City Roadmap:
Small Business Recovery
Update
March 28, 2022
Item (d)4
Community & Economic Development Committee
Nathan Donato-Weinstein
Blage Zelalich
Office of Economic Development and Cultural Affairs
0 2
4 6
8 10
12 14
16 JAN
'20
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'21
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'22
2.7% 14.3%
Feb. 2020
April 2020
6.6%
4.4%
3.8% for all workers (down from 5.8%)
for Black workers (from 9.2%)
for Hispanic or Latino
workers (down from 7.2%)
The federal
unemployment rate in
February 2022 was…
San Jose’s Unemployment Rate Continues to Improve
Data: EDD LMI March 2022
3.5%
January 2022
Jobs Recovered by Industry
Information Manufacturing
Transportation &
Warehousing Construction
100%+ 100%+
100% 89.1%
Some
Sectors
Recovered
All or Nearly
All Jobs
Lost…
Data is from EDD LMI January 2022 and is for San Jose MSA; Jobs lost as of April 2020 compared to January 2022 …Laggards are
finally catching up
Retail Trade
72.1%
Government
Education &
Health
Leisure & Hospitality
0%-
86.2%
69.5%
(57%)
(43%)
(47%)
(Unchanged)
Consumer Spending and Small Business Revenue
Pre-pandemic baseline San Jose-area consumer
spending has recovered,
but entertainment and
restaurants still weak.
Data: TrackTheRecovery.org
Percent Change in All Consumer Spending
As of March 6 2022, total spending in San Jose by all consumers increased by 3% compared to January 2020 Percent Change in Time Spent Outside of Home, San Jose MSA As of March 18 2022, time spent outside the home was down 11.3% compared to January 2020 San Jose residents are slowly increasing their
time spent outside the
home, but compared to
Jan. 2020 the MSA is
only ahead of San
Francisco and
Washington, D.C.
Back-to-Work Barometer (office)
San Jose
What We’re Hearing: Current Business Issues and Concerns Real Estate Access to Capital Labor Force
Back rent may be owed –
moratorium’s rules are
complicated
Rents rising – retail up 5%,
industrial up 13%
Landlord/tenant issues are top of
mind
More SJ businesses are applying for –
and receiving – SBA small business
loans (non-pandemic).
Major federal pandemic relief
loans/grants have ended
Revenue below pre-2020 levels for
63% of businesses surveyed
Pandemic aid especially failed to
reach business owners of color
The ability to find workers
continues to be a challenge for
businesses, especially lowerwage/skilled sectors
Top concern of 60% of
businesses surveyed
What We’re Hearing: Current Business Issues and Concerns Inflation Supply Chain Cost of Doing Business
Inflation is hitting small businesses
hard, with 67% of businesses hiking
prices to cope.
Also affecting hiring of staff.
February 2022 consumer prices
(Western U.S.) up 8.1% across the
board; energy up 26.7%.
Supply shortages are affecting
small businesses
Top concern of 60% of
businesses
Can result in lost customers
and opportunities
Perception of crime, blight, and
dumping on the rise
Permit timelines and cost
Lawsuits and regulation
Source:
MetLife/US
Chamber
survey,
March 2022
Evolution of Business Support
Basic information
and compliance
Emergency
grants and
policies
Topical
training and
webinars
Relevant
technical
assistance
Stronger
business
districts
Targeted
support
2020 2021 2022
Immediate response Focus on recovery Long-term viability and resilience in a
‘new normal’
BoostBiz SJ
Increased Staff
Capacity
Financial
Assistance
Technical
Assistance
Thriving
Neighborhood
Business Districts
Assisting the
Most Vulnerable
Supporting the
Recovery Task
Force
Financial Assistance
• City small business grants
• Storefronts Activation grants
• Accessibility Compliance grants
• Cultural Funding
Technical Assistance
• Webinars
• Businessownerspace refresh
• Virtual small business center
• Real estate help
• EDA-funded recovery support
• Arts and culture technical assistance
Thriving Neighborhood Business Districts
• Business District
Manager initiative
• PBID formation
• BizWalks
• Outdoor special events
Assisting the Most Vulnerable
13 • Focus on language access
• Working with CBOs
• Targeted outreach for
financial assistance programs
• Increased staff capacity
City Roadmap:
Small Business Recovery
Update
March 28, 2022
Item (d)4
Community & Economic Development Committee
Nathan Donato-Weinstein
Blage Zelalich
Office of Economic Development and Cultural Affairs