The Impact of COVID-19 on Communities and the Entities Serving Them
In April, the Federal Reserve conducted a survey to better understand the impact of COVID-19 on under resourced and low-income communities. A new report, Perspectives from Main Street: The Impact of COVID-19 on Communities and the Entities Serving Them, presents the findings from the survey.
Of the 3,899 responses, 69 percent indicated COVID-19 was a significant disruption to the economic conditions of the communities they serve and that recovery is expected to be difficult.
At this point in time, what level of disruption is COVID-19 having on economic conditions in the communities you serve?
Percent of Total Responses (N=3,899)| Level of Disruption | Percent of Total Responses (N=3,899) |
|---|---|
| No Disruption | 0 |
| Minimal Disruption | 0 |
| Some Disruption | 7 |
| Significant Disruption / Quick Recovery | 22 |
| Significant Disruption / Difficult Recovery | 69 |
| Unknown | 2 |
Additional key findings include:
- Income loss, business impacts, health concerns, and basic consumer needs were the most frequently cited impacts of COVID-19.
- Over one-third of respondents (35%) indicated it will take more than 12 months for their communities to return to the conditions prior to the disruption from COVID-19.
- 72% of respondents indicated COVID-19 is having a significant disruption on the entity they represent, with 41% expecting to bounce back quickly after recovery begins.
- Nearly 2 out of 3 respondents (66%) indicated demand for their services has increased or is anticipated to increase, and more than half of the respondents (55%) noted a corresponding decrease or anticipated decrease in their ability to provide services.
- A quarter of respondents (25%) indicated their entity could operate for less than three months in the current environment before exhibiting financial distress.
As we work to collectively address the challenges resulting from COVID-19, it will be important to continue listening to the needs of low-income communities and the organizations that serve them.
For more findings from the survey, read Perspectives from Main Street: The Impact of COVID-19 on Communities and the Entities Serving Them.
Would you like to be notified as new publications and resources become available? Want to stay in the loop on upcoming conferences and events? Join our mailing list.