MAJOR ANNOUNCEMENTS
Unprecedented Surge in COVID-19 Cases: Governor Newsom announced revisions to the Blueprint for Recovery framework. https://www.gov.ca.gov/2020/11/16/governor-newsom-announces-new-immediate-actions-to-curb-covid-19-transmission/ In addition, the Governor is requiring that face coverings be worn by every individual whenever outside their home, with limited exceptions. These changes are being made in response to the significant surge in COVID-19 cases.
40 of the state’s 58 counties currently reside in Tier 4 – Purple/Widespead/Most Restrictive, which includes over 94% of California’s population.
Rather than once a week, changes in county tier assignments may occur any day of the week and may occur more than once a week.
A county may be moved back more than one tier position, if the CDPH determines that that is the most appropriate intervention.
When moving to a more restrictive tier, the county will be required to implement related operational changes the day following the tier announcement.
Revising the Definition of Small Business: The SBA published three proposed rules in the Federal Register recommending the revision of the small business size definitions. Under the Small Business Jobs Act of 2010, the SBA is required to undertake a comprehensive review of small business size standards every 5 years.
Transportation and Warehousing (NAICS 48-49); Information (NAICS 51); Finance and Insurance (NAICS 52); and Real Estate and Rental and Leasing (NAICS 53): https://www.sba.gov/article/2020/oct/01/sba-proposes-small-business-size-standard-revisions-four-industry-sectors
Agriculture, Forestry, Fishing, and Hunting (NAICS 11); Mining, Quarrying, and Oil and Gas Extraction (NAICS 21); Utilities (NAICS 22); and Construction (NAICS 23): https://www.sba.gov/article/2020/sep/29/small-business-size-standard-revisions-four-industry-sectors
Professional, Scientific and Technical Services (NAICS 54); Management of Companies and Enterprises (NAICS 55); Administrative and Support and Waste Management and Remediation Services (NAICS 56): https://www.sba.gov/article/2020/nov/16/sba-proposes-small-business-size-standard-revisions-three-industry-sectors
2021 Legislative Calendar: The Assembly Desk has released the 2021 legislative calendar. https://www.assembly.ca.gov/legislativedeadlines A selection of key dates are provided below.
December 7: Members sworn-in
January 4: Legislature reconvenes
January 10: Budget must be submitted by Governor
January 22: Last day to submit bill requests to the Office of Legislative Counsel
February 19: Last day for bills to be introduced
March 25 to April 5: Spring Recess
April 30: Last day for policy committees to report bills to the fiscal committee
May 7: Last day for policy committees to report non-fiscal bills to the floor
May 25: Last day for fiscal committees to report fiscal bills to the floor
Exploring Careers in Economics: Federal Reserve Governor Lael Brainard spoke at the "Exploring Careers in Economics" event sponsored by the US Federal Reserve Board. https://www.federalreserve.gov/newsevents/speech/brainard20201117a.htm
“Economics can give you a powerful framework to explore the questions that matter most to you. Let me give a few examples of some important questions and the economic practitioners who made a big impact in addressing them.
So here's one: How can we help protect working women and men and their families from the financial devastation of job loss due to forces beyond their control? Frances Perkins first began thinking about that question as a young White girl in the manufacturing hub of Worcester, Massachusetts in the 1880s. When Frances asked her father why nice people could fall into poverty, he replied that this was a question little girls should not concern themselves with. Fortunately, Frances did not listen to him. In college, Perkins took an economics class where she started exploring the impact of rapid industrialization on the lives of working people. Her professor encouraged students to visit local factories to see firsthand some of the brutal working conditions facing women and children. That early field research sparked Perkins' determination to bring about improved working conditions and established her careful attention to gathering data.
Perkins went on to become a key author of the New Deal, and served as Labor Secretary for a record 12 years, despite considerable opposition to the appointment of the first woman Cabinet secretary. She persuaded Roosevelt to put in place a system of unemployment insurance and built the Labor Department's capability to compile the necessary employment statistics. She worked hard to secure legislation codifying core labor rights, and she played a key role in designing and implementing Social Security.”
Cal/OSHA Training Academy: The California Labor and Workforce Agency announced that Cal/OSHA Training Academy is offering courses for employers and workers. https://trainingacademy.dir.ca.gov/page/on-demand-training-covid19 Through the Cal/OSHA Training academy, employers and workers can access online training courses, current guidance documents, as well as videos and other materials related to occupational safety and workplace safety.
Interagency Groups Will Meet on Veterans Small Business Issues: The US Small Business Administration announced that the Interagency Task Force on Veterans Small Business Development will meet on December 2, 2020, at 1:00 to 3:30 pm, and the Advisory Committee on Veterans Business Affairs (ACVBA) will meet on December 3, 2020, from 9:00 am to 3:30 pm. Both meetings can be accessed online. https://www.sba.gov/article/2020/nov/16/sba-veterans-small-business-advisory-committees-host-virtual-public-meetings-dec-2-3
GOOD NEWS FOR SMALL BUSINESS FRIENDS
Tracy Stanhoff: The Southern California Minority Supplier Development Council is honoring Tracy Stanoff with the 2020 Progressive Leader Award. https://www.scmsdc.org/events She will receive her award at the SCMSDC’s 36th Annual Leadership Excellence Awards, which is being held on November 19, 2020. Tracy is the President of the American Indian Chamber of Commerce of California. Earlier this year, Tracy received the 2020 District Director’s Award for the Orange County and Inland Empire SBA District.
Pamela Haynes and Amy Costa: The California Community Colleges Board of Governors announced the election of Pamela Haynes to the position of board president, and Amy Costa was selected to serve as vice president. https://www.cccco.edu/About-Us/News-and-Media/Press-Releases/2020-BOG-ELECTIONS-PR According to the announcement, “Haynes is the first African American to lead the governing board of the nation’s largest system of higher education, and this is the first time two women will serve as president and vice president.”
DATA, SURVEYS, AND ANALYSES
State Unemployment Benefit Data: The Employment Development Department (EDD) released new unemployment insurance data for California on October 31, 2020. https://www.edd.ca.gov/newsroom.htm Among other information, the weekly Unemployment Benefits report for the period prior to the shutdown states:
39,987 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims were filed for the week ending October 31, 2020.
Over 10 million initial unemployment benefit claims have been filed with EDD between March 14 and October 31, 2020.
$109 billion has been paid to out-of-work Californians since the start of the pandemic. https://www.edd.ca.gov/About_EDD/pdf/news-20-61.pdf
Impact of COVID-19 on City Revenues: The California State Auditor has issued a report, Impact of COVID-19 on City Revenues. https://auditor.ca.gov/local_high_risk/covid-19/process_methodology.html The report found that nearly all cities in California were impacted to some degree. Localities which had the highest percentage of their total revenues coming from sales and use taxes and business license fees were the least effected. Communities which relied on hotel and tourism related fees were significantly impacted.
2020 Distressed Communities Index and Report: The Economic Innovation Group released its 2020 Distressed Communities Index (digital interactive map) and a related report, The Spaces Between Us: The Evolution of American Communities in the New Century. https://eig.org/dci The report analyses neighborhood-level well-being using a racial equity lens. According to the announcement, the report found that:
50.5 million people in the US live in distressed communities, and 56% of these individuals are people of color.
The population living in prosperous zip codes doubled between 2000 and 2018, as low-income neighborhoods became more isolated. This was especially true in Western states.
Nearly one-quarter of working adults who live in distressed zip codes were employed in services sectors, which have now become the frontline workers of the COVID-19 pandemic.
GRANTS
FY 2019 EDA Disaster Supplemental Funding: The US Department of Commerce announced the availability of $587 million in supplemental disaster funding. https://www.grants.gov/web/grants/view-opportunity.html?oppId=319126 There is a match requirement and funds can be used to help communities implement long-term economic recovery strategies from disaster that occurred in 2018 and 2019, as specified. Accommodation-related taxes were reported to be down 66%, while sales tax was down 12% and business license fees were down 6%. Eleven cities are identified as needing to severely cut services due to reduced revenues and 21 cities are cited as having sufficient reserves to weather this economic downturn.
CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS
[This is a “quick-source” section that includes new and previously provided information.]
Blueprint for a Safer Economy: Businesses can check out the status of the reopening of their county through the Blueprint for a Safer Economy (https://covid19.ca.gov/safer-economy/). This is the state’s four tier reopening plan. Tier 1 (purple) has the most restrictions and Tier 4 (yellow) has the fewest.
Most Recent Tier Assignment Changes (11/16)* | |
Back to Purple from Red | Contra Costa • Fresno • Glenn • Kern • Kings • Mendocino • Merced • Orange • Placer • San Benito • San Joaquin • San Luis Obispo • Santa Barbara • Santa Cruz • Solano • Stanislaus • Sutter • Ventura • Yolo • Yuba |
Back to Purple from Orange | Alameda • Butte • El Dorado • Napa • Nevada • Santa Clara • Siskiyou • Trinity • Tuolumne |
Back to Red from Orange | Colusa • Del Norte • Marin • Modoc • Mono • Plumas • San Mateo |
Back to Red from Yellow | Humboldt • San Francisco |
Back to Orange from Yellow | Calaveras • Sierra |
*Tier assignments may occur any day of the week and may occur more than once a week when CDPH determines that the most recent reliable data indicate that immediate action is needed to address COVID-19 transmission in a county. |
California Blueprint Data Chart (excel): https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/COVID19CountyMonitoringOverview.aspx
List of Activities Authorized Under Each Tier: https://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID-19/Dimmer-Framework-September_2020.pdf
Equity Metric Added to Blueprint for Re-Opening: The Blueprint for a Safer Economy was expanded on October 6, 2020, to include a health equity metric. This information will be used in combination with the county’s case rate and test positivity rates to determine a county's tier. https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/CaliforniaHealthEquityMetric.aspx The purpose of this new metric reflects the disproportionate impact COVID-19 has had on certain population groups, including rates of hospitalizations and death.
Updated Stay-at Home Order: https://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID-19/8-28-20_Order-Plan-Reducing-COVID19-Adjusting-Permitted-Sectors-Signed.pdf
Updated Industry Guidance: https://covid19.ca.gov/industry-guidance/
Travel Advisory Issued: Governor Newsom joined with the Governors of Oregon and Washington in issuing travel advisories urging visitors entering their states or returning home from travel outside these states to self-quarantine to slow the spread of the virus. https://www.gov.ca.gov/2020/11/13/california-oregon-washington-issue-travel-advisories/ The travel advisories also ask residents to delay non-essential out-of-state travel, limit interactions to those in your immediate household, and to self-quarantine for 14 days after arriving from another state or country.
Shop Safe Shop Local: GO-Biz is leading a campaign to remind Californians to shop local and help small businesses prepare for the business realities of COVID-19. The #ShopSafeShopLocal website highlights free / discounted resources to help small businesses get digital, find e-commerce tools, learn more about industry guidance, locate small business centers, and access PPE. https://business.ca.gov/shopsafeshoplocal/
Safely Making Web Platform: California manufacturers who produce PPE, including face masks and gloves, can advertise their wares on https://www.safelymakingca.org/. The website is a joint effort by the California Manufacturers and Technology Association (CMTA) and the State of California. A manufacturer does not have to be a member of CMTA to participate. To apply, manufacturers should complete this form. At his September 9, 2020, press conference, Governor Newsom announced that the web platform currently included 450 California manufacturers.
STATUS REPORTS ON SMALL BUSINESS LENDING
[This is a “quick-source” section that includes new and previously provided information.]
Reduction in Reporting Requirements: The US Congress enacted the Reinvigorating Lending for the Future Act of 2020 (S 7045), which reforms the Economic Development Administration’s Revolving Loan Fund (RLF) program by eliminating the requirement for reporting "in perpetuity" and, instead, releasing the federal interest in EDA RLFs after seven years.
COVID-19 Main Street Lending Program: The Federal Reserve issued its required report to the US Congress on the activities of the Main Street Lending Program. As of October 31, 2020 (issued 11/9/2020), the total outstanding amount of loans was $3.9 billion with total value of the collateral pledged being $41.4 billion. https://www.federalreserve.gov/publications/files/pdcf-mmlf-cpff-pmccf-smccf-talf-mlf-ppplf-msnlf-mself-msplf-nonlf-noelf-11-9-20.pdf#page=7
Program Changes: The Federal Reserve Board adjusted the terms of the Main Street Lending Program in order to support smaller businesses and nonprofits to utilize the program. The changes include reducing the minimum loan size from $250,000 to $100,000 and lowering the fees. https://www.federalreserve.gov/newsevents/pressreleases/monetary20201030a.htm
FAQ: The Federal Reserve Board and the US Treasury Department issued a new FAQ, which clarifies the conditions under which a Paycheck Protection Program loan of up to $2 million may be excluded for purposes of determining the maximum loan size under the Main Street Lending Program. https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20201030a6.pdf
COVID-19 Payment Protection Program: This program is closed to new applicants. As of August 8, 5.2 million PPP loans have been approved in the US for a total of $525 billion. In California, 623,360 PPP loans have been approved for a total of $68.6 billion: https://www.sba.gov/sites/default/files/2020-08/PPP_Report%20-%202020-08-10.pdf FAQ on New Loan Forgiveness Provisions: https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-FAQs.pdf Fact Sheet on PPP Loan Forgiveness: https://www.sba.gov/document/support-ppp-forgiveness-factsheet
COVID-19 EIDL Aggregate-Level Data Update: The US Small Business Administration released program utilization information for the COVID-19 Economic Injury Disaster Loan (EIDL). As of October 19, over 3.6 million EIDL loans have been approved in the US for a total of $191.9 billion. In California, 549,758 EIDL loans have been approved for a total of $34.1 billion. Link to a PowerPoint displaying data for loan activity through 10/19/2020: https://www.sba.gov/document/report-covid-19-eidl-loans-report-10-19-20.
CA Small Business Loans Addressing the Wildfires: The Governor’s Office of Emergency Services received updates from the US Small Business Administration on small businesses that are utilizing the Economic Injury Disaster Loan and Home Loans.
(4558-DR-CA) Wildfire - SBA Disaster Assistance (11/18) | |
CA Loans (EIDL) Approved | 34 |
Dollar Amount of CA Loans (EIDL) Approved | $3,275,500 |
CA Home Loans Approved | 362 |
Dollar Amount of CA Home Loans Approved | $43,553,000 |
Total Dollars Approved | $45,840,600 |
(4569-DR-CA) Wildfire - SBA Disaster Assistance (11/18) | |
CA Loans (EIDL) Approved | 1 |
Dollar Amount of CA Loans (EIDL) Approved | $5,900 |
CA Home Loans Approved | 41 |
Dollar Amount of CA Home Loans Approved | $5,227,600 |
Total Dollars Approved | $5,283,50 |
Small Business Disaster Loan Guarantee Program: The Small Business Finance Center at the California Infrastructure and Economic Development Bank administers a credit enhancement (loan guarantee) as a way to encourage traditional and mission-driven lenders to loan money to small businesses who have been impacted by a disaster. Below is the most recent program activity.
State Small Business Disaster Loan Guarantee Program (October 2020) | |||||
Conditionally Approved | Loan Amount | Guarantee Amount | Amount Encumbered | Employees | |
Total | 658 | $21,933,818 | $20,721,496 | $10,360,748 | 3140 |
The IBank provides the Joint Legislative Budget Committee an update monthly |
SBA Weekly Lending Report on Race and Ethnicity of Clients: The US Small Business Administration’s most recent weekly lending report for its core SBA products is for the week ending November 13, 2020. Information includes race, ethnicity, gender, and veteran participation in the SBA 7(a), 504, and Advantage Loan Programs. https://www.sba.gov/document/report-2020-weekly-lending-reports
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 December 8. 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 (11/18) | |
Meals served as of 11/15 | 16,655,033 |
Individuals Served This Week as of 11/15 | 55,467 |
Food Providers Contracted as of 11/15 | 795 |
Data received from Great Plates Data Portal updated on Sundays |
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. As of October 21, 331,492 individuals have been waiting more than 21 days for an initial payment. Updates are available through EDD’s new:
Unemployment Initial Claims Backlog Dashboard: Reflects applications for benefits that take more than 21 days to issue a first payment or to disqualify the individual.
Unemployment Continued Claims Backlog Dashboard: Reflects individuals who 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.
COMMEMORATING SMALL BUSINESSES, WORKERS, AND INCLUSIVE ECONOMIC PROSPERITY
[This is a “quick-source” section that includes new and previously provided information.]
November is Native American Heritage Month: The US celebrates Native American Heritage Month in November. There are many ways to support our Native American entrepreneurs. https://www.nativeamericanheritagemonth.gov #BuyIndian
California is home to the largest number of people of Native American heritage than any other state in the US.
There are over 100 federally recognized tribes in California. Each tribe is a sovereign nation.
The Office of the Tribal Advisor is located within the Governor’s Office and was established by Executive Order B-10-11 in 2011 and later codified in 2018 (AB 880 (Gray), Chapter 801, Statutes of 2018). https://tribalaffairs.ca.gov/
The California Native American Heritage Commission was established through legislation in 1976 (Chapter 1332, Statutes of 1976). http://nahc.ca.gov/
California is also accepting pre-orders for “Protect Native Culture” car plates.
Global Entrepreneurship Week is November 16 to 22: Global Entrepreneurship Week (GEW) is November 16 to 22 with 35,000 events already planned in over 170 countries. https://www.genglobal.org/gew?utm_medium=email&_hsmi=97527656&_hsenc=p2ANqtz-8ctE4eMzc7DNzON1ehOml1xcC8xdXBg6ycTvdTDpfvWGR7pjI0DuaTHMzC0cEnfE7ocxRNPXy34lHnZLjQVvKThyHqpA&utm_content=97527656&utm_source=hs_email The GEW was founded in 2008 to serve as a catalyst for local, regional, and national events that empower entrepreneurs and strengthen communities.
There are four themes for GEW 2020: Ecosystems, Education, Inclusion and Policy.
California State University Sacramento is hosting several events. https://www.csus.edu/center/carlsen/global-entrepreneurship-week/ This includes several online events: Global Perspectives: How to advocate for improving Global Entrepreneurship Networks; Culture, Community and Entrepreneurship Panel Discussion; and SBDC – Your Journey as an Entrepreneur.
Small Business Saturday: Many communities and businesses in the US and UK celebrate November 24, 2020, as Small Business Saturday. California Office of the Small Business Advocate (OSBA) and many stakeholder groups are helping businesses to prepare for Small Business Saturday and the holiday shopping season. Below are examples of a few of those activities.
Digital Pop-Up Festival and E-Commerce Bootcamps: The California Office of the Small Business Advocate (OSBA) is using their Get Digital CA! website to support Small Business Saturday and shopping at local small businesses throughout the holiday season. The website includes continually updated information and links to partner-hosted digital bootcamps; the Technology Learning Center; and discounts, free tools, and resources in the Shop Safe Shop Local website. The GO-Biz website will be updated with the festival information on Nov 19 and Dec 9-11.
Holiday Gift Guides:
Small Business Majority announced they will be launching a Holiday Gift Guide in time for Small Business Saturday. Inclusion in the Holiday Gift Guide is free to qualifying small businesses. Approved applicants will be featured on Small Business Majority’s website from November 16, 2020 - January 1, 2021 and will also receive a toolkit to help participating small businesses to share the Holiday Gift Guide with their customers. https://go.smallbusinessmajority.org/l/229072/2020-10-13/9w1wn In order to be considered, a small business must: apply by November 9, 2020; have less than 100 employees; be located in the US; have a website where people can find information about their products or services; and have a “giftable” product or service, including gift cards.
The Inland Empire Chamber of Commerce announced that Spectrum Reach is promoting a nationwide campaign to encourage consumers to support local businesses during the upcoming holiday season. Spectrum Reach will be creating an interactive online directory to help people identify local businesses. Participation is free. https://www.rebuildmytown.com/supportlocal/socal-inland?utm_source=inland_empire_business_journal&utm_medium=affiliate&utm_content=mosaic_phase1_socal_email&utm_campaign=80002020q4locmosaicp1 According to the announcement, Spectrum Reach will support this campaign with more than $1M in advertising nationwide.
REDF is already hosting a Social Enterprise Gift Guide for products produced from around the US, including the Homeless Garden Project in Santa Cruz and Vena Vena Handcrafted, which was launched from a homeless shelter in downtown LA.. http://socialenterprisegiftguide.com/
The American Express Small Business Saturday website has many resources for Community Champions (https://www.americanexpress.com/us/small-business/shop-small/neighborhoodchampions/?linknav=us-loy-nav-neighborhoodchampions), as well as small businesses (https://www.americanexpress.com/us/small-business/shop-small/smallbusinessowners/?linknav=us-loy-nav-smallbusinessowners).
SBA Small Business Saturday Social Media Resources: https://www.sba.gov/document/support-small-business-saturday-social-media-materials