Business Services for COVID-19 impact March 25, 2020
Impact on the Economy Today, it ’ s too early to determine the long- term impact on supply chains, manufacturing, and the American economy. Given the importance of consumer spending to the American economy, much will depend on the confidence of the American public. US Chamber of Commerce, March 21, 2020
Impact on the Economy A survey of 34 economists by the Wall Street Journal revealed that a recession is on the horizon, with median forecasts ranging from 4.5% to 6.3% unemployment in the second quarter of the year and 4.5% to 7% in the third quarter. Median predictions for GDP growth are between -10% and -4% in the second quarter and -3.8% to 1.7% in the third quarter. International Business Times, March 21, 2020
Impact on the Economy • According to a new survey from Veem, 27% of businesses expect the coronavirus to have a moderate to high impact on their revenue. Another 30% expect the virus to have a moderate to high impact on their supply chain. • Even more revealing, over half or 52% say they are taking measures to prepare for an economic slowdown. They are increasing pricing, changing suppliers, decreasing operational costs or protecting cash flow. Small Business Trends, March 18, 2020
Impact on the Economy • Locally, our world is changing. Three weeks ago we were talking job fairs and looking to reduce the number of open positions, now we are preparing for the onslaught of job displacements. • The financial impact of social distancing has not been fully analyzed, but with Governor Northam ’ s order to close all dine-in options, local restaurant revenues are declining and staff are feeling the effects in less hours and lower pay.
Impact on the Economy • The 30-day closure of the hospitality industry and non-essential business will have a significant impact on the community. SBA disaster loans are available to businesses in need for operating capital. • We are beginning to hear of supply chain disruptions, making it more difficult for industry to function. If your company is having difficulties at this time, please let us know.
Impact on the Economy • Fear among the workforce is real. Industry has not experienced absenteeism yet. They are preparing for it to occur as the virus reaches our area. • Additional cleaning is taking place in many industries. There is a new grant for smaller business and industry to buy cleaning supplies or technology for telecommuting that will be administered through the state PDCs. More information will be available later this week.
Impact on the Economy • The level of unemployment is rising locally, the January rate was 4.7%. The impact will not be truly known for a couple of months due to the lag in reporting.
What are we doing? • As of January 31 st , we has a disaster designation for the COVID-19, making our area qualify for SBA Federal Disaster Loans. https://disasterloan.sba.gov/ela/Declarations/Declaration Details?declNumber=6063685&direct=false • The US Small Business Administration ’ s Coronavirus Preparedness Webpage offers resources for employers https://www.cdc.gov/coronavirus/2019- ncov/community/organizations/businesses- employers.html
What are we doing? • Governor Northam has directed that the one week waiting period and the requirement to conduct a weekly job search both be suspended for those receiving unemployment insurance benefits. • Additional SBA economic injury disaster loan program information is now available; visit the Small Business Development Center for help applying for Economic Injury Disaster Loans and check out their new, easy-to-follow disaster loan guide.
State and Local Resources • Governor ’ s Office has developed FAQs for Executive Order Fifty-Three. https://www.governor.virginia.gov/media/governorvirgini agov/governor-of-virginia/pdf/Frequently-Asked- Questions-Regarding-EO-53.pdf • Information about the Port of Virginia is available on their website. http://www.portofvirginia.com • Woods Rogers Legal Updates https://www.woodsrogers.com/tag/coronavirus/
State and Local Resources • Longwood Small Business Development Center • Halifax County Chamber of Commerce • Halifax IDA
Contact Info Brian Brown Executive Director - Halifax IDA 434-471-0292
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