LI Business Survey Shows Coronavirus Impact Worse Than Expected

LONG ISLAND, NY — A new survey shows nearly half of Long Island businesses laid off workers during the coronavirus pandemic, and of those that did, nearly all expected to let go at least 10 workers in the future.

That's according to a stunning, second survey created and hosted by Hofstra University aimed at gauging just how severe the pandemic has had on businesses. About 1,300 businesses responded to the second questionnaire, which also sought information about procuring federal aid such as the Payroll Protection Program.

Laura Curran and Steve Bellone, the Nassau and Suffolk county executives, respectively, revealed the results of the survey Friday.

Here's what they found:

Who Responded

• 55 percent were not designated an essential business
• 80 percent are small businesses with no more than 10 workers

Key Findings

• 46 percent laid off workers

• 27 percent are not laying off employees and 23 percent remain unsure
• Among those who laid off workers, 84 percent laid off 10 or fewer people, and 84 percent expect future layoffs of at least 10 people
• 37 percent are bringing back all workers after the stay-home order is lifted for their industry, and 36 percent cannot yet determine if they will
• 38 percent expect between a 21-50 percent drop in revenues and nearly 40 percent expect a more than 50 percent drop in revenues

• 70 percent of businesses say the impact of COVID-19 was worse than expected from two months ago

Keen Interest in Loans

• 52 percent secured a loan already and 12 percent more plan to apply
• Half of those loans are between $500 and $50,000
• 46 percent experienced difficulty applying for a loan.
• 28 percent have a loan pending with the U.S. Small Business Administration and most said their loan has been pending for more than a month
• 78 percent secured PPP loans and 62 percent SBA EIDL loans (some businesses applied for both).

Key Challenges

• Customers are too afraid of public health hazards to buy from businesses
• Customers do not have the financial security to buy from businesses

• The financial impact of a phased reopening for specific sectors.

How Government and Nonprofits Can Help

• 26 percent say micro-loans from sources other than the MTA
• 19 percent say providing clear guidelines on social distancing and use of personal protective equipment, such as masks and gloves.
• 17 percent say providing PPE for workers

Consultants from HR&A will use the survey in their study on how each industry on Long Island and their workforce are faring, including retail, hospitality, construction/development, healthcare, commercial real estate, manufacturers, higher education, nonprofits and others.