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The Sacramento Bee reported today that 9,500 businesses have closed their door for good in the area,one for every six still open, and more than in 17 entire states, including Utah, Arankas, and New Mexico.  What that means to the region is less sales tax revenue for the four-county region, fewer jobs, fewer shopping options, less commercial construction, plenty of thwarted dreams.  The human toll is significant.According to the BEE, Sacramento has the highest proportion of closed business, while nearby Placer County ranks third.

According to Postal Service Data, as of September, the number of dormant addresses in Sacramento, Yolo, Placer and El Dorado counties had jumped more than 50 percent during the recession.

On the bright side, if there is one, commercial rents have fallen sharply as supply exceeds demand. This may be a Golden opportunity for Entrepreneurs with cash can get a deal and jump-start a new business.  At the same time, its no secret that cautious and troubled banks aren’t granting many loans to launch enterprises. Many businesses and offices are stuck with rents they can’t afford, while relocation costs keep them from moving.

As consumers and companies have changed their spending patterns, the flow of money has trickled down to a standstill, especially in retail.

Statistics from the Bankruptcy Court indicate an overall 47% incease in Bankruptcy filings.

SACRAMENTO	02/01/08 – 01/31/09	02/01/09 – 01/31/10	+ / -
Chapter 7	16014	23640	47.6%
Chapter 9	1	0	-100.0%
Chapter 11	100	162	62.0%
Chapter 12	2	9	350.0%
Chapter 13	3883	5655	45.6%
Total Filings	20000	29466	47.3%
Motion	8502	9792	15.2%
Adversaries	774	799	3.2%
Closings	17742	25589	44.2%

The projected number of defaults in 2010 on mortgages is estimate to be approximately 2.5 million, according to the Department of the Treasury.  And although nobody knows for sure where where the economy is going, lack of funding for small businesses is a major problem that needs  to be addressed in order to stop the downward spiral.  As the number of small businesses closes, unemployment will continue to be a problem, affecting everything from commercial to retail.  Without easing tight credit restrictions, the trend is likely to continue.