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HomeMy WebLinkAboutMemo - Mail Packet - 12/14/2021 - Memorandum From Rachel Rogers Re: Small Business Survey: Follow -Up With Grant Recipients Economic Health Office 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: December 6, 2021 TO: Mayor and City Council THRU: Kelly DiMartino, Interim City Manager Kyle Stannert, Deputy City Manager Jacqueline Kozak-Thiel, Chief Sustainability Officer Josh Birks, Economic Health and Redevelopment Director FROM: Rachel Rogers, Sr. Specialist, Economic Sustainability RE: SMALL BUSINESS SURVEY: FOLLOW-UP WITH GRANT RECIPIENTS PURPOSE: The purpose of this memo is to provide City Council an update on the state of small businesses 18- months into the COVID pandemic based on recent survey results. The Economic Health Office (EHO) sent a follow-up survey to the 297 businesses that received grant funding through our office during the pandemic to see how these businesses are doing today. 81 businesses responded for a response rate of 27%. BACKGROUND: The Economic Health Office administered two small business grant programs in the past 18-months to help offset the significant, temporary loss of revenue during this pandemic and to assist businesses in sustaining through the impacts of public health orders: (1) the Small Business Assistance Program (SBAP), funded by Coronavirus Aid, Relief, and Economic Security (CARES) Act dollars, and (2) the Larimer County Small Business Relief Program, funded by the State through the County. 297 distinct businesses received one or both of the grants. # Businesses Total Grant $ Average $/ Business SBAP 205 $1,899,177 $9,264 SBR 164 $842,238 $5,136 Total (distinct businesses) 297 $2,741,415 $9,230 2 KEY FINDINGS: Survey results showed that: Small businesses are still not back to pre-pandemic revenue generation. This is even more pronounced for the Restaurant/Dining industry and the Personal Services industry. Businesses are realizing increased operating costs coupled with challenges getting supplies. Many businesses are still operating at reduced capacity (hours and staffing). Of great concern is the potential that the city may lose some great businesses due to the continuing challenges from COVID. We know of fewer than five grant-funded small businesses that have closed in the last year, although 23% of survey respondents anticipate that closure may be an unfortunate option. Businesses responded that clearer and more timely information on COVID regulations, local and state, could have been better. Small businesses stated that continued sales tax and property tax forgiveness and/or reductions would have been helpful, given that the pandemic has lasted for many months. Full summary is in the attachment. NEXT STEPS: The Economic Health staff will continue to work with our city and regional partners to address some of the small business concerns, including: Potential continuation of the outdoor dining program. Workforce development and employment opportunities. has and will continue to be a priority during the Shop Small Season. The City received an award for this program in 2021 from the International Economic Development Council. Additionally, supporting small businesse and part of the recovery plan. Additional resources and programs are being implemented with ARPA funding. Attachment 1: Current Status Survey Results Summary SMALL BUSINESS ASSISTANCE PROGRAM CURRENT STATUS SURVEY RESULTS November 30, 2021 CONTACT Josh Birks, Economic Health & Redevelopment Director, jbirks@fcgov.com Rachel Rogers, Senior Specialist, Economic Sustainability, rrogers@fcgov.com fcgov.com/business Page | 1 E SUMMARY The City of Fort Collins Small Business Assistance Program (SBAP), funded by Coronavirus Aid, Relief, and Economic Security (CARES) Act dollars and administered by the Economic Health Office, provided monetary relief to small businesses impacted by the COVID-19 pandemic. The program provided funding to individual businesses to help offset the significant, temporary loss of revenue during this pandemic and to assist businesses in sustaining through impacts to their business from public health orders. The City also participated in the Larimer County Small Business Relief Program, which was very similar to the SBAP program, but where the eligibility criteria were set by the State. Eligible industries included restaurants, bars, wineries, breweries, distilleries. Caterers, movie theaters and fitness/recreational sports centers. The total number of distinct businesses that received one or both of the grants is 297. Business SBAP 205 $1,899,177 $9,264 SBR 164 $842,238 $5,136 businesses) 297 $2,741,415 $9,230 fcgov.com/business Page | 2 FALL URVEY OF GRANT RECIPIENTS In October 2021, the Economic Health Office sent out a follow-up survey to the businesses that received SBAP and/or SBR funding to try to get a sense of the current conditions and concerns of those businesses. INDUSTRY CATEGORY We received a total of 81 responses to the survey (27% response rate). BUSINESS REVENUE LOSS Businesses were asked “How is your current business revenue compared to pre- pandemic revenue (approximately)?” – 76% of businesses stated revenues are still down compared to pre-pandemic levels. fcgov.com/business Page | 3 Restaurant/Food Truck/Bar Arts, Entertainment, and Recreation CURRENT IMPACTS TO BUSINESSES COMPARED TO PRE-OPERATIONS fcgov.com/business Page | 4 CURRENT TATUS OFB A significant percentage of businesses are still not operating at pre-COVID hours or staffing. One business closed for reasons not related to COVID. ANTICIPATED HANGES TOB Businesses are still very concerned about the ability to continue after COVID. EMPLOYEE OUNT OMPARED TO RE-COVID Ove 50% of businesses are not at pre- pandemic staffing levels. fcgov.com/business Page | 5 CHALLENGES RECRUITING OR RETAINING EMPLOYEES Challenges with staffing continue. In response to the challenges in Reasons are a complex, overlapping web recruiting and retaining employees, of factors including concerns of health 47% of survey respondents have taken safety at work, ongoing childcare concerns action to address the issue. and a readjustment their preferences. Shortage of employees’ impact on business (for respondents for whom it is an issue). fcgov.com/business Page | 6 WHAT WOULD HAVE BEEN HELPFUL OVER THE LAST ONTHS? Below are the most common responses from businesses. Clearer and more timely information on local vs. county vs. state regulations. More direction on how to implement new mandates and more lead time to do so. Continued sales tax and property tax forgiveness and/or reductions. Expanded use of outdoor space for a variety of entertainment. Funding for additional outdoor dining equipment, like heaters. More money. Work with landlords regarding rent for when businesses were closed. “The biggest help was the grant I received from the city to keep my business afloat financially.” WHAT RESOURCES OR TOOLS DO YOU NEED TODAY? Below are the most common responses from businesses. Additional funds to help until costs of supplies and workforce return to normal. Assistance negotiating a lower rent to allow us to stay in current facility. At home COVID-19 tests for the artists currently performing and rehearsing. Community job board would be helpful to find people in the area looking to fill jobs. Continued support of the temporary patio expansions throughout the next year. Funds to develop outdoor area Employees and training. Marketing and education of the public to shop early and to shop local. No more mandates/fewer restrictions. “We made a big pivot and can’t really return to pre-pandemic ways so just continued support for these new ways is greatly appreciated.” WHAT WOULD MAKE FORT COLLINS MORE RESILIENT/STRONGER? Below are the most common responses from businesses. A sales tax holiday in times of crises. An investment in non-profit arts organizations. Encourage development and businesses outside of downtown. Greater community and connection across intersectionality of minority businesses, especially single-employee businesses. Have plans and preparations in place in the event that what happened to our communities last year happens again/rainy day fund. More support in dealing with customers in challenging times. More B2B collaborations. More effective social safety net. RESULTADOS DE LA ENCUESTA SOBRE EL ESTADO ACTUAL DEL PROGRAMA DE ASISTENCIA A PEQUEÑOS NEGOCIOS 30 de noviembre de 2021 CONTACTO Josh Birks, Director de Bienestar Económico y Renovación, jbirks@fcgov.com Rachel Rogers, Especialista Senior, Economía Sostenible, rrogers@fcgov.com fcgov.com/business Página | 1 INFORME EJUCUTIVO El programa de asistencia a pequeños negocios de la ciudad de Fort Collins (Small Business Assistance Program o SBAP por sus siglas en inglés), financiado por el programa de ayuda, asistencia y seguridad económica en respuesta al coronavirus (Coronavirus Aid, Relief, and Economic Security o CARES por sus siglas en inglés) y administrado por la Oficina de Bienestar Económico proporcionó asistencia económica a pequeños negocios que se vieron afectados por la pandemia por COVID-19. El programa proporcionó financiación a diferentes negocios para compensar la pérdida temporal de ganancias durante la pandemia y para ayudar a estos negocios a mantenerse a flote cuando se vieron afectados por diferentes órdenes de salud pública. La ciudad también participó en el programa de asistencia a pequeños negocios del condado de Larimer (Larimer County Small Business Relief Program o SBR por sus siglas en inglés), un programa muy similar al programa SBAP, pero en el cual la elegibilidad para el mismo la establecía el estado. Industrias que se beneficiaron de dicho programa incluían restaurantes, bares, bodegas, cervecerías, servicios de catering, cines y centros recreativos/deportes. El número total de negocios que recibieron una o ambas subvenciones es de 297. Business SBAP 205 $1,899,177 $9,264 SBR 164 $842,238 $5,136 businesses) 297 $2,741,415 $9,230 fcgov.com/business Página | 2 OTOÑO 2021 – E En octubre de 2021 la Oficina de Bienestar Económico envió una encuesta de seguimiento a los negocios que habían recibido financiación del programa SBAP y/o SBR para intentar comprender la situación en que se encontraban actualmente. T Recibimos un total de 81 respuestas a la encuesta (índice de participación del 27%). PÉRDIDA Una de las preguntas que se les hizo a estas negocios fue “¿Cómo son sus ingresos en comparación con antes de la pandemia (aproximadamente)?” – el 76% de los negocios contestaron que sus ingresos todavía son más bajos que antes de la pandemia. fcgov.com/business Página | 3 Restaurantes/Camiones de comida/Bares Artes, Entretenimiento y Recreación COMPARATIVA fcgov.com/business Página | 4 E Un porcentaje significativo de los negocios todavía no está operando con el horario o el personal que tenían antes de la pandemia. Un negocio cerró por motivos no relacionados con el COVID. CA A algunos negocios todavía les preocupa el no poder continuar su actividad después de la pandemia. C - CA Más del 50% de los negocios todavía no tiene el mismo número de empleados que antes de la pandemia. fcgov.com/business Página | 5 PROBLEMAS Las razones detrás de estos problemas son complicadas. Una mezcla de factores incluyen riesgos para la salud en el puesto de trabajo, problemas con el cuidado de niños y un reajuste de las preferencias. En respuesta, el 47% de los encuestados han tomado medidas para atajar estos problemas. Impactos que tiene la escasez de empleados sobre los negocios (para aquellos encuestados que expresaron que es un problema). fcgov.com/business Página | 6 ¿Q ? A continuación están las respuestas más comunes. Información más clara y a tiempo sobre la diferencia entre regulaciones locales, del condado, y estatales. Más ayuda sobre cómo implementar los nuevos mandatos y más tiempo para hacerlo. Continuidad en las reducciones o exenciones en pagos de impuestos de venta y propiedad. Uso extendido de espacios de exterior para diferentes entretenimientos. Financiación para materiales de exterior como calefactores. Más dinero. Trabajar con los arrendadores acerca de la renta cuando los negocios estaban cerrados. “La mayor ayuda que recibí fue la subvención que me dio la ciudad para mantener mi negocio a flote”. ¿Q ? A continuación están las respuestas más comunes. Financiación adicional para ayudar a cubrir los costos extra de suministros y mano de obra hasta que regresen a costos normales. Asistencia con la negociación de rentas reducidas para poder continuar el negocio en el mismo local. Pruebas de COVID-19 en casa para los artistas que están actualmente tocando y ensayando en el local. Tablón de anuncios de trabajo en el área. Apoyo continuado para las extensiones temporales de patio durante todo el próximo año. Financiación para crear espacios de exterior. Empleados y entrenamiento. Marketing y educación para que el público compre pronto y local. No más mandatos/menos restricciones. “Hemos dado un giro radical y no podemos volver a la manera que lo hacíamos antes de la pandemia así que agradeceríamos el apoyo para poder continuar de esta forma.” ¿Q ? A continuación están las respuestas más comunes. No pagar impuestos de venta durante tiempos de crisis. Invertir en organizaciones artísticas no lucrativas. Incentivar el desarrollo de negocios fuera del centro de la ciudad. fcgov.com/business Página | 7 Mejores conexiones y sentimiento de comunidad en interseccionalidad de negocios minoritarios, especialmente negocios de un solo empleados. Tener planes y estar preparados en caso de que lo que pasó en año pasado vuelva a ocurrir/tener un fondo para “días lluviosos”. Más apoyo para lidiar con clientes en tiempos difíciles. Más colaboraciones B2B. Red de beneficios sociales más efectiva.