The issues of lockdowns, business closures, and unemployment are felt in every Coachella Valley city and community. In fact, the valley’s most affluent cities have seen some of the most significant impacts to their small business communities. A recent study by Opportunity Insights highlighted this trend in a study of small business revenue from March 25 to May 26 as compared to January 2020. In more affluent areas, consumers are more prone to staying at home, reducing their typical small business spending at favorite local spots. For instance, small business revenue has fallen by 80% in Palm Springs’ 92262 zip code, and 55% in 92264. Small business revenue in Indian Wells has fallen by 73%, and in Palm Desert it has fallen by 48%. In sharp contrast, zip codes in Coachella and Bermuda Dunes have seen a 2% rise in small business revenue, as there are a concentration of home improvement and essential businesses in these areas. Residents of Coachella Valley cities have just begun to see the dramatic effects of diminished tourism and retail revenues. City budgets have already been cut: vacant positions are being left unfilled; departments have been reduced in size. Even the appearance of some municipally-owned landscapes is beginning to suffer as watering and maintenance schedules are reduced to save costs. Police and fire positions receive a great deal of publicity when they are considered for cuts. But there are dozens of less-visible positions which equally contribute to the quality of life in our cities. Code enforcement, planning, economic development, and engineering departments all provide critically important services to residents and businesses. Continued reductions in any of these departments will cause a degradation of the beauty that draws tourists here, a reduction in public safety; and protracted processes
for those who wish to start or expand a business. It is a downward spiral that is difficult to escape. This inevitable downward spiral of business closures and unemployment reaches beyond commerce and into daily life. According to a 2013 report by the Urban Institute, those facing long-term unemployment of 6 months or more face wide-ranging negative effects related to physical and mental health: breakdown of existing family structures; reduced future earning potential; declining performance of children in school; increased criminal activity; and more. For small businesses and the unemployed, government grants and stimulus packages offer a temporary stay. But they can never replace a once-thriving business or meaningful work, nor can they repair damage to families and health. When new city budgets were approved in June, leaders largely hoped that by fall, shutdowns would be coming to an end and that “normal” would return. Instead, as we creep into fall, the region is facing the very real possibility of watching nearly 17,000 people lose their jobs and livelihoods permanently. The ability of Coachella Valley businesses to reopen at full or very near capacity in the short term will be the difference between a recovery that takes mere months and one that takes many years. A robust small business community and the availability of productive, rewarding employment are cornerstones of a healthy community. The Coachella Valley has been closed for 6 months and the impacts have been severe. Continued shutdowns will profoundly weaken not only the financial security of Coachella Valley residents, but their physical and emotional health as well.
13