New Fed Survey Shows Pandemic’s Impact on Low- to Moderate-Income Communities

ST. LOUIS — COVID-19 continues to have a profound effect on people nationwide. A new Federal Reserve System report co-authored by the Federal Reserve Bank of St. Louis shows specific challenges that low- to moderate-income (LMI) communities are facing.

The report, “Perspectives from Main Street: The Impact of COVID-19 on Low- to Moderate-Income Communities and the Entities Serving Them,” examines findings of a nationwide survey of nonprofits, financial institutions, government agencies and other community organizations. The survey was conducted in June 2020 with over 1,800 respondents serving rural, suburban and urban areas across the U.S. It included more than 200 respondents from the Eighth Federal Reserve District served by the St. Louis Fed.

Key findings show:

• Sixty percent of respondents nationally (52% in the Eighth District) indicated COVID-19 was significantly disrupting economic conditions in the communities they serve and said they expect the recovery to be difficult.
• The most frequently cited impacts of COVID-19 were income loss, job loss and unemployment.
• Over 40% indicated it will take over 12 months for the communities and people they serve to return to economic conditions they were experiencing prior to the pandemic’s disruption.

(See Appendix PDF for all Eighth District findings.)

“As the world continues to learn more information about COVID-19, the virus’s harrowing effects upon LMI individuals and communities, and those that champion them, are becoming increasingly apparent,” said Daniel Paul Davis, vice president of community development and community affairs officer at the St. Louis Fed. “In routinely probing community and economic development leaders and practitioners on their efforts during the pandemic, the Federal Reserve System aims to highlight COVID-19’s overall impact by amplifying the voices of those that are witnessing it firsthand.”

All 12 Reserve banks and the Board of Governors conducted a similar survey in April.

The St. Louis Fed seeks to promote the economic resilience and mobility of individuals and communities across the U.S., including LMI and underserved households. Increasing economic opportunity is not only good for individuals and communities, but also is vital to the overall economy. More at www.stlouisfed.org/community-development.