While the pace of bankruptcies in Western Washington is accelerating, there has been much less of an increase in North Central Washington.
Ninety-six businesses in Western Washington declared bankruptcy in April, more than double last year's figure, while the number of families seeking relief from creditors continued to climb.
Business filings are a fraction of total bankruptcy filings, but have a ripple effect by contributing to unemployment and households' financial distress.
In the first four months of 2009, there were about 9,750 bankruptcy filings — business and personal — in Washington state. That was up more than 50 percent from a year ago, according to federal bankruptcy court statistics compiled by Automated Access to Court Electronic Records, a bankruptcy management and data company.
But so far, that hasn't been the story in North Central Washington.
In Chelan County there were 24 new bankruptcy filings in April, an increase of 10 from the number filed in April 2008, according to AACER. In Douglas County, there were 16 bankruptcy filings in April, four more than there were in April 2008. In Okanogan there were 11 bankruptcy filings, the same number as there were in April 2008. In more populous Grant County, there were 38 filings last month, six more than in April 2008.
High unemployment and a housing-market downturn have driven the increase in bankruptcies. So has a tightening of credit, including loans backed by the federal Small Business Administration.
Although the rate of bankruptcies is increasing, the state ranks 21st in per capita filings. Up through March, California led the nation with 41,700 consumer and business filings, followed by Florida with 20,215. Georgia and Illinois were next with more than 17,000, while Michigan was right behind with nearly 17,000.
"Even though lenders have the benefit of government guarantees on these loans, that hasn't really made a heck of a lot of difference in their willingness to advance credit to these borrowers," said Mark Costello, a spokesman for the SBA's Seattle district office.
But the new economic-stimulus program is starting to kick in: Costello says SBA lending is up one-third since higher loan guarantees and other changes went into effect in mid-March.
The Seattle Times and The Wenatchee World contributed to this report.