Small businesses impacted by the current economic tumult are filing for bankruptcy at levels last witnessed at the outset of the lockdown-induced recession, even as President Joe Biden touts an uptick in new business ventures.
Economic phenomena such as inflationary pressures, as well as the rising interest rates caused by monetary tightening from the Federal Reserve, had produced an increase in the number of small and medium-sized businesses filing for bankruptcy, according to a note from investment bank UBS obtained by Business Insider. Fears of a credit crunch amid the failure of multiple banks worsened the rise in bankruptcies. The number of business closures surpassed the peak witnessed three years ago when governments implemented lockdown mandates.
The number of monthly bankruptcy filings reached nearly 32,000 as of February 2023, an 18% rise from the 27,000 bankruptcy filings seen in February 2022, according to data from the American Bankruptcy Institute. Chapter 11…
