The pandemic’s effects on local businesses have been dramatic and likely will be long-lasting, judging by the results of a survey by Greater Grays Harbor Inc.
The nonprofit group supports businesses with research and marketing, among other services. The business impact survey got 81 responses, and four out of five business said they would have some losses from the pandemic, most of them saying it will be long term. Seventeen percent said they were “somewhat likely” to close permanently. Almost half said they expected to reduce staff over the long term.
Without additional economic relief, the community should expect decreased employment levels and an increase in business closures over the next one to three years, Greater Grays Harbor said in its explanation of the 13-question survey.
The retail and hospitality sectors have been hit hard, with 85% and 92%, respectively, seeing revenue decreases. Twenty-nine percent of the respondents in retail and 32% in the hospitality industry predict a long-term employment drop of more than 30%.
Before the pandemic, hospitality and retail each contributed about 3,000 jobs to the workforce.
Forty-nine percent of respondents said they were approved for an SBA Paycheck Protection Program (PPP) loan, and 31% were approved for an SBA Economic Injury Disaster Loan. At the time of the survey, 29% of business report receiving at least some COVID-19 related grant funding, with 28% of business reporting a need for additional funding to prevent layoffs or business closure.
The survey was conducted prior to the launch of the Grays Harbor County and City of Aberdeen small business grant programs.
Greater Grays Harbor said it would share the survey results with local, state, and federal officials to demonstrate the current and future economic impact of the pandemic on Grays Harbor. A follow-up survey is planned in September.
Fifty-one percent of respondents said they missed out on either one or both of the primary economic relief tools available to support businesses. Nearly all (88%) were aware of the programs but decided not to apply. Greater Grays Harbor said this might suggest that the current programs are not meeting the needs of many businesses, or that the application processes were difficult to navigate or too burdensome.
At the beaches, half of all businesses responding reported a need for additional grant funding to prevent additional layoffs or business closure. Countywide, 27% of businesses reported that need.