COVID-19 BUSINESS IMPACT ASSESSMENT

MAY 26, 2020

COVID-19 BUSINESS IMPACT ASSESSMENT

This survey was conducted by the Coachella Valley Economic Partnership (CVEP) with the

support of the Coachella Valley Economic Recovery Team (CVERT). CVERT is a coalition

of economic, business, government, and tourism organizations from across the Coachella

Valley, working together to share resources and best practices as we move towards economic

recovery. CVEP is also a contributing member of the BR|E COVID-19 Response Network, a

national collaboration of economic developers working to measure the impacts of this crisis.

PURPOSE OF THE SURVEY

Assess business impacts of COVID-19 within the

Coachella Valley

• The survey was conducted between April 29, 2020

and May 6, 2020. This survey is a follow-up to a

previous survey conducted from March 24, 2020 and

March 31, 2020. Please note that the Economic Injury

Disaster Loan and Paycheck Protection Programs were

available at the time of this survey, but were not yet

available when the first survey was conducted.

• CVEP distributed the survey with the assistance of

the CVERT Network. It was distributed primarily via

email and secondarily through social media.

• A total of 201 participants completed the survey.

• Cities with the most engagement: Palm Desert,

La Quinta, and Palm Springs.

TYPES OF QUESTIONS

• Effects of COVID-19 on business operations

• Current workforce challenges and concerns

• Uncertain future – revenue and financing challenges

RESPONSE OVERVIEW

Effects of COVID-19 on business operations

• 38% of respondents are open for business, while

62% are closed. This is a near complete reversal from

the previous survey, where 62% of respondents were

open for business, and 31% closed. We suspect this is

due to the different mix of industries who responded,

with a greater response from small businesses in the

service industries, e.g. salons/stylists and small retail.

Our local chambers of commerce received greater

response from members for this survey.

• Most business closures occurred between March 16

and March 23.

• For the minority of businesses still open, the highest

percentage (40%) are operating at a 61% or more level

from normal. The average on-site operating level is 55%.

• Most open businesses are receiving and delivering

goods and services at a 61% or more level.

Current workforce challenges and concerns

• Most respondents (85%) were small businesses

with 10 or less full-time and/or part-time employees.

• 63% of businesses have laid off employees due

to COVID.

Uncertain future – revenue and financing challenges

• Nearly all respondents (99%) have seen a decrease in

revenue. In the first survey, only half of the businesses

surveyed even answered the question: “Has your

company’s weekly revenue experienced an increase or

decrease as a result of COVID-19?” But of the half that

did, 80% had already seen a decrease in revenue.

• 56% have seen revenue declines from 91 to 100

percent.

• Only 37% expect to survive a business shutdown of

9 weeks or more, down from 53% in the last survey.

However, respondents reported they could survive an

average 17 week shutdown, as compared to 11 weeks

in the last survey. We estimate that this is due to the

availability of funds from the Economic Injury Disaster

Loan and Paycheck Protection Programs.

• Half of respondents have contacted their bank about

bridge loans or financing.

• 58% have applied for an SBA Economic Injury

Disaster Loan, with 19% successfully receiving a loan

and 39% pending.

SOME THOUGHTS, CONCERNS,

OR ACTIONS SHARED

• “PPP Loan needs to work for restaurants. It’s difficult

to spend all the $$ on payroll in an 8-week period when

you’re still mandated by the government to be closed.

More loans need to be available to business owners.”

• “Removal of barriers to construction - primarily

within housing sectors and reduction of fees.”

• “A recognized and uniform way to protect

employees and customers (i.e. PPE requirements and

other standards).”

• “To not have the EIDL tied to the number of

employees a business has. That isn’t what the cares

act wording says but the SBA has made it tied to that.

Businesses with employees can get the PPP forgivable

loans. My business cannot, and there are plenty of

small mom & pop businesses, just like mine, that need

help to survive!”

• “We need commercial landlords to negotiate or

forgive rent on all non-essential businesses that have

been forced to shut down.

• “Knowing that we need to have critical supplies

manufactured in the USA - face masks, cleaning,

disinfectant, paper goods, etc.”

• “Develop operational guidelines for businesses that

will allow them to re-open while still protecting their

employees and their customers from the coronavirus.”

• “Coachella Valley SBA has been very helpful.”

• “Take into consideration businesses like ours that

just opened their doors prior to shutdown; we invested

time and money for 8 months building our restaurant.”

• “Help for the self employed.”

• “Support for cottage food kitchens for home-based

business owners like us who have gone unnoticed.”

• “Identifying to the public which businesses are

essential and which are not. I field calls all day long

surprised we are open for business.”

• “That the true small businesses were made a priority.

Financial support keeps going to the larger players.”

• “Mortgage deferral. Utilities, phone, internet, etc.

deferral programs.”

• “There needs to be more focus on the sole

ownership/proprietor, self employed businesses. We

are the artists who work to bring healthy joy to others.

We teach others to be healthy and move well. We

bring their ideas to life. And we are ignored.”

• “Improved planning and more proactive in regard

to potential issues. Oversight of stimulus packages so

funds actually reach the intended recipients.”

• “I don’t qualify for other programs as I can’t show

a profit from last year. My selling season was just

starting when COVID caused all events where I sell to

cancel. What about supporting those like me?”

• “As a small business we have a low margin and at

this point, we will be opening back up as a start up.

This typically requires cash which we are exhausting

to maintain the facility while closed.”

• “I would like to have clear safety and hazard

standards in construction clearly explained. I can’t

keep up with every city and ordinance being different

because my work is done throughout the desert.”

OPERATIONS & SUPPLY CHAIN

0

10%

20%

30%

40%

50%

60%

70%

80%

Open Closed

CURRENT OPERATING STATUS

62%

38%% O

F R

ES

PO

ND

EN

TS

0

5%

10%

15%

20%

DATE OF BUSINESS CLOSURE

% O

F R

ES

PO

ND

EN

TS

What is your current operating status?

What was the date of closure? (this question was asked of businesses reporting being closed - 85 responses)

0

10%

20%

30%

40%

50%

60%

50%

55%

0%-20% 21%-40% 41%-60% 61% or more

BU

SIN

ES

SE

S

Average

Median

CURRENT BUSINESS OPERATING LEVEL

19% 18%

23%

40%

0

10%

20%

30%

40%

50%

60%

70%

80%

0%-20%

BU

SIN

ES

SE

S

Average

Median

21%-40% 41%-60% 61% or more

76%80%

3%

8%

17%

72%

PERCENTAGE OF SUPPLIES/SERVICES ABLE TO RECEIVE

0

20%

40%

60%

80%

100%

0%-20% 21%-40% 41%-60% 61% or more

BU

SIN

ES

SE

S

Average

Median

70%

90%

15%

4%

17%

64%

PERCENTAGE OF GOODS OR SERVICES ABLE TO SHIP/DELIVER

What is your current business operating level? (these questions were asked of businesses reporting being open - 62 responses)

What percentage of your supplies/services are you able to receive? (60 responses)

What percentage of your goods or services are you able to ship/deliver? (53 responses)

WORKFORCE

0

20%

1<10 11<20 21<30 31<40 41<50 51+

40%

60%

80%

100%

85%

6% 4%0% 2% 3%

FULL-TIME EMPLOYEE COUNT

BU

SIN

ES

SE

S

0

20%

40%

60%

80%

100%

1<10 11<20 21<30 31<40 41<50 51+

88%

6%3% 1% 2%

0%

PART-TIME EMPLOYEE COUNT

BU

SIN

ES

SE

S

What was your total employee count prior to COVID-19?

Has your employee count changed due to COVID-19 specifically?

0

10%

20%

30%

40%

50%

60%

70%

80%

New Hire Laid-off Furloughed Terminated

13%

63%

12% 11%

EMPLOYEE COUNT CHANGE

BU

SIN

ES

SE

S

EMPLOYEES

If employees are temporarily not reporting for work, what percentage will be paid during the work hiatus?

0%-25% 26%-50% 51%-75% 76%-100%

PERCENTAGE OF EMPLOYEES PAID DURING HIATUS

0

10%

20%

30%

40%

50%

60%

70%

80%

78%

7%5%

10%

BU

SIN

ES

SE

S

FINANCE

-100%

-80%

-60%

-40%

-20%

0

20%Increase

1%

Decrease99%

REVENUE INCREASE/DECREASE EXPERIENCED

BU

SIN

ES

SE

S

0

10%

20%

30%

40%

50%

60%

6%

2%4% 5%

6%9%

13%

56%

21-3

0%

31-4

0%

41-

50%

51-6

0%

61-7

0%

71-8

0%

81-

90%

91-1

00

%

ESTIMATED REVENUE DECREASE

BU

SIN

ES

SE

S

ESTIMATED WEEKS OF SURVIVAL

0

5%

10%

15%

20%

25%

30%

35%

40%

0-2

18

16

14

12

10

8

6

4

2

0

16%

3-5

21%

6-8

27%

9+

37%

BU

SIN

ES

SE

S

WE

EK

S

Average

Median

Has your company’s weekly revenue experienced a decrease as a result of COVID-19?

How many weeks of a business shutdown would you estimate your business can survive before closing? (response not required: 115 respondents)

Has your company’s weekly revenue experienced an increase or decrease as a result of COVID-19?

CONTACTED BANK ABOUT FINANCING

0

10%

20%

30%

40%

50%

Yes

No

Unn

eces

sary

Lend

er N

ot R

espo

ndin

g

50%

22%

12%

16%

BU

SIN

ES

SE

S

Have you contacted your bank about a bridge loan or other financing? (response not required: 124 respondents)

APPLIED FOR SBA ECONOMIC INJURY DISASTER LOAN

Yes

-Suc

cess

ful

Yes

- Pe

ndin

g

Yes

- U

nsuc

cess

ful

No

Do

Not

Qua

lify

I'd li

ke m

ore

info

rmat

ion

0

5%

10%

15%

20%

25%

30%

35%

40%

40%

39%

19%

23%

10%

2%

BU

SIN

ES

SE

S

APPLIED FOR PPP

Yes

-Suc

cess

ful

Yes

- Pe

ndin

g

Yes

- U

nsuc

cess

ful

No

Do

Not

Qua

lify

0

5%

10%

15%

20%

25%

30%

35%

15%

35%

10%

22%

19%

BU

SIN

ES

SE

S

Have you applied for a US Small Business Administration Economic Injury Disaster Loan? (response not required: 122 respondents)

Have you applied for the Payroll Protection Program? (response not required: 123 respondents)

SURVEY PARTICIPATION

INDUSTRIES

0 5 10 15 20 25 30 35

Administrative Support and Waste Management and Remediation Services

Agriculture, Forestry, Fishing and Hunting

Manufacturing

Information

Transportation and Warehousing

Wholesale Trade

Consctruction

Public Administration

Health Care and Social Assistance

Professional, Scientific, and Technical Services

Arts, Entertainment, and Recreation

Real Estate and Rental and Leasing

Retail Trade

Accommodation and Food Services

Other Services

1%

1%

1%

2%

2%

2%

3%

3%

4%

8%

9%

9%

10%

15%

32%

BUSINESSES

Which one of the following best describes your organization’s primary industry? (only one selected)

Other Services includes: automotive repair and services, equipment repair, barber/beauty shops, funeral services, dry cleaning, churches and religious organizations, civic and social organizations, business and professional associations, and labor union organizations.

LOCATIONS OF BUSINESSES THAT PARTICIPATED IN SURVEY

Palm Desert

La Quinta

Palm Springs

Indio

Cathedral City

Rancho Mirage

Desert Hot Springs

Twentynine Palms

Indian Wells

Temecula

Thousand Palms

El Centro

Torrance

27%

25%

13%

10%

7%

6%

5%

2%

2%

1%

1%

1%

1%

0 5% 10% 15% 20% 25% 30%

BUSINESSES

3111 EAST TAHQUITZ CANYON WAY • PALM SPRINGS, CALIFORNIA 92262PH: 760.340.1575 • FX: 760.548.0370 • WEB: CVEP.COM