Businesses and Local Governments at Risk of Closures and Cuts in Services Without Additional Coronavirus Aid

December 4, 2020 - (2 min read)

91 percent of respondents say their business or government’s condition will worsen without new aid.

WASHINGTON – Millions of jobs, small businesses and essential government services are at risk if Congress fails to pass another COVID economic relief package. A new survey of public and private sector groups finds that direct aid to local governments and small businesses is critical.

The survey, by the COVID RELIEF NOW coalition, a partnership of nearly 300 major public and private sector groups, shows small businesses, cities and counties are experiencing devastating impacts of the coronavirus pandemic without additional federal relief.

By the numbers:

  • Both the public and private sectors have taken a hit from the coronavirus pandemic: 89 percent of respondents indicated that their business, organization or government is worse off now than in January 2020.
  • Without additional aid or intervention, 95 percent of business respondents believe their organization or industry will face significant challenges, or worse, will be forced to close its doors.
  • Seventy-two percent of local government respondents indicate that their financial health has been negatively impacted by COVID-19, and most will face challenges in providing essential services without additional aid.
  • The pandemic is an economic crisis, costing millions of public and private sector jobs. Fifty-nine percent of respondents indicate that their business, organization or government has cut the workforce with moderate or significant measures. Businesses and local governments can’t wait for aid.

COVID RELIEF NOW is calling on Congress to act now and come together to immediately pass a bipartisan economic relief package.

See the full survey results here. Watch the COVID RELIEF NOW coalition’s new ad calling on Congress to act here.

Steering committee members for the coalition include: American Hotel & Lodging Association (AHLA), International Franchise Association, National Association of Counties (NACo), National Conference for State Legislatures (NCSL), National Governors Association (NGA), National League of Cities (NLC), National Restaurant Association, National Retail Federation, U.S. Conference of Mayors (USCM), U.S. Travel Association, Society of Independent Show Organizers, International Council of Shopping Centers, Asian American Hotel Owners Association (AAHOA), American Gaming Association, American Apparel & Footwear Association, Small Business Entrepreneurship (SBE) Council, and the American Society of Association Executives (ASAE) and Go Live.


The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people across the country. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions. Stay connected with NLC on Facebook, Twitter, LinkedIn and Instagram.