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Statement Regarding CARES Act and Small Business Survey Results

Published Mar 27, 2020 by A.J. Mistretta

Washington, D.C.

Statement Attributable to Bob Harvey, President and CEO, Greater Houston Partnership 

“The CARES Act is a major step forward for Houston businesses and their employees who have been impacted by the coronavirus. 

We’ve surveyed 850 of our small-to-medium sized member companies and we know they are hurting. Forty-one percent of those surveyed say they can only survive a shutdown or slowdown for one to four weeks, and thirty-four percent have already reduced employee headcount. The funds provided through the CARES Act are essential to ensure Houston businesses are able to meet payroll during this difficult time. 

We encourage Houston business owners to work with their lenders as quickly as possible to keep their employees on the payroll and their companies functioning.”
 
The Greater Houston Partnership surveyed 850 member companies Monday, March 23 – Thursday, March 28, 2020. N=327
 
A few highlights from this data:

  • Small businesses are feeling the impact of the COVID-19 slowdown.
    • 18% are unable to receive supplies or services 
    • 29% are unable to deliver goods or services 
    • 34% have reduced employee headcount
    • 17% are operating at zero capacity 
    • 59% are operating below half capacity
    • 91% have lost revenue 
    • 41% can survive the slowdown/shutdown for only 1 to 4 weeks
       
  • Companies are split about paying employees who temporarily can’t work.
    • 49% will not pay workers during the COVID-19 hiatus 
    • 32% will pay full wages 
    • 19% will pay reduced wages 
       
  • Economic uncertainty is high. 
    • 64% concerned about finances and liquidity 
    • 58% concerned about declining consumer confidence 
    • 53% concerned about a U.S. or global recession 
    • 55% “unsure” if they will have to make permanent layoffs in the next 6 months

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