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Small businesses struggling, many filing for bankruptcy due to rising interest rates

WASHINGTON D.C. — Small businesses are struggling right now.

It’s all because of the uncertainty in the economy.

Channel 2′s Blair Miller is in Washington D.C., where he’s been talking with business owners to find out how this could impact customers.

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We’ve seen high-profile retailers that have filed for bankruptcy, but it’s not just big businesses.

Last week, more companies filed for bankruptcy in a 48-hour period than at any time since at least 2008 when the recession hit the U.S.

Brent Garrett has spent much of his adult life running small businesses.

He’s seeing plenty of other business owners forced to give up because they’re struggling with rising interest rates on their loans.

Now it’s leading many to struggle to make a profit.

“They’re just having a hard time staying in business. I am seeing it on a very personal level with friends that have small businesses,” Garrett said.

Rising interest rates are making it difficult for struggling companies to get new loans.

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On Capitol Hill, lawmakers have heard the complaints from small business owners, including a man who once owned four restaurants in Georgia.

“We’ve been forced to close three of them for several reasons - the first being the labor industry, or should I say, the lack thereof,” Matt Livingston said.

And as more small businesses close, more customers will feel it by not having access to something that may be right down the street.

“A number of small businesses only have one employee. They don’t really own a business, they own a job,” Garrett said.

Analysts told Miller it could get worse.

They expect the peak of the pain for small businesses to hit in a few months.

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