COVID-19 R 19 Reco ecovery Strateg egies f es for Small Busin iness Dis Distric icts Jul uly 28, 28, 2020 | 2: 2020 | 2:00 P 00 PM - 3: 3:30 P 30 PM
Presenters Elizabe beth D Demet etriou ou A AICP, Director, Economic Development, LISC Laris isa O Ortiz iz, Managing Director, Research + Analysis Streetsense Nur Asr sri A AICP CP, Senior Research Strategist, Research + Analysis Streetsense
LISC Commercial District Recovery Guide
Emergency Management Typically While all three phases of Covers Three Phases: emergency management are critical to ensuring sustained recovery and rebuilding of our communities, we should Phase 3 Phase 1 be focused now on the Emergency Response: Response Management actions that need to be Prepare undertaken following the occurrence of the pandemic. Phase 2 Recover
Agenda Impact of COVID-19 on Small Businesses and Commercial Districts Building on the Work of Local Governments in Small Communities Phase 1: Response Phase 2: Recovery
Impact of COVID-19 on Small Businesses & Commercial Districts 6
The Truth About Small Business Cash Flow About 50% of all small businesses have a cash flow reserve of 27 days . Minority-owned small businesses were approximately twice as likely to be classified as “at risk” or “distressed”. 16 days 18 days 19 days 20 days 21 days 23 days 28 days 30 days 32 days 33 days 33 days 47 days Source: JP Morgan, 2016; Small Business Financial Health in Urban Communities. Farrell, Wheat, Grandet, 2019. Restaurants Repair & Retail Construction Personal Wholesales Metal & Health Care High-Tech Other Prof High-Tech Real Estate Maintenance Services Machinery Services Manufacturing Services Service 7
Audience Poll What percentage of • 20% or fewer businesses on your Main • 21-30% St/commercial district • 31-40% closed temporarily as a • 41-50% result of COVID-19? • More than 50% • Not sure
Minority-owned businesses faced difficulties accessing emergency capital Early surveys and reports suggest that 90% of small businesses of color have been excluded from SBA’s Paycheck Protection Plan . 9
Audience Poll What percentage of • 25% or fewer businesses in your • 26-50% community do you • 51-75% estimate to be Women/ • 76-100% Minority-owned? • Not sure
+25% Changing Business E-commerce Models Activity A survey from early April found that 63% of respondents did not have online sales +62% capability. However, as a result of state-ordered Curbside, stay-at-home measures, consumer behaviors BOPIS have intensified toward online shopping. Source: National Main Street Center, 2020; McKinsey, 2020 11
35% 30% Heightened Health and 25% Safety Expectations 20% The use of masks and physical barriers and 15% cleaning are top priorities to consumers as they decide whether 10% to shop in-store. 5% 0% Masks and Cleaning and Physical Contactless Store Regulations Employee and Physical Barriers Sanitization Distancing Payment Customer Health Checks Source: McKinsey, 2020 12
Building on the Work of Local Governments in Small Communities 13
In The Audience Today Thank you for responding to the pre-session questionnaire. Pennsylvania $135,000- 50% 45,000 South Carolina $25Billion California Average Share of Essential Median Town/ Village Range of Organizational Top Geographies Services on Main St Population Size Budgets 14
Place-based and community organizations are among the most critical partners in emergency management. They are often the face of resource allocation and technical assistance — the first place that residents and businesses turn to when they are in need. Broad Street Market vendors maintaining access to fresh, healthy food throughout the COVID-19 pandemic receiving financial support in Harrisburg PA – total population 49,229.
Pre-COVID Underlying Issues In Small Towns/Rural Places Lower Spending Power Limited Access to Capital Labor Pool Shortage 86 percent of persistent p poverty y In 2016, nearly 1 in 5 rural r residents Between 2012 and 2017, rural count unties - poverty rates of 20% or was 6 65 o or older and between 2010 counties experienced considerable le more in 1990, 2000, and 2010 – are declin ines i in ba bank br branches. These and 2016, the rural rural. affected rural counties tend to be popu po pulation experience ced a a 0. 0.4% 4% decline ne. composed of residents with fewer years of education and have a greater proportion of African American residents. Source: Housing Assistance Council Source: Federal Reserve Source: US Census Bureau
Staying nimble, Limited responsive + resources + capacity working creatively
Phase 1: Response 18
“ Outreach: Serve as the conduit for information. Lead and support outreach efforts, Coordinate resource distribution Ensure that your businesses have the most up-to-date information.
OUTREACH Establish a business contact list Identify an accessible platform/tool to communicate with key stakeholders Coordinate resource and information tracking with municipal agencies, economic development organizations, local chambers, merchants' associations, and other local and regional leaders Curate, publish, update, and crowdsource a list of relevant resources and information Data Collection Work with local media outlets to share your district's story
OUTREACH Establish a business contact list Identify an accessible platform/tool to communicate with key stakeholders Coordinate resource and information tracking with other local and reginal leaders Curate, publish, update, and crowdsource a list of relevant resources and information However, these tools require access to the Internet via smartphones a and nd/or c comput uters. For districts with stakeholders that skew older, these options may not be viable. Instead, schedule d daily ly p phone calls lls and in in- per person c chec eck-ins ns if it’s safe to access your district.
Best Practice: DOWNTOWN KENOSHA INC. (KENOSHA, WI) A Facebook Private Group was set up as a resource center for downtown businesses during COVID-19. Group Membership is exclusive to downtown street- level restaurants and retailers.
FRISCO DOWNTOWN MERCHANTS ASSOCIATION (FRISCO, TX) The Merchants Association established a daily digital meeting for businesses via video conferencing app, Zoom, to discuss any issues and share resources quickly. 23
Audience Poll + Chat What is the main • In-person method in which you • By phone have been conducting • Online outreach to • No outreach conducted stakeholders? Share the types of apps/platforms you are using in the chat!
OUTREACH Establish a business contact list Federal, State, County and Municipal Grants Identify an accessible platform/tool to and Technical Assistance communicate with key stakeholders Safety and Hygiene Guidelines by Health Officials Coordinate resource and information tracking with Trade Association resources and guides other local and reginal leaders Curate, publish, update, and crowdsource a list of National Restaurant Association relevant resources and information U.S. Chamber of Commerce Work with local media outlets to share your district's story The Food Industry Association Food & Beverage Issue Alliance American Barber Association Professional Beauty Association
OUTREACH Work with local media outlets to share the district's story and market the reopening of your district National Restaurant Association U.S. Chamber of Commerce The Food Industry Association Food & Beverage Issue Alliance American Barber Association Professional Beauty Association
“ Data Collection: Accurately and continually assess on-the-ground conditions. Tailor assistance and recovery programs based on good information and data.
DATA COLLECTION Build partnerships with other organizations to conduct surveys and assess changes in the district Use a free survey tool for smaller groups Use existing communications tools to market surveys widely Keep the survey short (<10 min) Review other available data sources to Translate the survey across common track changes in the state, city, and district languages in your community Implementation Ask for basic business details, finances, operations, workforce, and customer interaction/ engagement
What to track and monitor? Busi usine ness s Financ nces Workforce Cust ustomer Bas asic ic Detai ails + Operatio ions Conf nfidenc nce Impact on workforce– Name of business • • furlough, layoff Current status of Perception of safety Type of business • • • business — open / returning to stores Contact person/ closed / only take-out • Anticipated changes details • and delivery in spending habits Location of business Any adaptations in • • business model Property – own/lease, • size of storefront Impact on company • finances/ loss in Length of time in • revenue business Amount of cash • reserve Applications to relief • funding
Audience Poll + Chat Have you been engaged • Yes in data collection? • No • In Progress Share the types of metrics you are tracking in the chat!
Phase 2: Recovery 31
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