Impact of Coronavirus Pandemic Economic Downturn on CEDS Planning Process

When Southern Tier West began the planning process for the creation of the 2020 CEDS, the USA was just heading into the coronavirus pandemic, with the associated economic downturn that was experienced by the entire nation. Like the nation, the region wishes to implement strategies that will result in economic recovery. These strategies, and the activities and initiatives that flow from these strategies, normally would be the province of this CEDS. However, several issues present themselves. First, data describing the impact of the downturn are not yet available, as even seasonally unadjusted data lag the actual downturn. Second, the downturn is ongoing, and the severity and impacts of it are not yet fully known. Third, the business and economic development community are not up to speed as to what the optimum responses might be to the downturn. Fourth, federal and state responses and programming are still in the process of being developed. Because of these issues, this CEDS primarily has been prepared using data available and economic development strategies available during the 2020 CEDS planning period.

Nonetheless, there are several regional response initiatives underway. Regional small business revolving loan funds operated by the Chautauqua County Industrial Development Agency and the Southern Tier Enterprise Development Organization have secured federal approval for revising their local fund operating rules so as to be more flexible regarding accessibility and usability of their loan funds by businesses that have been negatively impacted by the coronavirus downturn.

Additionally, both Southern Tier West and the Southern Tier Enterprise Development Organization have applied for additional federal EDA funds as part of the region’s economic response to the pandemic dislocation. Southern Tier West will use these funds for (a) the development of an economic recovery and resilience plan, tied to the CEDS, that will address the economic impacts of the coronavirus pandemic, (b) the provision of technical assistance, as necessary, to local governments, businesses, and other stakeholder organizations, and (c) the funding of appropriate technology and staff support for these pandemic-response activities. EDA has awarded these funds to Southern Tier West, and the initiative began in the summer of 2020.

The Southern Tier Enterprise Development Organization proposes to use the requested EDA funds for additional small business loan funds. EDA anticipated awarding these funds during the summer of 2020, and these loan funds would become available immediately thereafter.

Additional priority response projects will be listed in the CEDS as they are developed. Southern Tier West’s economic recovery and resilience plan also will result in additional response initiatives, which will be listed as high priority projects in updated versions of this CEDS, as well as in subsequent CEDS documents.