Long Island’s County Executives Laura Curran and Steve Bellone revealed the results of a second survey to assess the financial impact of COVID-19 on local businesses and get an update on how they’re faring as many prepare to reopen. The island wide survey is part of ongoing efforts to identify the needs of businesses, make economic projections, inform recovery strategies and advocate for state and federal support.
“The pain and uncertainty caused by COVID-19 for our small businesses, their employees and families remains constant. Loans have served as a lifeline for more than half of our businesses, but it’s clear, the need continues. With our Boost Nassau loan program and PPE giveaway, Nassau County is stepping up to ensure businesses and nonprofits have the resources they need to survive, keep their employees and build confidence in customers – a key challenge,” said Nassau County Executive Laura Curran. “In addition to doing everything I can on the County level, I am reigniting my push for further small business support from our federal partners.”
“This survey shows the gravity of the situation that small businesses face in the worst economic fallout since the Great Depression,” said Suffolk County Executive Steve Bellone. “The information gathered will inform our ability to continue to develop programs on a regional basis that meet the financial needs of employers looking to recover and rehire.”
“Helping small businesses and understanding the economic impact of this shutdown are ways Hofstra can contribute to the reopening and partner with Nassau County,” said Hofstra University President Stuart Rabinowitz. “This data allows us to provide federal and state agencies with the information to assist businesses, and our Long Island economy, in real, tangible ways.”
This is the second survey created and hosted by Hofstra for this effort. Within 10 days of putting the call out to businesses of all sectors and sizes to participate, about 1,300 responded from across Long Island. In addition, businesses who participated in each county’s initial surveys were also contacted and urged to participate. This survey took a deeper dive than previous surveys with questions about the use of federal aid like the Payroll Protection Program (PPP). It also included questions specific to the non-profit community which has been hard hit by the crisis and plays a critical role in addressing the many human struggles that residents are facing.
Who Responded:
- 55% of the respondents were not designated an essential business.
- 80% of respondents are small businesses with 10 or less employees.
Key Findings:
- 46% already have laid off employees.
- 27% are not laying off employees and 23% are not sure.
- Among those who already laid off employees, 84% laid off 10 or less employees, and 84% anticipate future layoffs of at least 10 employees.
- 37% are bringing back all workers after the NY Pause is lifted for their industry and 36% cannot determine if they are yet.
- For the 2020 fiscal year, 38% anticipate between a 21-50% decrease in revenues and nearly 40% are projecting an over 50% decrease in revenues.
- 70% of businesses say the impact of COVID-19 is worse than expected from two months ago.
Keen Interest in Loans:
- 52% secured a loan already and 12% more plan to apply.
- The majority of loans (50%) are between $500- $50,000.
- 46% experienced difficulty applying for a loan.
- 28% currently have a loan pending with the SBA and for a majority it’s been pending for more than a month.
- 78% secured PPP loans and 62% SBA EIDL loans (some businesses applied for both).
Key Challenges:
- Consumer confidence: customers are too afraid of the public health hazards to patronize businesses.
- Consumer confidence: customers do not have the financial security to patronize businesses.
- The financial impact of a phased re-opening for specific sectors.
Top Responses for How Government or Non-Profits Can Assist:
- 26% say micro-loans from sources other than the MTA.
- 19% say providing clear guidelines on social distancing and use of PPE.
- 17% say providing PPE for employees.
What’s Next:
The results of this survey will be utilized by consulting firm HR&A in their study on how each industry sector on Long Island and their workforce are faring – retail, hospitality, construction/development, healthcare, commercial real estate, manufacturers, higher education, non-profits and others. The analysis will ensure advocacy and better inform a regional recovery strategy based on real data.
