Not exactly the welcome mat local business owners had in mind. A new study ranks Fresno among the nation’s worst metros for small business bankruptcies. Photo illustration by Israel Meave
published on May 15, 2026 – 2:41 PM
Written by Frank Lopez
Fresno has landed in the top 10 nationally for small business bankruptcies, ranking No. 10 among the 100 largest U.S. metropolitan areas in a new study — a sign, one local expert says, of broader economic pressures but not necessarily cause for alarm.
According to Sam’s List, an online directory for finding vetted financial professionals, the study ranks Fresno 10th nationally with 3.05 filings per 1,000 businesses. Of the Fresno metro area’s 17,060 small businesses, 52 filed for bankruptcy during the study period.
The study finds the Central Valley is carrying most of California’s closure pressure, with Bakersfield ranking third nationally at 4.05 filings per 1,000 small businesses. Riverside-San Bernardino-Ontario ranked fifth at 3.36, making three of the country’s 10 worst metros in inland California.
Tracking court filings
The study used data from the U.S. Courts bankruptcy filings by county report and the U.S. Census Bureau’s Statistics of U.S. Businesses. For each of the 100 largest U.S. metropolitan areas, Sam’s List calculated Chapter 7 small business bankruptcy filings per 1,000 small businesses — defined as businesses with fewer than 500 employees — over the 12 months ending March 31, 2025.
Chapter 7 bankruptcy, referred to as liquidation bankruptcy, involves appointing a trustee to sell all business assets, pay creditors and shut down all operations.
The top-ranked metro was Dallas-Fort Worth-Arlington, Texas, where 638 filings were recorded among 144,436 small businesses — a rate of 4.42 per 1,000, more than double the national median of 1.85.
Numbers don’t tell whole story
Rich Mostert, executive director of the Valley Community Small Business Development Center, said the numbers should be kept in perspective.
Bankruptcies are not necessarily indicative of the strength or quality of a local business community, he said. Not all bankruptcies are the same — they can be a useful tool to restructure debt and establish a payment plan.
Mostert said businesses are emerging from a period when financing was readily available and, in some cases, overutilized. They are also contending with tight margins, inflation and rising fuel costs.
In the big picture, 3.05 businesses out of 1,000 could be a “blip on the radar,” he said.
Increased small biz interest
Mostert added that the SBDC is not seeing a shortage of interest in starting and growing small businesses — in fact, it is seeing an increase in demand for its services.
“In your natural growth you’re going to have business failures,” Mostert said. “Some go out of business because of issues, some go out because they don’t want to be in business anymore. Some go out because they are outdated and [don’t] stay with the times. There are lots of reasons for these things and you have to look at the big picture to make an educated guess as to whether it’s a good thing, bad thing, or neutral.”