(The Center Square) – More small business owners in Illinois will find it harder to generate the same income this year as they did in 2023.

A survey by small business network Alignable found that 58 percent of small businesses in Illinois are currently earning less than they did last year, up 7 percent from the previous month.

Researcher Chuck Casto said that although the Fed is talking about cutting interest rates in September, the damage has already been done.

“Even though the inflation rate is declining, the impact of cumulative inflation and the above-normal prices we have had for several years continues to cause increasing concern for small businesses,” Casto said.

In addition, high interest rates and rising rent payments continue to erode margins and hamper growth. 41 percent of small businesses were unable to pay their rent in full and on time in July and 52 percent experienced rent spikes.

According to the report, 73% of small business owners nationwide reported they are below last year’s sales. A majority of small business owners in 17 states reported their sales declined this year compared to 2023, with the highest percentages in Virginia, California and Arizona.

Over 80% of small businesses in manufacturing, beauty salons and real estate are reporting significant declines in revenue.

Results are based on 6,155 survey responses from randomly selected small business owners from 7/1/24 to 7/31/24.