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Keeping our Local Economies Healthy

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9 Tactics for Economic Developers to Reduce the Impact of COVID-19 on Businesses

By: Tony DeLisi, Vice President

Most of us did not expect a global pandemic to kick off the next economic slowdown. But coronavirus is here, and it is already profoundly impacting our global and local economies. Economic developers cannot fully insulate their communities from global market changes, but we can and must act swiftly to protect our local economies from the oncoming tide of coronavirus disruption.

Social distancing is emerging as the preferred strategy to slow the spread of the virus and minimize the burden on our healthcare infrastructure. Aggressively adopting this strategy is necessary to protect lives, but it may also have a devastating effect on local economies.

For some communities, like those in the Seattle region, this threat has already been realized. With many large employers telling their employees to stay home, local restaurants, services, hotels, and other businesses have seen their sales plummet. For other communities without diagnosed cases, like Austin, preventative measures such as the cancellation of SXSW have already taken a similarly heavy toll on local businesses.

If we do not act now to support our businesses and the people they employ, the ripple effects will wreak havoc across the entire economy. Coronavirus is not a natural disaster in the traditional sense, but it is having similar effects – perhaps longer lasting. According to a study by the Institute of Business and Home Safety, 25% of small businesses do not reopen after a major disaster – and we could potentially see the effects of this pandemic impact businesses for longer than a wildfire or flood.

Thankfully, many of us have time to prepare for the effects of a socially distanced economy and ensure our businesses, along with people, survive these challenging times. Every community will be affected differently, but all must take a strategic approach to addressing specific local needs and creating resources to support business and people. Drawing from our experience in resilience and recovery planning, Avalanche offers the following nine tips for economic developers to propel action:

  1. Ensure Safety First – Protection of human life should be foremost in all efforts. Economic developers should collect, develop, and provide guidance for businesses on how they can ensure health and safety in their operations. This will also increase consumer confidence in local businesses and help keep customers coming.
  2. Convene Business & Political Leadership – Times of crisis call for collaboration. The public and private sectors in every community must be in lock step – with key leaders at the table sharing ideas, pooling resources, and coordinating efforts.
  3. Speak with One Voice – Clear, consistent communication is critical during a disaster. Local governments and the business community should share the same messages and resources across media platforms to reassure communities and ensure people and businesses can easily find what they need.
  4. Listen to Those in Need – Go to those businesses and people most impacted by this crisis and ask them how you can help. When people and businesses are struggling to stay afloat, they do not necessarily have time to come to you, but they also can provide the greatest insights about what will help them weather the storm. Do not assume that you know – ask them.
  5. Be Inclusive – Those who are already struggling will be the hardest hit during these times. With all efforts, be intentional about engaging disadvantaged populations in your community and hearing all voices and perspectives.
  6. Activate the Philanthropic & Corporate Community – Those who are able to give must step up to help protect our communities. In Seattle, we are seeing this from Microsoft, Amazon, and other employers who are donating millions of dollars to keep local businesses afloat and assist with healthcare needs. The cost of protecting our communities will be high, and the public sector cannot bear it alone.
  7. Identify Relief Mechanisms – Every community must look for ways they can reduce costs and support businesses as they struggle through lost revenues in these times. Relief mechanisms might include waiving of local fees and taxes for affected businesses. They could include developing bridge loans, revolving loans, and grants through a relief fund. Every community has different public, private, and non-profit tools, and this is the time to use every one that is available to keep business afloat.
  8. Support People – As small businesses lose revenue, they may be forced to lay off employees. As schools close, parents may need to stay home and, like those who are self-quarantining, may not have paid time off available. We must explore ways to provide and extend paid time off, stagger shifts to ensure some income to employees versus none, and other strategies that sustain employment and income for our residents.
  9. Get Creative – This is perhaps the most important advice. We are in new territory here. While there are lessons to be drawn from past disasters, supporting our local economies through a pandemic will require creative strategies. We must utilize technology and consider entirely new models for addressing the needs of businesses and people. For example, when Uber & Lyft left Austin, rather than wait for somebody else to solve the problem, the City helped create Ride Austin, a non-profit ridesharing service for the community. With social distancing, restaurants still need to sell meals, and people still need food – especially those with limited means or access. Cities could create a non-profit food delivery service or partner with an existing service such as Postmates or Doordash to provide meal delivery to residents utilizing all necessary health precautions. This would help keep restaurants afloat, create temporary delivery jobs for people, and provide a needed service for residents.

As we socially distance, we must also come together to protect our neighboring businesses and people. None of this will be easy or free, but putting the time and resources into strategically preparing for and responding to the effects of coronavirus will enhance our resilience and speed the road to recovery.


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