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A Tampa, Fla.-based food hall operator has filed for chapter 11 protection to reorganize the debt on an Orlando location, the Tampa Bay Business Journal reported. Jamal Wilson, who launched his food halls with The Hall on Franklin in 2017, told the Tampa Bay Business Journal on Wednesday that he is reorganizing his debt "due to high construction costs" during the COVID-19 pandemic. Wilson's Orlando location, The Hall at the Yard, opened in 2021. The bankruptcy filing will not affect day-to-day operations at The Hall at the Yard, Wilsons said, and he doesn't plan to file for bankruptcy protection for any other locations. "The cost of the tenant improvements was higher than expected," according to the bankruptcy filing. "Unfortunately, the debtor borrowed funds from various MCA lenders. The debt to the MCA lenders and the exorbitant fees and costs associated therewith has been crippling. The debtor filed this case to restructure its debts and reorganize for the benefit of all creditors." The filing lists 10 MCA lenders who are owed a combined $901,055, though the amount owed to G and G Funding Group LLC is unidentified. The lenders are owed amounts ranging from $44,000 to $181,000. Secured debt also includes a $4.2 million loan to Newtek Small Business Finance. There is also a $359,000 Paycheck Protection Program loan from Kabbage LLC that is "likely unsecured," according to the filing. The largest unsecured creditors have claims that range from unknown to $119,000.

A new survey found that U.S. small business confidence has dropped to a six-month low and found that inflation and difficulty in filling positions were top issues cited, The Hill reported. The National Federation of Independent Business announced yesterday that its Small Business Optimism Index decreased by 2.1 points in December to 89.8, which is the lowest since June and marks the twelfth consecutive month that the index was below its 49-year average of 98. Small business owners who expect better business conditions over the next six months dropped by 8 points between November and December, falling to a net-negative of 51 percent, according to the release. Inflation remained a top issue for small-business owners, as 32 percent said it was the top problem in their operations. Worker shortages also remained a problem, as 41 percent of business owners reported that open job positions were difficult to fill, which is a slight downtick from the 44 percent who reported the same issue in November.

Many small businesses that received federal pandemic aid are now on the hook for repayments, and some say the timing couldn’t be worse, the Wall Street Journal reported. WrightIMC, based in Allen, Texas, borrowed $150,000 from the Small Business Administration’s Covid-disaster loan program two years ago. The 20-person digital marketing agency made its first $1,600 loan payment this month, just as ad sales are softening. The disaster loan “has certainly helped us to survive and avoid layoffs,” said owner Tony Wright, who has frozen hiring and is cutting expenses as customers tighten their belts. “Ironically the payback is coming at a time when we are seeing a steeper decline in business than during the pandemic,” he said. “Maybe this isn’t the best time to have everyone start paying back.” The SBA issued roughly $390 billion in COVID-19 disaster loans to nearly four million small businesses and nonprofits. Unlike forgivable loans issued through the federal Paycheck Protection Program, the disaster loans were designed to be repaid. Now after several deferrals, the bills are coming due. For 1.2 million COVID-19 disaster loans, the first payments are due this month; another one million loans enter repayment in January. Borrowers began repaying 427,000 loans in October or November.