States rush to keep afloat businesses crushed by the pandemic

States rush to keep afloat businesses crushed by the pandemic

Among the countless things transformed by the coronavirus pandemic is the perennial competition between the states for business, jobs and the revenue that comes with them. Make no mistake, the experts say, that battle is still going strong. But the battle lines have shifted dramatically.

"If anything, this is going to increase competition among the states, which truthfully is always one of the inherent advantages that America has had," said Tom Stringer, a managing director and practice leader for site selection and incentives at BDO USA in New York, in an interview with CNBC.

But rather than relentlessly trying to poach big employers from other states “” often by dangling massive incentives and tax breaks “” state economic development authorities have shifted their focus toward shoring up the businesses they have, at least for now. Some states are offering targeted loans and loan guarantee programs to help businesses affected by the pandemic.

"No. 1 is get out and talk to your largest employers in your regions and find out what do they need and what are they going through," he said. "Going forward getting their workforces back on board is probably one of their biggest issues."

"These agencies are still in retention mode," Stringer