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Committee on Jobs, Economic Development, and the Economy

JEDE COVID-19 Midweek Update - September 30, 2020 Edition

MAJOR ANNOUNCEMENTS

  • California Fire Update:  The Governor’s Office of Emergency Services released the update below regarding the California Fire situation.

  • Nine Counties Move to Less Restrictive Measures:  Every Tuesday, the California Department of Public Health releases new COVID-19 data including the case rates and positivity rates.  This Tuesday, several Counties moved to less restrictive tiers:  Alameda, Calaveras, Contra Costa, Fresno, Sacramento, San Joaquin, Santa Barbara, Yolo, and El Dorado.

  • New Playground Guidance:  The California Department of Public Health released new guidance on outdoor playgrounds and other outdoor recreational facilities:  https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/Outdoor%20Playgrounds%20and%20other%20Outdoor%20Recreational%20Facilities.aspx

  • Equity Metric Added to Blueprint for Re-Opening:  The Blueprint for a Safer Economy has been expanded to include a health equity metric.  This information will be used in combination to 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 have had on certain population groups, including rates of hospitalizations ad death.  The health equity metric and requirements become effective October 6, 2020. 

  • New National Strategy on Financial Literacy:  The US Department of the Treasury released the 2020 National Strategy, which details the federal government’s financial literacy priorities and plan to collaborate with state, local, and tribal governments and the private sector to strengthen financial capability for all Americans.  According to the announcement, building Americans’ financial skills is essential to enabling a dynamic economy and to encouraging individuals to effectively manage financial challenges.  https://home.treasury.gov/system/files/136/US-National-Strategy-Financial-Literacy-2020.pdf

  • COVID-19 Funds on Federal High Risk List:  The California State Auditor announced that she will be adding the $71 billion California is receiving to address COVID-19 to the state’s oversight list for high risk funds.  The COVID-19 funds are being added to the high risk list, according the announcement, due to the significant amount of funding received by the state, the large number of eligible individuals who need to be served, and the speed in which the funds need to be expended.  http://auditor.ca.gov/reports/2020-602/index.html

  • Investment Capitol in Qualified Opportunity Funds:  Novogradac, a national professional services organization based in California, announced that their list of investment capital being held in qualified Opportunity Funds has reached $12.05 billion.  Some economic developers believe the amount of qualified investment capital is much higher.  A report by the White House Council of Economic Advisors (CEA), which used Novogradac data as a key factor, placed total investment at $75 billion.  https://www.benzinga.com/pressreleases/20/09/n17321855/novogradac-opportunity-fund-list-shows-nearly-2-billion-in-additional-investment

  • National Council for Expanding American Innovation:  The US Patent and Trademark Office is establishing the National Council for Expanding American Innovation for the purpose of expanding invention, innovation, and entrepreneurship in the US.  https://www.uspto.gov/about-us/news-updates/uspto-launches-national-council-expanding-american-innovation-nceai  The public is invited to submit ideas to the new council at NCEAI@uspto.gov. Additional information on the National Council, including a list of council members, is available at www.uspto.gov/ExpandingAmericanInnovation.

  • CA Company Relocates to Louisiana:  The Louisiana Governor announced that Westfield Hydraulics in Pacoima will be relocating to north Lafayette.  The company proposed to create 67 jobs at an average salary of just under $50,000.  Westfield Hydraulics is a leading provider of precision hydraulic and fluid control components for aerospace and defense applications. Among other factors in selecting Louisiana, according to the announcement, is the state’s membership in the Aerospace Alliance, which is comprised of four southeastern states who are committed to making the region a world class aerospace and aviation corridor.  https://www.opportunitylouisiana.com/led-news/news-releases/news/2020/09/10/westfield-fluid-controls-to-launch-manufacturing-facility-in-lafayette

CURRENT GUIDANCE ON COVID-19 AND FIRE RESPONSE AND RECOVERY ACTIONS

  • 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. 

    • List of Activities Authorized Under Each Tier: https://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID-19/Dimmer-Framework-August_2020.pdf 

    • 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/  This includes updated guidelines for nail salons.

    • 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 includes 450 California manufacturers.  

    • Individuals and Businesses Impacted by Fires:  The Employment Development Department is accepting Federal Disaster Unemployment Assistance applications for workers, business owners and self-employed individuals who lost their jobs or businesses or had their work hours substantially reduced as a result of the wildfires that began in several California counties on August 14, 2020.  https://www.edd.ca.gov/About_EDD/pdf/news-20-43.pdf   Individuals can receive up to $450 per week in benefits for a maximum period of 27 weeks.  Applications can be submitted through this webpage:  https://www.edd.ca.gov/unemployment/UI_Online.htm

    • SBA Fire Disaster Assistance:  The US Small Business Administration has opened a virtual Business Recovery Center and virtual Disaster Loan Outreach Center.  The centers are available Mondays – Fridays from 9:00 a.m. – 6:00 p.m. and can be accessed through this email (FOCWAssistance@sba.gov) or (916) 735-1500.  These services are only available for the California disaster declaration as a result of the wildfires that began Aug. 14, 2020, and not for COVID-19-related assistance.

FEDERAL AND STATE LEGISLATION RELATED TO COVID-19, MARCHES FOR SOCIAL JUSTICE, AND ECONOMIC RECOVERY

  • New US House of Representatives Stimulus Package:  The US House of Representatives Speaker Pelosi announced a revised $2.2 trillion stimulus package, down from the $3.4 billion the House passed in May, but higher than the $1 billion Senate Republicans have stated they may be able to support.  According to news reports, the revised House package includes the following:

    • A $600-per-week supplemental pandemic jobless benefit

    • A second round of $1,200 direct payments to most individuals

    • Scales back the aid package to state and local governments to $436 billion

    • Provides $225 billion to colleges and universities

    • Re-capitalizes the Paycheck Protection Program

  • 90% of Americans want Another Stimulus Package:  The Financial Times reports that “Americans are becoming increasingly pessimistic about the US economic rebound, with almost 90 per cent saying Washington needs to pass a new stimulus package to mitigate the fallout from the coronavirus pandemic.  The growing concern about the economy, detailed in a new poll of likely voters for the Financial Times, comes even as Americans increasingly believe the country has turned the corner after the spike of infections this summer, which forced several states to slam the brakes on reopening plans.”  https://www.ft.com/content/83d3b0dd-57a4-4458-80ec-96418abdc93e?emailId=5f69cad4cda7a00004d20d9f&segmentId=ce31c7f5-c2de-09db-abdc-f2fd624da608

  • Governor Newsom signed the following economic, business, and workforce development bills:

DATA, SURVEYS, AND ANALYSES

“Out of those surveyed, 74% of economists said the U.S. would be in a better economic position now if lockdowns had been more aggressive at the beginning of the crisis. Among that camp, the most commonly cited reason was that early control over the virus would have allowed a smoother and more comprehensive return to economic activity later on.… Proponents of tighter lockdowns pointed to Japan and various European countries (such as Germany, Norway and Denmark) as examples of how reducing the virus to extremely low levels early on allowed for a quicker recovery. Others noted that children could have returned to school for in-person learning faster with earlier control over the virus — a major consideration in maximizing the country’s economic power as it bounces back from the pandemic.”

  • CA Completing US Census:  The US Census Bureau maintains a website displaying information on each state’s progress in completing the 2020 census.  According to the website, as of September 29, California has completed Census forms from 99.4% of all households, with 30.2% of those households reporting through follow-up house-to-house canvassing by official census takers.  California ranked 18th among 50 states in the percentage of households who had responded.  https://2020census.gov/en/response-rates/nrfu.html?utm_campaign=20200920msc20s1ccallnl&utm_medium=email&utm_source=govdelivery   The 2020 Census will conclude data collection operations on October 30, 2020. 

  • State Unemployment Benefit Numbers Released:  EDD released unemployment insurance data for California for the week ending September 19.  https://www.edd.ca.gov/About_EDD/pdf/news-20-47.pdf Unemployment Benefits include Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU).  Among other information, the weekly Unemployment Benefits report stated:

    • 137,016 initial Unemployment Benefit claims were filed for the week ending September 19.

    • Between March 14 and September 19, EDD received 11 million Unemployment Benefit claims.

    • $90 billion has been paid to out-of-work Californians since the start of the pandemic.

  • National Unemployment Data Released:  The US Bureau of Labor Statistics released national unemployment figures for August 2020, showing total US nonfarm payroll employment rose by 1.4 million and the unemployment rate fell to 8.4%.  These numbers reflect 13.6 million unemployed people in the US with a labor participation rate of 61.7%.  The largest increase in employment was in the government sector, which accounted for one-fourth of the over-the-month gain in total nonfarm employment.  Among other data, August shows a significant drop in the number of individuals temporarily laid off (decrease of 3.1 million for a total of 6.2 million).  However, the number of individuals who permanently lost jobs increased by 534,000 for a total of 3.4 million.  For comparison, the number of individuals who have permanently lost jobs has risen by 2.1 million since February 2020.  California unemployment for August 2020 was 11.4%, down 2.1% from July 2020.  For yearly comparison, in August 2019, California unemployment was reported as 3.9%.   National data for September 2020 will be released Friday, October 2, 2020, and state-level data for September 2020 will be available on or after October 15.

GRANTS

  • Research Funding Awarded to UC Davis:  The University of California at Davis reports setting a new record for external research funding by receiving $941.2 million in awards in the fiscal year 2019-20.  This is a $94.5 million increase from the previous year.  https://www.ucdavis.edu/news/uc-davis-sets-record-941-million-research-funding

  • CDFI Bond Guarantee Program Brings New Money to CA:  The US Department of the Treasury's Community Development Financial Institutions Fund announced the approval of a $100 million guarantee under the fiscal year 2020 round of the Community Development Financial Institutions Bond Guarantee Program. The guarantee will be issued to the Community Reinvestment Fund, USA, on behalf of Clearinghouse Community Development Financial Institution, which is headquartered in Lake Forest, California.  Proceeds from the bond loan will be used to finance charter schools, commercial real estate, daycare centers, healthcare facilities, not-for-profit organizations, rental housing, senior living and long-term care, and small businesses in low-income communities in California, Arizona, Nevada, New Mexico, and in sovereign nations located within western North America.  https://www.cdfifund.gov/programs-training/Programs/cdfi-bond/Pages/default.aspx

  • Build to Scale Awards:  US Department of Commerce announced that 52 organizations from 36 states are receiving Build to Scale grants totaling $35 million to support entrepreneurship, acceleration of company growth, and increased access to risk capital across regional economies.   The 2020 awardees will leverage an additional $44 million in matching funds from a variety of private and public sector sources.  Awards are being made in three categories:  the Venture Challenge, the Capital Challenge, and the new Industry Challenge. 

    • California-based 2020 Venture Challenge Grant Recipients:  Starburst Accelerator, LLC, Los Angeles, California, $1.4 million

    • California-based 2020 Capital Challenge Grant Recipients:  None

    • 2020 Industry Challenge Grant Recipients:  University of California, San Diego, Scripps Institution of Oceanography, La Jolla, California, $328,542

  • Market Development Cooperator Program:  The US Department of Commerce announced the 2020 Market Development Cooperator Program (MDCP) awards to 10 nonprofits.  Awardees will be able to access $2.7 million in financial and technical assistance from the International Trade Administration (ITA) to support their work in reducing barriers to US products accessing in foreign markets.  To be eligible, each awardee has committed to invest at least $8.5 million of their own resources.  Of the 10 awardees, one is from California:  Specialty Equipment Market Association (Diamond Bar).  www.trade.gov/mdcp.

FALL IS CONFERENCE TIME

  • 2020 Space and Cybersecurity Symposium:  The California State University at San Luis Obispo is hosting the 2020 Space and Cybersecurity Symposium from October 5 to 8, 2020.  https://calpoly.events.cube365.net/media-hub/scs2020  The Space and Cybersecurity Symposium will feature keynote interviews and panel sessions with leaders from the US Space Force, industry, and higher education.  Among other important issues, speakers will be discussing workforce development, with Deputy Secretary Stewart Knox of the Labor Agency as one of the keynote speakers.  Registration is free and the convening is virtual.

  • CHCC Statewide Convention:  California Hispanic Chamber of Commerce is holding its annual statewide convention October 14 to 16, 2020.  This year’s theme is Momentum.  https://www.chcc2020.com/event/72c24571-abfd-4a8a-984d-c5e9466c5e6b/summary?environment=P2

  • California Retailers Annual Meeting:  The California Retailers Association is holding its annual meeting on October 23, 2020, beginning at 8:00 am.  The meeting will include the election of the association’s Board of Directors, a legislative and regulatory update, briefing on the November ballot initiatives, and a discussion of member priorities for the next legislative session.  https://calretailers.com/cra-annual-meeting-2020/

  • California Economic Summit:  California Forward announced the opening of registration for the 2020 California Economic Summit, which is the ninth annual gathering of private, public, and civic leaders dedicated to building an inclusive and sustainable economy.  The event will be 100% virtual with workshops and general sessions scheduled for December 3 and 4.  https://summit.caeconomy.org/registration

GOOD NEWS ABOUT SMALL BUSINESS AND ECONOMIC DEVELOPMENT FRIENDS

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

  • New CA Bear Graphic to Highlight Safe Shopping Guidance:  The California Retailer’s Association is using a California Bear with a mask to attract attention to pandemic-safe shopping guidelines.  https://calretailers.com/safe-shopping-for-all/

  • Public Safety and Infrastructure:  Southern California Edison has released a fast sheet on how businesses operate outdoors and within areas with electrical infrastructure, such as safe clearance from power lines and underground and pad-mounted equipment.   https://files.constantcontact.com/cba32e1d001/78849e41-d92e-42ab-a444-b47d684e640b.pdf

  • Get Digital California:  The California Office of the Small Business Advocate final Grow with Google webinar, Use YouTube to Grow Your Business, is on October 7, 2020 at 10:00 am.  This series of workshops is part of the Get Digital California (#GetDigitalCA) initiative.   Registration and more information are available at: https://register.gotowebinar.com/rt/3490778303472781327. 

  • New UI and PUA Claim Processing is on Hold:  The Employment Development Department (EDD) announced a two-week reset period (September 20 to October 4, 2020) on the processing of new unemployment insurance (UI) benefits, including the Pandemic Unemployment Assistance payments for independent contractors.  The processing hold comes as a result of a report released by a Strike Team deployed in July 2020 to review the EDD’s processes and identify improvements to address the historic claim volumes experienced during the pandemic.  This two-week reset will also allow EDD to reduce UI claim backlog.  The reset does not impact existing claimants from managing their UI Online account.  https://www.edd.ca.gov/Jobs_and_Training/pubs/wsin20-13.pdf

  • COVID-19 Main Street Lending Program: 

  • COVID-19 PPP Aggregate-Level Data Update:  The US Small Business Administration released program utilization information for the Paycheck Protection Program (PPP).  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.  This program is closed to new applicants.

  • COVID-19 EIDL Aggregate-Level Data Update:  The US Small Business Administration released program utilization information for the Economic Injury Disaster Loan (EIDL).  As of September 14, 3.5 million EIDL loans have been approved in the US for a total of $190 billion.  In California, 546,783 EIDL loans have been approved for a total of $33.9 billion.  Link to a PowerPoint displaying data for loan activity through 09/14/2020:  https://www.sba.gov/document/report-covid-19-eidl-loans-report-9-14-20   A new FAQ was issued on September 24, 2020 (https://www.sba.gov/document/support-faq-covid-19-economic-injury-disaster-loan-eidl).

  • CA Small Business Loans:  The Governor’s Office of Emergency Services received updates from the US Small Business Administration on small businesses that are utilizing the two federal disaster loan programs, the Economic Injury Disaster Loan and Paycheck Protection Program (closed to new applicants).

Wildfire - SBA Disaster Assistance
CA Loans (EIDL) Approved (as of 9/29)
12
Dollar Amount of CA Loans (EIDL) Approved (as of 9/29)
$784,300
CA Home Loans Approved (as of 9/29)
113
Dollar Amount of CA Home Loans Approved (as of 9/29)
$13,251,200
Total Dollars Approved (as of 9/29)
$14,035,500
COVID - SBA Disaster Assistance
CA Loans (EIDL) Approved (as of 8/15)
533,876
Dollar Amount of CA Loans (EIDL) Approved (as of 8/15)
$33,022,133,987
CA Loan Advances (EIDL) Approved (as of 7/15)
809,792
Dollar Amount of CA Loan Advances (EIDL) Approved (as of 7/15)
$2,666,662,000
Payment Protection Plan (as of 8/8)
5,212,128
Payment Protection Plan Approved (total) (as of 7/31)
$525,012,201,124
Great Plates Delivered
Meals served as of 9/21
10,722,176
Individuals Served This Week as of 9/21*
48,160
Food Providers Contracted as of 9/21*
755
*Data received from Great Plates Data Portal updated twice per week. 
 
 
 

 

 

 

 

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