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California State Assembly
Committee on Jobs, Economic Development, and the Economy

JEDE COVID-19 weekly Update - March 23 Edition

MAJOR ANNOUNCEMENTS

  • California COVID-19 Update:   Below is the most current CalOES status update.  www.covid19.ca.gov

  • JEDE Hearing on Recovery:  The Assembly Committee on Jobs, Economic Development, and the Economy, Chaired by Assemblymember Sabrina Cervantes, held its second in a series of hearings examining the economic impact of the COVID-19 pandemic.  https://ajed.assembly.ca.gov/content/2021-priorities-inclusive-economic-recovery  The hearing provided an opportunity to the JEDE Committee to be briefed by Tim Rainey, Executive Director of the California Workforce Development Board who outlined the Newsom Administration’s proposals on workforce training and reemployment and Brian Uhler, Deputy Legislative Analysts, who discussed the LAO’s new framework for evaluating economic stimulus proposals.   The hearing also featured business and labor leaders - Lance Hasting, President of California Manufacturing and Technology Association, Ron Miller, Executive Secretary of Los Angeles/Orange County Building Construction and Trades Council, and Tracy Stanhoff, President of American Indian Chamber of Commerce - who discussed their economic priorities and organizational efforts for an inclusive economic recovery.  Among other key recommendations from the hearing, witnesses recommended:  

    • A top economic recovery priority is helping businesses to re-open.  Strategies about business attraction are longer term solutions.  The most immediate results will come from investing in existing businesses.

    • California needs to focus on creating more good paying jobs.  This means creating a concrete pathway to high quality jobs, aka high road jobs.

    • Increase funding for the Main Street Tax Credit, established through SB 1147 (Bradford, Caballero, and Cervantes), while also expanding eligibility to include new firms.

    • Training is only one part of the solution.  An equitable workforce training program also requires workers have access to supportive services, including childcare, food programs, affordable housing, and health care.

    • Increase funding for the Employment Training Panel, including its apprenticeship programs, contract education, and other multiple employer contract options.

    • Careful targeting of stimulus activities is essential and this must include technical assistance and outreach.

    • California needs to get ready to access federal infrastructure funding.

  • Future Tax Cuts in California:  Governor Newsom, Senate President pro Tempore Atkins and Assembly Speaker Rendon issued a joint statement on additional support for businesses and employees grappling with the impacts of the pandemic:  “With small businesses and their employees still suffering from the consequences of COVID-19, we continue to work on measures to provide them additional relief related to federal Paycheck Protection Program (PPP) loans, as was done last year under AB 1577.  The legislation that would conform to the federal tax treatment of these grants will be delayed temporarily while we seek detailed guidance from the U.S. Treasury Department regarding provisions in the American Rescue Plan Act signed yesterday by President Biden.  We remain committed to an equitable and broad-based recovery and acting expeditiously to provide additional relief to businesses in the state—especially those that have been hardest hit by COVID-19, such as bars, restaurants, barbers, nail and hair salons, and performing arts venues, among others.”  https://www.gov.ca.gov/2021/03/12/governor-newsom-legislative-leaders-issue-statement-on-additional-covid-relief-for-businesses-and-employees/

  • More Money Back on Car Insurance:  California Insurance Commissioner Lara directed auto insurance companies to report by April 30 how they will return money to California policyholders who were overcharged in 2020.  http://www.insurance.ca.gov/0400-news/0100-press-releases/2021/release030-2021.cfm  This is a follow-up to an April 2020 order by the Commissioner, which called on auto insurance companies to return a percentage of paid premiums to policy holders who were not driving due to stay-at-home orders.  Insurers rebated more than $1.75 billion in 2020.  Recently the Commissioner undertook “a systematic review of data submitted by insurance companies — the only such review in the country — he has found that insurance companies continued to overcharge consumers despite drastically reduced risk of accidents and loss due to the ongoing pandemic.”  The Commissioner is also directing commercial insurance companies to provide data about commercial policies held by California businesses, which could lead to additional savings for small businesses that are struggling to survive due to the pandemic.

  • Federal Infrastructure Package: President Biden has announced a $3 trillion infrastructure package, which is intended to” boost the economy, reduce carbon emissions and narrow economic inequality.”  The package could be introduced this week and may be brought forward to the US Congress in multiple pieces.  Funding for the plan is being reported as coming from an increase in corporate taxes which were significantly reduced in 2017.  The New York Times reports, “Mr. Biden’s advisers plan to recommend that the effort be broken into pieces, with Congress tackling infrastructure before turning to a second package that would include more people-focused proposals, like free community college, universal prekindergarten and a national paid leave program.”

  • General Fund Revenues Above Estimates:  Governor Newsom announced that General Fund revenues are running $14.3 billion above January’s revenue forecast, with receipts for February exceeding the month’s projections by $3.8 billion.  https://www.gov.ca.gov/2021/03/22/february-receipts-beat-forecast-by-3-8-billion-now-up-14-3-billion-over-january-forecast/   A significant proportion (60%) of February’s revenue gain are attributed to “lower refunds caused by later enactment of the $600 one-time Golden State Stimulus than expected in the budget, as well as fewer-than-expected state tax refunds tied to a delayed federal start to the tax filing season.”

  • Supplemental Paid Sick Leave:  Governor Newsom signs SB 95 (Skinner) Chapter 31, Statutes of 2021, which reestablishes the COVID-19 supplemental paid sick leave for employers who have more than 25 employees, as defined.  The bill mandates that business owners provide up to 80 hours of COVID-19 supplemental paid sick leave for eligible employees, including those advised to quarantine or isolate and those caring for COVID-impacted family members.  The bill extends protections through September 30, 2021 and is retroactive to sick leave taken beginning January 1, 2021. Small businesses employing 25 or fewer workers are exempt from the legislation, but may offer supplemental paid sick leave and, if eligible, receive a federal tax credit.

  • Financial Stability Implications of Climate Change:  Governor Lael Brainard of the US Federal Reserve Board discussed the financial implications of climate change at "Transform Tomorrow Today," the Ceres 2021 Conference in Boston, Massachusetts (via webcast).  https://www.federalreserve.gov/newsevents/speech/brainard20210323a.htm  Among other key points, Brainard spoke about the Federal Reserve’s new Supervision Climate Committee (SCC), which is tasked with strengthening the Board’s capacity to identify and assess climate change-related financial risks.  “From a microprudential perspective, the Federal Reserve's Supervision and Regulation Report discusses how the effects of climate change can manifest in the financial system via traditional channels like credit, market, operational, legal, and reputational risks that affect the safety and soundness of individual firms. From a macroprudential perspective, our Financial Stability Report outlines how climate change could increase financial shocks and financial system vulnerabilities that could further amplify shocks.”

  • Economic Outlook for Small Business:  Governor Michelle W. Bowman of the US Federal Reserve Board spoke on the economic outlook for small businesses at the Economic Club of Oklahoma in Oklahoma City, Oklahoma.   https://www.federalreserve.gov/newsevents/speech/bowman20210322a.htm  His remarks began with a comprehensive overview of macro- and mico-economic data, which was followed by his perspectives on the future recovery.  “You may be tempted to ask why I am so focused on small businesses.  For one, it is because the roughly 32 million small businesses in the United States comprise an important source of job growth in the macro-economy, and they have an outsized impact on their local communities.  Over the past decade, small businesses created 10.5 million net new jobs, accounting for roughly two-thirds of overall net new job creation.  This, as I see it, is why the potential for a wave of small business failures is one of the main risks to my expectation that our economy will make further substantial progress toward our goal of full employment.  Moreover, from my vantage point as a former community banker, I see other potential negative consequences: Because small businesses often form the backbone of the communities where they are located, their disappearance could have profound and long-lasting community-level effects as well.”

GOOD NEWS ABOUT JEDE FRIENDS

  • Tara Lynn Gray in Small Business Advocate:  Governor Newsom appointed Tara Lynn Gray at the California Small Business Advocate.  Part of her duties will be to serve as the deputy director of the Office of the Small Business Advocate, part of the Governor’s Office of Business and Economic Development (GO-Biz).

    • "Tara is a tireless and effective leader in California's small business community and the right choice at this pivotal time," said Ashley Swearengin, CEO of the Central Valley Community Foundation and former mayor of Fresno.  "As the State of California continues its recovery, Tara will turn advocacy into action, get results for small businesses, and ensure our diverse small business owners and entrepreneurs are at the table driving towards an equitable and inclusive economic recovery."

    • "As California continues in its recovery, it’s crucial that we recognize minority, women, and immigrant small business owners across the state and the need for connection that is authentic," said Jay King, President/CEO of the California Black Chamber of Commerce.  "Tara is a one-of-a-kind advocate making her exceptionally well-positioned for this new role.  Her dedication to all of California’s small business owners will ensure that inclusivity and equity absolutely remain the cornerstone of our economic recovery."

    • "Our recovery must focus on equitable small business growth," said Mark Herbert, Managing Director of California for Small Business Majority. "As a longstanding advocate for small businesses across the state, Tara's insight and commitment to the needs of all of our entrepreneurs is critical as the State continues its important work to preserve all of the small businesses that make our communities home.  Today’s announcement is yet another proof point of Governor Newsom's ongoing commitment to equity and inclusivity as we recover together."

    • "Small business has always been integral to the success of California’s economy, which is why today is a very special day for small business owners and entrepreneurs across the state," said Betty Jo Toccoli, President of the California Small Business Association. "Tara will bring a longstanding history of understanding the nuances of small business and advocacy for small businesses to this new role.  She is extremely well-qualified for this position and we couldn’t be more ecstatic to collaborate with her to ensure an equitable recovery and sustained growth for California’s small business community."

    • "Small businesses are the hardworking hearts of our communities," said Tate Hill, Executive Director of Access Plus Capital. "As they continue to face the ongoing challenge of recovering from this pandemic, they need an advocate who won’t stop when it comes to providing them all the support possible so they can be the engines of our economy they're meant to be. Tara is the right person at the right time to help lead the fight to strengthen California’s local small business ecosystem."

  • Guzman AP Interview:  Newly confirmed SBA Administrator Isabela Guzman was interviewed by the Associated Press.  https://apnews.com/article/technology-small-business-covid-19-pandemic-coronavirus-pandemic-e1bc641c0dbc9604042998b4b01066d3  “Isabella Casillas Guzman said her immediate focus is implementing the small business provisions in the $1.9 trillion coronavirus rescue package President Joseph Biden signed into law last week.”

  • Women’s Military History Week:  Governor Newsom issued a proclamation declaring March 15-21, 2021, as Women’s Military History Week in the State of California.  https://www.gov.ca.gov/wp-content/uploads/2021/03/2021-Womens-Military-History-Week-text.pdf

  • Solorio Appointed to Water Commission:  Governor Newsome appointed Jose Solorio of Santa Ana to the California Water Commission. Solorio has been a Government Affairs Officer at Moulton Niguel Water District since 2018. He was a Santa Ana City Council Member from 2016 to 2020 and from 2000 to 2006, Senior Policy Advisor at Nossaman LLP from 2014 to 2017 and a California State Assemblymember for the 69th District from 2006 to 2012. Solorio was a Marketing Program Administrator and Government Relations Representative at the Orange County Transportation Authority from 1998 to 2006. Solorio earned a Master of Public Policy degree in government and business policy from Harvard University.  This position requires Senate confirmation.

DATA, SURVEYS, AND ANALYSES

  • February US Employment Data (most current):  US Bureau of Labor Statistics (BLS) released national-level employment data for February 2021.  https://www.bls.gov/news.release/empsit.nr0.htm  According to the report, total US nonfarm payroll employment increased by 379,000 jobs in February, reflecting a 6.3% unemployment rate.  In releasing the data, the BLS stated: “most of the job gains occurred in leisure and hospitality, with smaller gains in temporary help services, health care and social assistance, retail trade, and manufacturing. Employment declined in state and local government education, construction, and mining.” Unemployment among selected worker groups:  13.9% for Teenagers, 5.9% Adult Women, 6% Adult Men, 9.9% for Blacks, 8.5% for Hispanics, 5.1% for Asians, 5.6% for Whites.

  • January California Employment Data (most recent):  The Employment Development Department released state-level data for January 2020.  https://www.labormarketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf    California’s unemployment rate was 9.0% in January. Nonfarm payrolls contracted by -69,900 jobs. Unemployment among Blacks and Latinx were reported as 13% and 12.1% respectively.  For comparison, California lost 2,615,800 nonfarm jobs between March and April 2020. 

  • CA Trade Report:  Beacon Economic has released its monthly analysis of California trade activity. This report analyzes data released by the U.S. Census Bureau’s Foreign Trade Division. https://beaconecon.com/publications/california-exports-stymied/  According to the report, California shipments of manufactured products decreased by -4.7% to $8.4 billion from the $8.8 billion one year earlier. Exports of non-manufactured goods (primarily agricultural products and raw materials) were down by -16.9% to $1.4 billion from $1.7 billion.  For the month of January, California’s share of all US merchandise exports slipped to 10.3% from 10.4% one year earlier.  “California’s export trade in January was marginally lower than in the first month of 2020 as logistical snags frustrated many exporters, according to Beacon Economics’ analysis of the latest US trade statistics released this morning by the U.S. Census Bureau.  Businesses in the state shipped a total of $13.115 billion in merchandise abroad in January, a nominal decline of 2.5% from the $13.452 billion in exports the state recorded in the first month of 2020. By comparison, the value of all U.S. merchandise exports dipped by 1.1% from a year earlier, while exports from Texas were off by 2.8%.” 

  • The Future of Credentialing of Servicemembers and Veterans:  The American Legion issued a report, The Future of Credentialing of Servicemembers and Veterans.  https://www.legion.org/sites/legion.org/files/legion/publications/35VEE0221-The-Military-Credentialing-Advancement-Initiative-Report.pdf  The report is organized around five work streams, which were used to align work and develop findings and recommendations:

    • Work Stream 1:  Public-private partnerships, emphasizing those undertaken with the Department of Defense (DoD).

    • Work Stream 2:  Stackability of credentials and recognition of military-based learning as key in facilitating credential attainment and career progression.

    • Work Stream 3:  Utilization of resources to identify and fill gaps in military-based training and education.

    • Work Stream 4:  Legislation and policy, and their role in facilitating credentialing.

  • Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA granted a 30-day extension to allow the program to continue to March 8, 2021.  Interested restaurants and food providers are encouraged to fill out this form: https://state-of-california-agency.forms.fm/great-plates-delivered-food-provider-interest-form/forms/7917   

Great Plates Delivered
Meals served as of 3/21
28,757,474
Individuals Served This Week
40,123
Food Providers Contracted
647
Data received from Great Plates Data Portal updated on Sundays.
 
 
 
 

 

 

 

GRANTS

High Road Construction Careers
Project Name
Award Amount
In-Kind
Total Program
Region 1: East Bay Regional Trades Program
$832,000
$1,040,000
$1,872,000
Region 2: Working Partnership USA
$590,000
$998,000
$1,588,075
Region 5: San Diego Workforce Partnership
$749,934
$0
$749,934
Region 6: Workforce Development Board Ventura County
$551,555
$0
$551,555
Region 7: North Bay Trades Introduction Program
$221,718
$80,350
$302,068
Region 8: LA/OC MC3
$1,200,000
$0
$1,200,000
Region 10:  Valley Build
$1,194,400
$0
$1,194,400
Region 12: Sac-Sierra-Yolo High Road Training
$254,794
$150,000
$404,794
Total
$5,594,399.65
$2,368,425
$7,962,825

Source:  https://cwdb.ca.gov/wp-content/uploads/sites/43/2021/03/CWDB-PressRelease-HRCC-CCI-FINAL_ACCESSIBLE.pd

  • Strategic Trends Research Initiative:  The Department of Defense’s Threat Reduction Agency issued a solicitation for credible, timely, operationally relevant and actionable research products that can inform Strategic Trends Division’s efforts to forecast the 2025 to 2030 threat environment. They seek white papers and proposals for research studies, strategic dialogues, and tabletop exercises. This opportunity is for small businesses, and individuals among others with a maximum contract of $350,000- with a March 2, 2025 deadline. https://beta.sam.gov/opp/a855088bd3304af0bd35fb830091d4c8/view#history 

  • Intercity Bus Security Grant:  The US Department of Homeland Security is accepting applications for the Intercity Bus Security Grant, a program that helps protect surface transportation infrastructure and the traveling public from acts of terrorism, while also increasing the resilience of transit infrastructure. This funding provides owners and operators of intercity bus systems with resources for implementation of the National Preparedness System and works toward the National Preparedness Goal of a secure and resilient nation. The deadline for applications is May 14, 2021 and an award of $2,000,000 is available. https://www.fema.gov/grants/preparedness/intercity-bus-security 

  • Research Contract on Policing and Homelessness:  The Department of Justice National Institute of Justice seeks proposals for rigorous research and evaluation projects to conduct exploratory research and secondary/open data analysis to assess the range of practices, strategies, and tactics used by police to respond to homelessness. Applicants must propose case studies, among other research activities, to establish the complexity and breadth of public and private agencies, organizations, and institutions connected to the police response to homelessness. The total reward is $3,000,000, and the application is due April 19, 2021.  https://nij.ojp.gov/funding/opportunities/o-nij-2021-55001 

  • Grant to Improve Recycling: The Department of Resources Recycling and Recovery is accepting applications from California local governments and recycling center operators for projects that improve redemption opportunities for eligible beverage containers and increase recycling rates in underserved convenience zones statewide. The total award is $1,000,000- $5,000,000 and the application is due January 1, 2022.  https://www.grants.ca.gov/grants/beverage-container-redemption-pilot-project-grant-program-2019-20/

  • Open Bid for New MBDA Manufacturing Center:  Minority Business Development Agency (MBDA) is accepting applications from interested parties who want to open and operate one of four MBDA Advanced Manufacturing Centers.  These Centers provide business development and manufacturing assistance services to minority business enterprises. https://www.mbda.gov/mbda-advanced-manufacturing-project   The deadline to apply is April 8, 2021.

UNEMPLOYMENT INSUANANCE AND PANDEMIC UNEMPLOYMENT ASSISTANCE

  • State Unemployment Benefit Data:  The Employment Development Department (EDD) released new unemployment insurance data for California during the week ending March 13, 2021.  https://www.edd.ca.gov/newsroom.htm  Among other information, EDD reports the following:

    • 40,993 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims were filed during the report period.

    • Over 10.9 million initial unemployment benefit claims have been filed with EDD between March 13, 2020 and the close of the report period.

    • $130 billion has been paid to out-of-work Californians since the start of the pandemic. 

  • Tracking UI Benefits:  The California Employment Development Department (EDD) launched identity verification technology to help address the backlog of unprocessed unemployment benefit applications, including the Pandemic Unemployment Assistance.  On March 19, 2021, EDD released its bi-weekly report to the Legislature addressing the backlog:  https://www.edd.ca.gov/About_EDD/pdf/CUIC-337-legislative-report-031921.pdf  Progress in eliminating the backlog are also tracked through these two data dashboards:

    • Unemployment Initial Claims Backlog Dashboard:  As of March 17, 2021, 935, 099 individuals have been waiting more than 21 days for an initial payment or to be notified that they do not qualify for benefits.

    • Unemployment Continued Claims Backlog Dashboard:  As of March 17, 2021, 121, 222 individuals received at least one payment and are now waiting more than 21 days for further processing of payment or disqualification in this week-by-week eligibility-based program.

UPDATES AND STATUS REPORTS ON SMALL BUSINESS ACCESS TO CAPITAL

[This is a “quick-source” section that includes new and previously provided information.]

  • April 7 Deadline for EIDLs Related to Civil Unrest:  The US Small Business Administration’s Disaster Field Operations Center-West released a reminder that California small businesses have until April 7, 2021, to apply for an SBA federal disaster loan for economic injury caused by the civil unrest in Sacramento and San Diego counties that occurred May 26 – Dec. 28, 2020.  Applicants may apply online and receive additional disaster assistance information at https://disasterloanassistance.sba.gov/. SBA’s Customer Service Center: (800) 659-2955.

  • California Competes Tax Credit:  The Governor’s Office of Business and Economic Development announced that the application period for $71.1 million in California Competes Tax Credits (CCTCs) is open from March 8 to March 29, 2021.  This tax credit is designed to support businesses making new capital investments and adding quality, full-time jobs in California that might not otherwise be created by the business or any other business.  The online application can be accessed at www.calcompetes.ca.gov.  

  • California Small Business Grants:  The Office of the Small Business Advocate launched a Small Business COVID-19 Relief Grant program, which provided nearly $500 million in grants to small businesses and small nonprofits that have been negatively impacted by the COVID-19 pandemic.  The Legislature approved and the Governor signed SB 87 (Caballero and Min) on February 23, 2021, which provide as additional $2.1 billion in grant funds through a minimum of three additional funding rounds.

    • Application and award notice period for Rounds 1 and 2 is completed.  Over 354,000 applications were received in Rounds 1 and 2, requesting a total of $4.5 billion

    • Preliminary data shows that 43,419 applicants received at least initial approval for a total of $495 million.  95% of the awardees were from small business applicants, as compared to applications from nonprofits.  More information on small business applications is available at:  https://static.business.ca.gov/wp-content/uploads/2021/02/SBCRG-Preliminary-Data-FINAL-022321.pdf

    • Application guidance is available here:  https://careliefgrant.com/wp-content/uploads/2021/01/CRG-All-Businesses-Program-and-Application-Guide-Public-Updated-01.28.21.pdf

    • Free one-on-one technical assistance is available through a wide range of nonprofit resource providers, including SBDCs, Women’s Business Centers, and ethnic chambers of commerce:  www.CAReliefGrant.com.     

    • Funding Rounds Announced:

      • Round 5: Thursday, March 25th through Wednesday, March 31st

        • Eligible applicants: current waitlisted small businesses and non-profits not selected in Rounds 1, 2, or 3 and new applicants that meet eligibility criteria found at CAReliefGrant.com

        • Eligible grant award: $5,000 - $25,000

        • Details: Applicants not selected to receive a grant in Rounds 1, 2, & 3 do not need to reapply as they will be automatically moved into Round 5. New applicants will need to apply at CAReliefGrant.com

      • Round 6: Date to be announced soon

        • Eligible applicants: current waitlisted small businesses and/or non-profits not selected in Rounds 1, 2, 3, 4 or 5 and new applicants that meet eligibility criteria found at CAReliefGrant.com

        • Eligible grant award: $5,000 - $25,000

        • Details: Applicants not selected to receive a grant in Rounds 1, 2, 3 & 5 do not need to re-apply and will be automatically moved into Round 6. New applicants will need to apply at CAReliefGrant.com

  • Tax Credits for Required Paid Leave:  The Internal Revenue Service (IRS) maintains a webpage on current information regarding tax credits employers may apply when meeting COVID-19 employee paid leave requirements.  https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs This includes, but is not limited to, the newly extended Employee Retention Credit.  https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-how-to-claim-the-employee-retention-credit-faqs  The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to the credits previously authorized under the CARES Act, including modifying and extending the Employee Retention Credit.  Several of the changes apply only to 2021, while others apply to both 2020 and 2021.  The maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.  Small employers may request advance payment.

    • Are You Eligible for A Tax Credit?  The Internal Revenue Service released a new form to help eligible self-employed individuals determine their qualified sick and family leave credit under the Families First Coronavirus Response Act -- IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals:  https://www.irs.gov/pub/irs-pdf/f7202.pdf

    • Guidance on the Employee Retention Credit:  The Internal Revenue Service (IRS) issued guidance for employers claiming the employee retention credit under the CARES Act, as modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).  https://www.irs.gov/newsroom/irs-provides-guidance-for-employers-claiming-the-employee-retention-credit-for-2020-including-eligibility-rules-for-ppp-borrowers The guidance in Notice 2021-20 includes clarifications and describes retroactive changes under the new law applicable to 2020, primarily relating to expanded eligibility for the credit.  “For 2020, the employee retention credit can be claimed by employers who paid qualified wages after March 12, 2020, and before January 1, 2021, and who experienced a full or partial suspension of their operations or a significant decline in gross receipts. The credit is equal to 50% of qualified wages paid, including qualified health plan expenses, for up to $10,000 per employee in 2020. The maximum credit available for each employee is $5,000 in 2020.”  The guidance also explains when and how employers that received a Paycheck Protection Program loan can also claim the employee retention credit for 2020.  This is one of the most significant changes to the Employee Retention Credit made by the Relief Act. 

  • FAQ for Federal Contracting:  The Small Business Administration issued a new FAQ about certification options available to Women-Owned Small Businesses and Economically Disadvantaged Women-Owned Small Businesses.  https://www.sba.gov/document/support-faqs-wosbsedwosbs

  • 100% Corporate Donation Exemption:  The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2021, temporarily increased the corporate contribution limit to 100% of a corporation’s taxable income for contributions paid in cash for relief efforts in qualified disaster areas.   https://www.irs.gov/forms-pubs/about-publication-526 While donations related to COVID-19 are not eligible, other specified federally declared disaster are eligible, including certain fires.

  • Shuttered Venue Operators:  The US Small Business Administration is launching the Shuttered Venue Operators (SVO) Grant program, as authorized by The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.  Under the new program, $15 billion is dedicated to making grants to shuttered venues who may receive up to 45% of their gross earned revenue, up to a $10 million.  $2 billion of the grants are reserved for businesses with 50 or less employees. 

 

PPP Applicant

Shuttered Venue Operators Grant Applicant

COVID-19 EIDL Applicant

PPP Recipient

First Draw PPP borrowers may be eligible to apply for Second Draw PPP loans

May apply for SVOG if received a PPP loan prior to 12/27/20

May apply for EIDL; PPP and EIDL can’t be used for the same purpose/costs

Shuttered Venue Operators Grant Recipient

Not eligible to apply for PPP loan

May be eligible to receive a supplemental SVOG award

May apply for EIDL; SVOG and EIDL can’t be used for the same purpose/costs

COVID -19 EIDL Recipient

May apply for PPP; EIDL and PPP can’t be used for the same purpose/costs

May apply for SVOG; EIDL and SVOG can’t be used for the same purpose/costs

The same business cannot apply for more than one EIDL

State Small Business Disaster Loan Guarantee Program (February 26, 2021)

 

Conditionally Approved

Loan Amount

Guarantee Amount

Amount Encumbered

Employees

Total

1359

$ 55,971,346

$ 53,001,062

$ 26,500,531

6825

The IBank provides the Joint Legislative Budget Committee an update monthly.

CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS

[This is a “quick-source” section that includes new and previously provided information.]

FREE WEBINARS

JEDE maintains a list of upcoming and on-demand webinars on our website.  Upcoming webinars are listed here (https://ajed.assembly.ca.gov/content/free-webinars) and on-demand webinars can be found at https://ajed.assembly.ca.gov/content/demand-webinars-available-24-7.  These webinars cover a range of topics, including federal disaster programs, marketing during the COVID-19 pandemic, and accessing international markets.

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