Daily Business Report-April 6, 2020
More than 86 percent of businesses in San Diego expect to see revenue losses.
San Diego small businesses, and those in food,
beverage, and tourism, hardest hit by coronavirus
San Diego County small businesses, and businesses in the food and beverage and tourism industries, are suffering the greatest impact of the COVID-19 crisis, with the highest losses, expected layoffs, and closures, according to an economic impact survey on the San Diego economy. More than 86 percent of businesses in San Diego, the survey said, expect to see revenue losses.
In 642 responses to a survey of regional businesses launched March 19 by the San Diego Regional Economic Development Corporation, the San Diego Regional Chamber of Commerce, and the San Diego and Imperial Small Business Development Center, it is clear that the forced closure of several non-essential businesses is affecting whole industries and hundreds of thousands of workers, according to the organizations.
“While the exact impact remains to be seen, we know that social distancing – while essential for public health – is disrupting economic activity across the San Diego region.”
Three trends stood out based on what employers reported during the first two weeks of surveying:
- Impacts are concentrated by industry. Of the 360 employers planning to reduce staff, 80 percent are in the food and beverage or tourism industries.
• Impacts are immediate. Nearly 94 percent of employers anticipating staffing reductions and two-thirds of those expecting revenue declines expect those hits within 30 days. - Impacts disproportionately affect small businesses. Employers with annual revenues below $1 million anticipate average losses in income of nearly 70 percent, compared with an average loss of 51 percent for businesses earning more than $1 million annually.
“While the impacts of COVID-19 are rippling through the entire region, the survey shows that small businesses — which are responsible for a majority of our economic growth — are disproportionately impacted,” said Mark Cafferty, president and CEO of the EDC.
A majority of employers — 61 percent — are in need of capital support. More than half of those with capital needs are the smallest of employers with fewer than five employees.
The survey revealed other vulnerabilities:
- There are 95,000+ workers over the age 65, which are considered to be high-risk to COVID-19. These workers are concentrated in some essential industries, such as government and food service.
Industries that are facing closures and interruptions represent 378,000+ jobs and a $33 billion contribution to economy. These are retail trade (excluding groceries and gas stations), wholesale trade, arts and entertainment, accommodation and food services.
Click here for the full report.
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250-bed federal field hospital planned
for Palomar Medical Center in Escondido
San Diego Union-Tribune
A 250-bed federal field hospital will be created inside Palomar Medical Center in North County as San Diego prepares for an expected surge of people with COVID-19 who will need to be hospitalized. The beds will go on the vacant 10th and 11th floors — the top two floors — of the Escondido hospital, county officials announced Sunday, calling the coming facility “a hospital within a hospital.”
The county expects the extra beds and associated equipment in what is officially dubbed a “federal medical station” likely will arrive inside the next 10 days, by mid-April. Once the items arrive, and a national expert comes to run the set-up, it will take no more than a day or two to get the field hospital operational.
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San Diego scientists test 13,000
existing drugs for COVID-19 use
Scientists at the Sanford Burnham Prebys Medical Discovery Institute are testing 13,000 FDA approved compounds against live samples of COVID-19 to determine effectiveness. With 300 of the drugs showing promise against the virus, the institute hopes to narrow it down to a combination of one or two to fight the virus.
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Cue Health gets $13 million contract
to develop COVID-19 test
Cue Health, a San Diego-based health care technology company, has been awarded a $13 million federal contract to fund the development of its COVID-19 diagnostic test, which would provide results in under 25 minutes. The funding comes from the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority to accelerate the test’s development, validation, and FDA clearance.
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Biocom develops COVID-19 Partnering portal
In collaboration with EDC, Biocom has developed a Coronavirus Partnering portal that connects companies with capacity with those in need. Companies with resources and demands around supplies, testing, treatments, and vaccines are now able to connect and gain assistance via Biocom’s online portal.
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Telehealth startup AristaMD raises $18 million
AristaMD, a San Diego software company, has raised $18 million in a second round of venture capital funding for its platform that taps telehealth to speed up treatment for patients. AristaMD provides a platform that digitally links primary care doctors with on-call, board-certified health specialists, such as orthopedists and psychologists, for online consultations.
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JLL arranges $58.5 loan for
San Diego multi-housing portfolio
The portfolio consists of five recently renovated workforce-oriented housing properties
JLL Capital Markets has arranged $58.5 million in financing for a recently renovated, five-property multi-housing portfolio totaling 328 workforce-oriented housing units in San Diego.
JLL worked exclusively on behalf of the borrower, Real Asymmetry, to arrange the 10-year, fixed-rate loan through Union Bank. The loan proceeds were used to refinance existing bank debt at a much lower rate, including an initial interest-only period, and provided for a very flexible prepayment structure.
The properties in the portfolio are located in and around east San Diego, which is one of the fastest growing multi-housing markets in greater San Diego. The portfolio includes Asana at North Park at 3710-3810 Wabash Ave.; Pacific Cove at 4019 Oakcrest Drive; Tierra Del Rey at 3675 King St.; Tiburon at 7740 Parkway Drive; and at 1028 14th Street. The portfolio’s average occupancy at closing was 96 percent.
The JLL Capital Markets team representing the borrower was led by senior director Zane Sweet.
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TurboTax launches free product to help
Americans get their Stimulus money
San Diego-based TurboTax, the online tax preparation service from Intuit Inc., said it has launched a free, Stimulus Registration product designed to help millions of Americans who are not required to file a tax return easily register with the IRS to get their stimulus money.
In partnership with the IRS, TurboTax volunteered to create an innovative solution to help this group easily get their stimulus payment. The TurboTax Stimulus Registration product was designed to help millions easily file a minimum tax return with the IRS, which has the information needed to determine their stimulus eligibility. Users simply answer a few questions and then choose to receive their payment via direct deposit or check. The IRS strongly recommends selecting direct deposit, so that taxpayers can get their stimulus payment as quickly as possible.
