The Kobeissi Letter reports a surge in US small business bankruptcies, with Subchapter V filings reaching a record 2,221 year-to-date. This bankruptcy category, designed for smaller debts, is seeing activity levels comparable to recessionary periods, suggesting significant distress in the sector. Adding to the economic concerns, Bank of America data cited by Forbes indicates that 88% of small and mid-sized business owners report inflation impacts. In response, a majority plan to increase prices or reduce spending in the coming year, signaling continued economic contraction risks.