LI Business Survey Shows Coronavirus Impact Worse Than Expected

Bohemia NY

05 June, 2020

7:00 PM

Description

LONG ISLAND, NY — A new survey shows nearly half of Long Island businesses laid off workers during the coronavirus pandemic, and of those that did, nearly all expected to let go at least 10 workers in the future. That's according to a stunning, second survey created and hosted by Hofstra University aimed at gauging just how severe the pandemic has had on businesses. About 1,300 businesses responded to the second questionnaire, which also sought information about procuring federal aid such as the Payroll Protection Program. Laura Curran and Steve Bellone, the Nassau and Suffolk county executives, respectively, revealed the results of the survey Friday. Here's what they found: Who Responded 55 percent were not designated an essential business80 percent are small businesses with no more than 10 workersKey Findings 46 percent laid off workers27 percent are not laying off employees and 23 percent remain unsureAmong those who laid off workers, 84 percent laid off 10 or fewer people, and 84 percent expect future layoffs of at least 10 people37 percent are bringing back all workers after the stay-home order is lifted for their industry, and 36 percent cannot yet determine if they will38 percent expect between a 21-50 percent drop in revenues and nearly 40 percent expect a more than 50 percent drop in revenues70 percent of businesses say the impact of COVID-19 was worse than expected from two months agoKeen Interest in Loans 52 percent secured a loan already and 12 percent more plan to applyHalf of those loans are between $500 and $50,000 46 percent experienced difficulty applying for a loan. 28 percent have a loan pending with the U.S. Small Business Administration and most said their loan has been pending for more than a month 78 percent secured PPP loans and 62 percent SBA EIDL loans (some businesses applied for both). Key Challenges Customers are too afraid of public health hazards to buy from businessesCustomers do not have the financial security to buy from businessesThe financial impact of a phased reopening for specific sectors. How Government and Nonprofits Can Help 26 percent say micro-loans from sources other than the MTA19 percent say providing clear guidelines on social distancing and use of personal protective equipment, such as masks and gloves.17 percent say providing PPE for workersConsultants from HR&A will use the survey in their study on how each industry on Long Island and their workforce are faring, including retail, hospitality, construction/development, healthcare, commercial real estate, manufacturers, higher education, nonprofits and others.