5 ways cities, small businesses, and residents can help keep the local economy afloat during COVID-19

Assaf Frances

Assaf Frances

Director of Urban Policy

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Local economies all across the country are getting hit hard by the effects of COVID-19. The city and state level measures that have been implemented in an attempt to contain the virus are forcing many businesses to reduce their operations to a minimum, close their doors for the time being or even permanently. Research by JP Morgan indicates that nearly 50% of small businesses have a cash buffer of 15 days or less, and a year-over-year restaurant visits tracker by OpenTable shows an alarming decrease compared to 2019. With no end-date in sight, this situation bears devastating news to many businesses that might not be around next time we go out shopping or for a nice dinner. Remember that?!

So what can be done?

The recent Federal Stimulus Package and SBA programs are a good start, but money from these initiatives will take precious time to reach those who need it the most. Therefore, in order to keep businesses afloat, local government authorities, alongside residents and businesses themselves, are stepping up to fill the “time is money and money is time gap” in both traditional and innovative ways.

Here’s a summary of examples for what cities and their partners across the country can do to help out:

1. Provide Business Stabilization Packages

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Local authorities are dipping into their “rainy day” funds and creating benefit packages for businesses hurt by COVID-19. The key here is that these measures are usually effective immediately providing businesses the oxygen they need until federal funding is made available. These packages may include several of the following:

Be sure to also share with businesses in your area information about opportunities offered by other organizations. Online tech giants like Facebook and Google are proposing free ad campaigns and cash grants to small and medium businesses. The Opportunity Finance Network is also offering financing opportunities for small businesses by regions so be sure to check out what’s available in your area (a tip we got from our friends at ELGL).

Forbes magazine has created a continually updated list of these more formal packages for businesses to be aware of and other cities to draw inspiration from.

Notably, as these programs grow in number, making their availability and application process known and accessible to local businesses is key but could be challenging. Cities are working hard at promoting these packages through online local community and business groups (see great examples from Estacada, ORPerry, GA, and Beaverton, OR) and offering guidance and assistance in filling out the forms. This is particularly important for businesses run by the less tech-savvy or bureaucracy-proficient so that they are able to take advantage of these benefits as well.

2. Ease Curbside Regulation

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As most restaurants are restricted to pickup and delivery only, making these services easy and quick can help them increase sales volume. A simple measure local authorities can take in order to promote food pickup from local restaurants is waving on-street parking fees like the Town of Chapel Hill, NC has done. In some places, such as Albany, NY and Detroit, MI, the city created a Restaurant Carryout Zone Program that provides restaurants with a free on-street carryout area for their customers. The restaurants are expected to deliver the food to the car in order to observe social distancing with and between their clients.

3. Encourage and Incentivize Residents to Shop Local

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In order to provide businesses with some immediate cash flow, many cities and businesses alike are encouraging residents to purchase prepaid gift cards for local shops, restaurants and cultural venues (see examples from Erie, PAPhiladelphia, PAOttawa, CanadaLos Altos, CA). In other places like in the cities of Burleson, TX and Edmond, OK local organizations are offering some matching funds to residents who purchase a gift card to incentivize them even further. In West Fargo, ND the city is creating a win-win-win situation and is raffling gift cards for local businesses out to specific residents who responded to the Census.

4. Use Your City's Social Media for Promotion

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In cities of all sizes, we’re seeing local authorities using their important online presence at this time to promote local businesses. Simply advertising a detailed list or map of restaurants and businesses as the City of Chandler, AZ and the City of Springboro, OH did, can go a long way, as can shining a spotlight on a different venue each time as did Doral, FL. In other places, as in this example from the Quad Cities Region in Iowa, the organization involved increased awareness of the issue by raffling online a free takeout meal from a different restaurant each day. By encouraging residents to engage with the posts directly, they are able to improve its visibility and organic reach, exposing many more to the initiative and the restaurants that it promotes.

5. Help Your Businesses Get Creative (or don’t get in the way too much)

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Despite the state of the outbreak, the creativity and camaraderie that local businesses are showing at this time are certainly uplifting. Local gyms and private trainers are already offering diverse online classes and even allowing members to rent out their equipment for the time being. Restaurants and bars are providing online cooking classes, mixology workshops and alcohol deliveries, while bookshops are hosting online reading sessions for children and adults. Some of these businesses charge a fee for these services, while others enact a pay-as-you-wish policy; nonetheless, keeping their name and brand in the consciousness of their clients is vital.

Some other places are repurposing their facilities to fit the needs of the current situation and make some income along the way. Distilleries are helping out with crisis mitigation efforts and producing hand sanitizers mainly for the use of first-responders and vulnerable populations, as these examples from Spokane, WA and Lewisville, TX show. Another great example is restaurants that have converted their dining space into food and produce markets in Long Beach CA, in order to reduce the pressure on supermarkets and grocery stores. While these are all business initiatives, the city’s role in such cases is to consider easing (or ignoring) regulations when needed in order to encourage these and other innovative and adaptive solutions during these tough times.

The examples we share in this post go to show that in order for the places that make our cities so great to be able to bounce back from this pandemic, we need government, businesses, and residents to continually collaborate and provide each other with mutual support. We will continue to follow and share with you the great work of local authorities across the country as they adapt and respond to this new normal in resilient ways.

For tips on how to make sure your online crisis communications gain better traction/visibility on social media, check out our data-driven guidelines here

If you would like to learn more about how Zencity’s 130+ city/county network leverages our technology to tackle the COVID-19 outbreak and improve crisis management, you can read more here.