Utah’s Economy Amid a Pandemic

Utahns had only heard casual mentions and a few news reports about a new highly contagious respiratory virus as 2020 started, and the state’s economy was firing on all cylinders. The state had just been named “America’s economic star” by The Wall Street Journal. In the past decade, it also enjoyed six top-three rankings as the country’s best economy by Forbes, including three times in the No. 1 spot.

Utah’s economy also received top marks from the latest Hachman Index report, identifying Utah as having the country’s most diverse economy. And, 2019 concluded the state’s most successful tax credit program to-date, with 20 companies participating in the legislatively authorized post-performance program. Combined, the companies that received the incentive are projected to create 9,643 high-paying jobs across various sectors, generate $306,196,993 in new state revenue, and fund $602,963,462 in Utah capital investment during the next 15 years.

In a nutshell, Utah’s economy was riding high with low unemployment and favorable economic indicators at nearly every turn.

Then COVID-19 spread across the globe, reaching Utah in March, the same month the World Health Organization declared it a pandemic. The coronavirus pandemic arrived like a road closed sign to the world in early 2020.

In reaction to the quickly spreading virus, Utah’s governor took a measured approach to closing enterprises and activities to protect public health. Utah’s government, education, and civic leaders gathered and assembled the nation’s first statewide strategic plan to address the pandemic, the Utah Leads Together plan.

While not immune to the pandemic’s impacts, Utah weathered the 2020 storm as well as just about any other state. Like the rest of the country, unemployment spiked in the spring and slowly recovered over time. By the end of the year, Utah’s leading economic indicators again positioned the state ahead of most other states and very favorably compared to the country. In December 2020, U.S. unemployment was at 6.7%, while Utah experienced just 3.6% unemployment.

It’s difficult to comprehend that a tiny, unseen virus can have such an enormous impact on health and activities worldwide. But, that’s the position we all found ourselves in during 2020.

In response to the coronavirus pandemic, Congress passed the largest stimulus bill in its history, nearly $2 trillion, known as the CARES Act. It provided much-needed relief to Americans and states. Utah received $1.25 billion from the federal government to address the pandemic’s impacts in the state.

In true collaborative fashion, Utah leaders identified which industries were hardest hit and how to help them. In all, GOED managed 11 separate Legislature-allocated programs and initiatives using federal CARES Act funds that infused more than $173,589,765 into the local economy.

Innovative Utah programs included: Shop In Utah — A $64 million grant to help support businesses and provide discounts to consumers. Companies that lost revenue due to the pandemic could qualify for grants of up to $150,000 as long as they committed to providing 50% of the grant amount to customers in the form of a discount.

“I can only think of great things to say about the GOED #ShopInUtah Grant program. The funds allowed us to offer deep discounts on our services. Magpie Cycling sends you a huge thank you.”

— Maggie Wilson, Magpie Cycling

Utah Hospital Grants — $20 million available to Utah hospitals to address their needs resulting from the pandemic.

Learn & Work In Utah — $16.5 million to Utah’s colleges and universities to help workers retrain and re-skill. Participating institutions worked with businesses to create 164 new programs to address unemployment and provide new opportunities. The grant program covered most tuition expenses for Utah students.

“This pandemic forced a great deal of change on all of us in education. One positive result is that it has pushed me out of my comfort zone and caused me to develop the skills necessary to teach in a virtual classroom effectively. Now, I have a great deal more knowledge and ability within my field, which makes me a more effective educator.”

— Tom Carlisle, Parowan, UT Meet In Utah — $13.5 million to support Utah’s convention and meeting industries.

Small Business Bridge Loan — A $12 million gap funding program to help Utah small businesses with cash flow in early April 2020. Loans were offered at 0% interest and five-year terms with no payments due for 12 months. The Bridge Loan program used state funds, while other programs listed utilized CARES Act funds.

Commercial Rental Assistance Grant — $20 million to provide rental relief to Utah small businesses that lost revenue due to measures taken during the pandemic to minimize the public’s exposure to COVID-19. The program provided up to $5,000 per month, per location, and up to three months of assistance.

“Thank you very much! These funds come at a time of great need and will go far to buoy my practice during this down period. Please pass along my gratitude to all at GOED that are part of this excellent program!”

— Gary Tremayne, OD, Clarity Vision

A Mask for Every Utahn — $11.8 million to distribute 2.3 million free protective, cloth face masks to Utah citizens.

In Utah — A $4.6 million education and outreach initiative that became the state’s umbrella brand for most pandemic economic response efforts.

Live Events Industry Grant — $3 million to support Utah’s live events industry in December 2020.

“Since I received the grant and purchased my new equipment, I’ve hired local sound engineers, recording studios, singers, and musicians and continue to do so weekly. I appreciate everyone who helped provide us with the CARES Act grants. Thank you!

— Shaun Barrowes, Live for Music LLC Safe In Utah — $3 million to help businesses improve workplace safety for workers and customers during the pandemic through measures such as personal protective equipment (PPE) purchases, workplace redesigns, signage, and technology solutions that allow for distance working.

Utah small businesses were among the hardest-hit segments of the business community. Following the Legislature’s direction, GOED engineered programs to assist companies with handfuls of employees. In 2020, most supported companies were microbusinesses, with 10 or fewer employees (57%), and 33% of businesses had only one to five employees.

GOED also established grant criteria, awarding at least 25% of grant funding to rural Utah — including the 25 counties not located along Utah’s Wasatch Front, or every county except Weber, Davis, Salt Lake, and Utah counties. In 2020, 30% of grant funds went to rural recipients.

Among the economically hardesthit industries, 2020 grant funds were distributed as follows:

Healthcare 18% Leisure and hospitality 17% Food and beverage 16% Education 11% Retail 8%

If there’s one silver lining to the global pandemic, it’s that many valuable lessons for a lifetime were learned. Underscoring Utah’s economic response to the pandemic is an entrepreneurial attitude and collective desire to support Utah’s hard-working residents, upholding the state’s unique quality of life and economic opportunity for all.

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