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Houston Business Barometer Week 4: Half of Local Businesses Have Sought Federal Funding

Published Apr 29, 2020 by A.J. Mistretta

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Half of small businesses surveyed by the Greater Houston Partnership this week said they have applied for assistance through federal stimulus programs, and about 60% of those have received funding so far. About a quarter of respondents say they do not intend to apply for assistance. 

A total of 111 companies responded to the fourth Houston Business Barometer survey conducted by the Partnership between April 27-28. 

Since the survey began four weeks ago, the number of respondents who have instituted work-from-home practices in their company has grown to nearly 92% (up from 84%), while those who have shut down whole or partial operations increased to nearly 30% (up from 22%). 

Approximately 39% of companies said they have enacted a hiring freeze, roughly the same as four weeks ago. 

The near-term outlook among business leaders is improving a bit. Those describing their outlook as “better than a week ago” jumped to 22.7% this week, up from just 5.7% when the survey began. 

The survey showed that revenues have increased for some since week 1 and those experiencing decreasing revenues are falling. 

Asked how the fallout from the pandemic has impacted their operations, 44% say the impact has been severe (down from 53% four weeks ago), and another 36% say their operations have been moderately impacted (up from nearly 29% four weeks ago). 

Respondent firms’ top three concerns continue to be revenue/sales (84%), employee well-being (63%) and profits (63%). 

The following breaks down how long firms now believe they could remain afloat based on projected cash flow and without federal assistance:

Time Period                       Respondents
1-2 weeks                          0%
3-4 weeks                          2.8%
5-6 weeks                          5.5%
7-8 weeks                          9.2%
3-6 months                        21.1%
Longer than 6 months      51.4%
Don’t know                        10.1%

See results from Week 3

Learn about the resources available via the Greater Houston Business Recovery Center. Visit the Partnership's COVID-19 Resource page for updates, guidance for employers and more information. And sign up for daily email alerts from the Partnership as the situation develops. 

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Every Texas legislative session brings something new: bold policies, fresh faces on the chamber floor, or, in this case, a new focus on making the Texas economy bigger and better. This year, the Texas House and Senate have restructured their standing committees, creating stand-alone panels to emphasize economic development and other key drivers of the state’s economy. In the Texas Senate, returning Senator Phil King will chair the newly formed Committee on Economic Development. Previously, the committee was a policy-combination focusing on Natural Resources and Economic Development. King, who previously served as Vice-Chair for the Senate Committee on Business & Commerce, said he is excited to take on the leadership position in the upper chamber. “I am honored that Lt. Gov. Patrick has entrusted me to lead the Economic Development Committee in Texas, which has the eighth largest economy in the world,” Senator King said in a statement to the Partnership. “We will use this session to discuss policy solutions that can continue to drive our state's economic growth and prosperity over the next two years and beyond. I look forward to hearing from business leaders and local officials from across the state on how we can build upon the Texas Miracle in their communities.” The Texas House created the Committee on Trade, Workforce, and Economic Development. Under first-term Speaker Dustin Burrows, the House will have a committee focused on the workforce and expanding the talent pipeline for the first time. Committee assignments for the Texas House have yet to be released.  Burrows told the Partnership he is committed to seeing Texas build a bigger and better economic engine for future generations.  "The Texas House remains focused on delivering legislative solutions that will strengthen our state's mighty economy and provide more economic opportunities for hardworking Texans," said Speaker Dustin Burrows. "This session, the House's new Committee on Trade, Workforce, and Economic Development will take a comprehensive approach to ensuring businesses have the freedom and tools to thrive in our state, with a newly created subcommittee concentrating on policies to bolster the Texas workforce. The House will also prioritize support for small businesses through legislation that aims to unleash the power of Texas entrepreneurship in communities across the state by cutting taxes and reforming the regulatory process." It’s too soon to say which bills will go to these committees. For now, a review of the interim reports from the previous committees points to support of key policy priorities for the Partnership: Early Childhood Education: the House and Senate both recognized a statewide need for expanding programs that support families and young children in education/developmental programs The successful implementation of the Lone Star Workforce of the Future Fund [HB 1755 - 89(R)] is compelling lawmakers to invest further in innovation and growth for apprenticeship and training programs. Expanding the available workforce talent pool will remain a priority for the 89th Texas Legislature. Click below to read the full interim reports from the following committees: Senate Committee on Natural Resources and Economic Development House Committee on International Relations and Economic Development To learn more about the Partnership's Legislative Priorities, click here. For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.
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