New Cleveland Fed report highlights COVID-19 impacts on most vulnerable populations in Fourth District communities
A new Cleveland Fed report highlights the immediate impacts of COVID-19, including income loss, housing instability, and business closures in communities across the Fourth District. Using data from a Federal Reserve Survey, the report summarizes Fourth District survey responses of nonprofit organizations, financial institutions, government agencies, and other community organizations.
“The results from this survey indicate recovery will be difficult and long for the low- and moderate - income communities and individuals they serve,” says Lisa Nelson, community development research manager. “Though policy and programmatic responses to COVID-19 ramped up quickly and continue to evolve and expand as the crisis continues, respondents are concerned about the longer term impacts of the crisis on communities and vulnerable populations, particularly as moratoriums are lifted and need for funding and assistance remain.”
Key findings include:
- Nearly 78 percent of respondents indicated COVID-19 was a significant disruption to the economic conditions of the communities they serve and that recovery is expected to be difficult.
- Forty-five percent of respondents indicated it will take more than 12 months for their communities to return to the conditions prior to the COVID-19 disruption.
- Sixty-four percent of respondents indicated COVID-19 is significantly disrupting the entity they represent, with 41 percent expecting the recovery to be quick and 23 percent expecting the recovery to be difficult.
- Fifty-three percent of respondents indicated they could operate for six months or less before experiencing financial distress, with 20 percent of the share indicating they could operate for less than three months.
- Seventy-six percent of respondents indicated demand for their services has increased or is anticipated to increase, and more than half of respondents noted a corresponding decrease or anticipated decrease in their ability to provide services.
Federal Reserve Bank of Cleveland
The Federal Reserve Bank of Cleveland is one of 12 regional Reserve Banks that along with the Board of Governors in Washington DC comprise the Federal Reserve System. Part of the US central bank, the Cleveland Fed participates in the formulation of our nation’s monetary policy, supervises banking organizations, provides payment and other services to financial institutions and to the US Treasury, and performs many activities that support Federal Reserve operations System-wide. In addition, the Bank supports the well-being of communities across the Fourth Federal Reserve District through a wide array of research, outreach, and educational activities.
The Cleveland Fed, with branches in Cincinnati and Pittsburgh, serves an area that comprises Ohio, western Pennsylvania, eastern Kentucky, and the northern panhandle of West Virginia. For more information, go to www.clevelandfed.org or follow us on Facebook, Twitter or Linkedin.