Phase 2 Business Resiliency Survey

Key Findings

Nearly half of respondents say their business has reduced its hours of operation since the COVID-19 pandemic began and
one-third have closed temporarily. Most of those who reduced their hours say their business cut more than a quarter of their hours and half of those who closed temporarily say they did so for one to three months. Businesses that closed temporarily most often did so due to health and safety concerns, being required to close by government order, or due to a loss of revenue, while others report closing because they were homeschooling children or were caring for a family member, because of suspected or confirmed COVID-19 cases, or because employees were unable or unwilling to work.

The average respondent's business has just twelve employees which is largely unchanged since June but is down slightly
compared to mid-February 2020, when the average business had a reported average of just under fifeen employees. Nearly
half say they currently have the same number of employees as they did in February 2020 while three in eight report having
fewer employees.

Seventy percent of respondents say their business has seen its monthly revenue decrease as a result of the COVID-19
pandemic. While this proportion remains high, it has fallen since June 2020 (83%). Respondents cite the same top four factors as they did in June 2020 - a decline in sales, reduced hours of operation, being required to close, and supply chain interruptions - as the primary factors that have caused their business to experience financial losses, with a decline in sales clearly the most important factor. Three in eight say their accounts receivable have been slower as a result of the pandemic, down from nearly half in June, while a quarter report deferring or modifying their payments to vendors due to COVID-19, also lower than in June.

Three-quarters of respondents say their business applied for financial relief in 2020 and just over half plan to apply for relief in 2021. The Payroll Protection Program was by far the most commonly utilized federal relief program; nine in ten respondents say their business received it, while just over half received an Economic Injury Disaster Advance or Loan. Among state, municipal, and private relief programs, three-quarters received relief through unemployment for their employees and through the Main Street Relief Fund while nearly two-thirds received relief through unemployment for themselves. Use of unemployment for oneself or one's employees has increased dramatically since June 2020, when only about a quarter reported using these relief options. Overall, respondents are far more likely than in June 2020 to report that their business received relief from federal, state, municipal, and private sources.

Only one in six respondents say their business had a resiliency or continuity plan prior to the COVID-19 pandemic but another fifth of respondents say their business has developed one since. Larger businesses are more likely than others to have had a plan before the onset of the pandemic. Most businesses who do have a resiliency or continuity plan report lacking at least one important component of their plan.

Nearly two-thirds of respondents believe that resiliency planning will be very important or somewhat important to their
business in the future, including more than three-quarters of those with a plan but also a majority of those who say their
business currently lacks such a plan.

As a result of COVID-19, just over half of respondents say their business has purchased PPE for their employees while four in
ten have maintained or brought employees back under the Payroll Protection Program and just over a third have changed the layout of their business to protect employees. Businesses are slightly more likely than in June to report having purchased PPE and changed the layout of their business. One in five businesses have some employees working remotely, unchanged since June 2020, with larger businesses more likely to do so.

Respondents also reported innovations and modifications that their business has implemented due to COVID-19 with more
than a quarter now offering new products or services, collaborating with other businesses, and using e-commerce.

When asked about one successful thing their business has done in response to COVID-19, respondents most frequently mention that they changed how they deliver or produce their products or that they protected the health of employees or customers, while others mention how they implemented remote or virtual work or practiced better external communication or advertising.

Nineteen percent of respondents say that their business is better off financially than they were in June 2020, 35% say they are
in about the same position financially, and 42% are worse off. Businesses in the health care and social assistance and the
manufacturing industries are more likely to say they are better off.

As in June, maintaining sales and revenue and maintaining customers are by far the biggest concerns of respondents as their
businesses recover from COVID-19, followed by concerns about the availability of the COVID-19 vaccine for employees and
public acceptance of the vaccine. Majorities also are concerned about supply chain disruptions, access to capital, cybersecurity, timely payment of bills, and energy costs. Concern about timely payment of bills and access to PPE have declined since June but concern over access to COVID-19 testing and cybersecurity have increased.

Respondents most frequently cite renewed access to customers, health and safety guidance, financial assistance, and access to the COVID-19 vaccine for their employees as most important to their business in the future. Mirroring results in June 2020,
most businesses plan to continue the changes and innovations they made in response to COVID-19 even after the pandemic
has passed; more than three-quarters of those who are utilizing e-commerce, collaborating with other businesses, offering
takeout, offering new products or services, and having employees work from home plan to continue doing so.

Respondents are more confident than they were in June in the continued survival of their business in the short and long-term
as more than four in five respondents are confident their business will be operating in twelve months. Very small businesses,
those in Northern NH, and those in the arts, entertainment, and recreation industry are particularly more confident than they
were in June. Respondents are also more bullish than in June in their expectations for the recovery of the state's economy to
pre-pandemic levels. Few still believe that this will happen within three months, but more than seven in ten are confident it will happen within twelve months.

Overall, 1,611 businesses from 174 towns and cities responded to the survey. These businesses represented a wide variety of industries and sizes.