Business confidence "has fallen off a cliff" in the Riverina-Murray due to COVID-19, after an improvement from the summer's bushfires.
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But Business NSW regional manager Andrew Cottrill is confident the local economy will survive the pandemic and has urged owner-operators to persevere.
The March Business Conditions Survey shows business confidence improved from December in the region and was among the strongest in the state, before the virus brought it crashing down.
"Our region had relatively strong confidence, and that was related to the fact we got some good rains at the time these surveys were out," Mr Cottrill said.
"But everything has effectively dropped off a cliff because of COVID-19.
"We have a very resilient business community in this region - I'm amazed to see them recovering time after time from economic disasters.
"There hasn't been one as bad as this, but I'm confident our community will find a way through."
Business confidence is at its weakest since 2009 across NSW and conditions are deteriorating rapidly; there was a doubling of revenue losses between the weeks beginning March 16 and March 23.
Southern NSW is among the areas hit by fires and the pandemic, and Mr Cottrill expects recovery efforts will be combined when the worst passes.
"There were some bushfire stimulus packages that didn't necessarily hit the ground ... unfortunately just as that money started to flow and events started to come to fruition, we were hit with COVID-19," he said.
"We've been able to secure, through the NSW government, that funding will be carried forward," Mr Cottrill said.
"We'll be keen to work with local councils across the region to form some recovery taskforce groups.
"This has reached right into our back pocket and is hurting everyone.
"Businesses have really had to reinvent themselves to ensure they fit with social distancing guidelines ... indeed many have had to close and lay-off staff."
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Mr Cottrill welcomed the federal government's stimulus package including the job-keeper payment and cost recovery grants.
"The focus at the moment is making sure we triage businesses and help them understand what supported packages they can get," he said.
"What's missing right now is a little bit of detail, and the timing of the cash flow.
"The PAYG rebates come through at the end of April and July, so none of that has hit the pockets of any businesses yet.
"We're waiting on the detail and applications [for the job-keeper payment] to be processed."
Mr Cottrill said the next quarter would likely reveal the full extent of the virus' impact on the business sector and hoped to see a positive turn thereafter.
"Businesses can't see much confidence in things improving, at least through the next quarter," he said.
"The NSW Premier today came out and said she could see restrictions being loosened, but social distancing being something we live with as the new normal.
"That happening may start to build confidence."