankruptcies across the Country
The study and statistics included small businesses defined as commercial entities with less than 100 employees. It is estimated that more than 25 million small businesses operate in the United States. Of those 25 million, 9,361 filed for bankruptcy in September of 2009 alone, which is up 27 percent from 7,386 in September 2008.
However, the recovery effort is underway. In addition, with the Small Business Bailout passed by Congress, small business owners are finding ways to keep afloat. Small business loans, micro-loans, grants, and other financial aid are available to help business owners remain viable while the economy continues to try to improve. Over $60 billion has been set aside for small business owners.
The government is hoping that the bailout will help save or create 1.3 million jobs per year. Although bankruptcies continue to rise today, the hope is to help reduce the number of bankruptcies quarter after quarter. If you own a small business that is on the verge of bankruptcy, don’t become a statistic. Get help from your local SBA today and find out how you can prevent bankruptcy.