The Economic Development Corporation of Utah has released the results of a survey of Utah businesses about the early impacts of the COVID-19 virus, showing 92 percent of respondents have experienced at least “somewhat negative” impacts.
The survey, sent out March 18 in partnership with the Utah Economic Response Task Force, shows that nearly 60 percent were experiencing an “extremely negative” impact from the virus.
The virus impacted company revenue in an extreme amount at 56 percent of the companies, while 21.3 percent had revenues affected somewhat.
Two thirds, or 67.6 percent, of respondent companies saw a drop in demand for their business. They were managing their revenue losses by using money from savings, 45.9 percent; cutting costs, 40.1 percent; and reducing their workforce, 37.7 percent. Already, 65.9 percent had reduced their spending due to uncertainty caused by the virus, and 50.9 percent had rescheduled or canceled large meetings and events.
About one in five respondent businesses said they needed no financial assistance to handle the virus’ effects. About one-third said they needed no- or low-interest loans of up to $50,000.
Respondents were generally looking for the impact to last a while, with 40.2 percent expecting it to be six months or more and a mere 1.5 percent anticipating it to last less than one month.
The results showed that state and local policymakers should consider provide low- or no-interest loans or grants for operating capital, including federal contracts; offer expansion and/or acceleration of unemployment benefits; and offer tax deferment at the state level for Utah sales, withholding, payroll and/or income taxes.
Businesses, according to the study, should consider offering low- or no-interest loans or grants; provide flexible repayment options on loans and billings, including delaying foreclosures; and offer assistance, donations, equipment and more to support the local healthcare industry and those in need.
Utah residents should consider increasing online spending at Utah companies; continuing to shop when able to safely do so; and “be the solution” through social distancing, improving hygiene and supporting those in need.