Small Businesses File For Bankruptcy At Record Pace, Surpassing COVID Crash

Sad. Sad. Sad.

This country has been intentionally wrecked. For what, I wonder?

This is what happens when there is no middle class.

Small business owner here. Chugging along down here in the Texas oil patch. Plenty of manufacturing going on.

And small business constitutes a large part of the American economy.

they should have pulled themselves up by their boot straps

[link to www.zerohedge.com (secure)]



Small businesses across the United States are experiencing a surge in bankruptcies, surpassing levels not seen since 2020. According to a UBS note reviewed by The Epoch Times, conditions could become worse as the knock-on effects from the recent banking crises begin to manifest.


The note from UBS Evidence Lab shows private bankruptcy filings in 2023 have exceeded the highest point recorded during the early stages of the COVID pandemic by a considerable amount. The four-week moving average for private filings in late February was 73 percent higher than in June 2020.

“[We] believe one of the more underappreciated signs of distress in U.S. corporate credit is already emanating from the small- and mid-size enterprises sector,” Matthew Mish, head of credit strategy at UBS, wrote in a recently published research note. “[The] smallest of firms [are] facing the most severe pressure from rising rates, persistent inflation and slowing growth.”

Industries hit hardest by the wave of bankruptcies include real estate, health care, chemicals, and retail outlets, according to the Swiss Bank’s report.

The Federal Reserve’s monetary tightening to combat inflationary pressures has been largely behind the uptick in bankruptcies. UBS indicated that the fear of a credit crunch has further worsened the rise in defaults.

Credit conditions are tightening across the spectrum. Large businesses and individual borrowers are feeling the heat as well.

As of February 2023, the monthly bankruptcy filings exceeded 31,000, an 18 percent rise from the 25,564 bankruptcy filings reported in February 2022, according to data provided by the American Bankruptcy Institute. The increase in Chapter 11 bankruptcies—typically used by larger businesses—rose by 83 percent over the same period, with 373 total filings in February of this year.

The White House has downplayed the current economic challenges and their impact on small businesses. Last week, for example, President Joe Biden cited higher rates of new business formation over the past three years—without acknowledging the issues entrepreneurs face.

Funny you say that. The Pittsburgh based medical supply company that I deal with for the first time had what seemed to be an Indian call center taking calls yesterday for the first time ever, and I have been dealing with them for years.


Also Comcast I believe went Indian (dot) for their call ctr as well.