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)|
|Significant Disruption / Quick Recovery||22|
|Significant Disruption / Difficult Recovery||69|
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.