In a survey of 765 Whatcom County businesses, about half reported being closed, 405 said they laid workers off since the coronavirus outbreak began and 195 said that they will need to do layoffs in the next two to four weeks if the situation doesn’t change.
The survey, conducted by the Port of Bellingham's Regional Economic Partnership (REP), collected responses between March 26 and April 14. Nearly half the respondents (337) were in the services sector, which is significant because that sector often requires in-person meetings or appointments and may be disproportionately impacted by the stay-at-home order, according to the REP's report on the survey. The report's authors also noted that results should be interpreted within limits, as responses weren’t balanced across sectors or geographic area. Thirty-two businesses from Blaine and Birch Bay did respond to the survey.
The county plans to use the survey to help chart a path to recovery, county executive Satpal Sidhu said in a news release.
Survey highlights
In the survey, 51.6 percent reported that their business was open in some fashion. In the service, construction, retail, recreation, tourism and marine sectors, more businesses reported being closed than open. In manufacturing, technology, agriculture, forestry and public agency sectors, respondents reported that more businesses were open than closed.
About 450 who responded provided an estimate of losses incurred in the outbreak if business goes “back to normal” by May 15, which state and local health departments say will not happen. In total, those businesses estimated they would incur more than $28 million in losses, or an average of $63,112 per business, by mid-May.
Of survey respondents, 204 said their business had the ability to allow staff to work from home, 410 said they did not have that ability, and 180 had instituted a work from home policy.
The survey also asked businesses about the impact of restrictions at the Canadian border. About two-thirds said they haven't been impacted by border closures, while many of the remaining businesses said the restrictions could impact them significantly. Nearly one quarter of respondents said that 25 percent or more of their revenue comes from Canada.
What would help?
Respondents said the following government actions would be most helpful to their businesses: expanding and streamlining small business loan programs, a moratorium or cancellation of B&O taxes, and expanding unemployment insurance eligibility.
“The need for relief and assistance is immense and it is critical to get direct cash transfers and grants to businesses in need as quickly as possible” said Don Goldberg, port director of economic development.
In a REP's full report on the survey results, it came to the following conclusions:
- Businesses need direct cash transfers and grants as soon as possible.
- Traditional tools for restoring the economy have so far been insufficient.
- Loans and additional debt are not helpful to many small businesses – many reported carrying a high debt load before the outbreak – though businesses will take on more debt if it’s their only option.
- More tools need to be made available for different business types and operations such as sole proprietors, agriculture, fishing including tendering and processing, and other industries that rely heavily upon contract workers.
The full report is available at bit.ly/2WdbCD0
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