The JEDE COVID-19 Update for August 12, 2020

MAJOR ANNOUNCEMENTS

RECOVERY TOOL SPECIAL FEATURE:  INTERNATIONAL TRADE AND FOREIGN INVESTMENT

  • Virtual Trade Mission to Chile:  GO-Biz is hosting a virtual trade mission to Chile on August 18, 2020, featuring Chilean airport & civil aviation opportunities.  https://static.business.ca.gov/wp-content/uploads/2020/07/CA-Global-Connect-Chile.pdf  While there is a cost to participate in the virtual trade mission, certain California small businesses who are eligible to participate in the California State Trade Expansion Program (https://californiaexport.org/register/) can have these fees waived.   This trade mission is part of GO-Biz’ California Global Connect activities, including assistance with exporting, foreign investing, and international collaborations.  https://business.ca.gov/advantages/international-trade-and-investment/

  • Export Nation Podcast:  The US Commercial Service launched a new podcast series Export Nation.  The first episode, Women in Exporting, is now available.  https://exportnation.libsyn.com/

  • Conversation with Export-Import Bank Chair:  The Orange County Business Council hosted the President and Chair of US Export-Import Bank, Kimberly Reed. Among other topics, they discussed how the US Export-Import Bank helps businesses by financing the export of goods to foreign markets, including how their Transformational Exports Program can help businesses to compete with Chinese businesses.  https://vimeo.com/446586146

  • Public Comment Requested on Working Group Recommendations:  The Roundtable of Emerging Markets of the US Securities and Exchange Commission is soliciting public comments on Report on Protecting United States Investors from Significant Risks from Chinese Companies, prepared by the US President’s Working Group on Financial Markets.  Comments and other related information must be submitted to the Roundtable of Emerging Markets at EmergingMarkets@SEC.gov.  The report (https://home.treasury.gov/system/files/136/PWG-Report-on-Protecting-United-States-Investors-from-Significant-Risks-from-Chinese-Companies.pdf) makes five recommendations:

    • Enhance the listing standards of US exchanges to require access to work papers of the principal audit firm for the audit of the listed company or meet a modified related requirement.

    • Require enhanced and prominent issuer disclosures of the risks of investing in Non-Cooperating Jurisdictions.

    • Review the risk disclosures of registered funds that have exposure to issuers from Non-Cooperating Jurisdictions.

    • Encourage or require registered funds that track indexes to perform greater due diligence on an index and its index provider, prior to the selection of the index to implement a particular investment strategy or objective.

    • Issue guidance to investment advisers with respect to fiduciary obligations when considering investments in Non-Cooperating Jurisdictions, including China.

  • Women's Global Trade Empowerment Forum:  The US International Trade Administration is hosting a Women's Global Trade Empowerment Forum (Forum) focusing on North America trade opportunities.  There are four remaining virtual sessions, with the next session scheduled for August 28, 2020.  Even if not attending the formal program, the Forum website contains links to many resources.  https://www.trade.gov/womensglobaltradeempowermentforum

  • California Foreign Trade Zones:  California has 17 foreign trade zones, supporting business development in Inland California (Bakersfield, Victorville, Fresno and Palm Springs), as well as US border and coastal regions, including San Diego, Calexico, Los Angeles, Long Beach, Port Hueneme, San Francisco, and Eureka.  https://enforcement.trade.gov/ftzpage/letters/ftzlist-map.html 

  • International Marketing Reports:  The US Commercial Service publishes a number of international market reports that are available to assist small businesses in evaluating and penetrating foreign markets.  These reports provide important background when businesses utilize the US Commercial Service’s virtual trade promotion services (https://www.trade.gov/virtual-services), including information on how to identify foreign buyers and partners (https://www.trade.gov/find-buyers-and-partners).   Several of these reports, as described by the US Commercial Service, are provided below.

  • US Trade in Goods and Services:  The US Bureau of Economic Analysis released June 2020 data on US international trade in goods and services.  In June 2020, the US deficit decreased from $54.8 billion in May (revised) to $50.7 billion in June. The goods deficit decreased $4.0 billion in June to $72.2 billion. The services surplus increased $0.1 billion in June to $21.5 billion.  https://www.bea.gov/news/2020/us-international-trade-goods-and-services-june-2020

  • US Import and Export Price Index:  The US Bureau of Labor Statistics released import and export data for June 2020.  According to the report, the import price index continued to advance from its low mark in April 2020 (down -6.9% from the prior year) recording a 1.4% increase from May (-3.8% from the prior year).  Higher fuel prices (21.9%) accounted for this increase.  Prices for foods, feeds, and beverages were slightly down (0.1%), after increasing 2.3% in the previous month. The price index for US exports increased by 1.4% in June, which was the largest 1-month rise since a 1.5% increase in March 2011.  https://www.bls.gov/news.release/pdf/ximpim.pdf

  • Analysis of CA Trade Activity:  Beacon Economics 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-trade-report/   “Exports in June continued to be battered by unfavorable tariffs overseas, weaker than normal foreign demand, and by failure in the United States to suppress and contain the COVID-19 pandemic. Although June's numbers are an improvement over May's, Beacon Economics does expect the trade outlook to be plagued by the pandemic into next year."

GOOD NEWS ABOUT SMALL BUSINESS AND ECONOMIC DEVELOPMENT FRIENDS

  • GO-Biz Appointments:  Governor Newsom announced the appointment of Sam Nejabat of San Diego as senior business development specialist for the California Business Investment Services Program (CalBIS) at the Governor’s Office of Business and Economic Development. https://www.gov.ca.gov/2020/08/10/governor-newsom-announces-appointments-8-10-20/  Mr. Nejabat  will be joining GO-Biz on Wednesday, August 12, 2020 (today).   He will be physically based in San Diego and serve Imperial and San Diego Counties.  GO-Biz askes that all requests for CalBIS continue to go through the senior advisor, Kaina Pereira (kaina.pereira@gobiz.ca.gov).

  • Employment Training Panel Appointments:  The Governor has appointed Reginald R. Javier as executive director at the California Employment Training Panel. Javier has served as deputy executive officer at the San Bernardino County Economic Development Agency since 2016.  Peter Cooper has been reappointed assistant executive director of the California Employment Training Panel, where he has served in that position since 2012.  https://www.gov.ca.gov/2020/08/12/governor-newsom-announces-appointments-8-12-20/

DATA, SURVEYS, AND ANALYSES

  • COVID-19 Survey of Low Income Communities:  The Federal Reserve System conducted surveys in June and July to better understand the range of challenges facing under-resourced and low-income communities as an effect of the COVID-19 pandemic. These findings have been released in a new report, Perspectives from Main Street: The Impact of COVID-19 on Communities and the Entities Serving Them. https://www.frbatlanta.org/community-development/publications/national-covid-19-survey.aspx  The Federal Reserve is conducting another round of surveys, which can be accessed here: https://frb.co1.qualtrics.com/jfe/form/SV_6GsaPmfAY0sxNXv   It takes about 10 minutes to complete.

  • Disparities Among Unemployed Individuals:  Brookings Institute weekly selects a Chart of the Week.  This week’s selection is from ProPublica and features an interactive chart displaying national unemployment data, which allows the user to select for race/ethnicity, gender, age, education attainment, and income.  There is also an option to look at unemployment over the past six months or the past decade.  As an example, the national unemployment rate for June was 11%, but among African American women the rate was 14%, for all individuals earning less than $25,000 it was 24%, and among Latinos with a high school degree 16%.  The chart can provide useful information about targeting recovery initiatives.   https://projects.propublica.org/coronavirus-unemployment/?utm_campaign=Economic%20Studies&utm_medium=email&utm_content=93109485&utm_source=hs_email

  • State Unemployment Insurance Numbers Released:  EDD released unemployment insurance data for California for the week ending August 1.  https://www.edd.ca.gov/About_EDD/pdf/news-20-37.pdf  Among other information, the weekly UI report stated:

    • 399,335 UI and Pandemic Unemployment Assistance (PUA) claims were filed for the week ending August 1.

    • Between March 14 and August 1, 8 million UI and PAU claims were filed with EDD.

    • $59.8 billion has been paid to out-of-work Californians since start of pandemic.

  • National Unemployment Data Released:  The US Bureau of Labor Statistics released state unemployment figures for July 2020, showing total US nonfarm payroll employment rose by 1.8 million and the unemployment rate fell to 10.2%.  Notable job gains occurred in leisure and hospitality (1/3 of total increase), government, retail trade, professional and business services, other services, and health care. The labor force participation rate of 61.4% was substantially similar to June.  The number of persons not in the labor force who currently want a job declined by another 463,000 individuals in June, bringing the total number to 7.7 million individuals (2.8 million higher than in February.)  State-level data for July 2020 will be available on or around August 15 and the August 2020 data will be released September 6, 2020.

  • Household Pulse Survey:  The US Census Bureau released results from its weekly (July 16 through July 21) Household Pulse Survey.  Among other findings, the US Census reported: 

    • 58.6% of adults in California live in households which have experienced a loss in employment income.

    • 14.3% of Californians lived in households where there was either sometimes or often not enough to eat in the previous 7 days.

    • 41.2% of adults in California had delayed getting medical care in the previous 4 weeks.

  • Second Quarter GDP Estimate:  US Bureau of Economic Analysis released its advance estimate of second quarter real gross domestic product (GDP).  US GDP decreased at an annual rate of 32.9% in the second quarter of 2020, following a 5.0% decrease in GDP in the first quarter.  https://www.bea.gov/news/2020/gross-domestic-product-2nd-quarter-2020-advance-estimate-and-annual-update   The next estimate for the second quarter will be released on August 27, 2020.

GRANTS

  • Zero Emission Trucks:  The California Air Resources Board announced they will begin to accept applications on August 18, 2020, for $27 million that is to be used to replace higher polluting trucks with zero-emission vehicles. This funding is part of the $423 million the state received from the Volkswagen (VW) Environmental Mitigation Trust program.  In order to be eligible, the existing replacement vehicle must be a freight truck (including drayage), waste hauler, dump truck, or concrete mixer with an engine model year between 1992 and 2012.  Private and public entities that own and operate eligible vehicles in the state may apply.  https://xappprod.aqmd.gov/vw/  An applicant webinar is scheduled for Wednesday, August 12, 2020, at 10 am  http://learn.aqmd.gov/VW_Settlement_Webinar_Registration?utm_medium=email&utm_source=govdelivery 

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

US Small Business Administration Disaster Assistance
CA Loans (EIDL) Approved (as of 7/27)
469,484
Dollar Amount of CA Loans (EIDL) Approved (as of 7/27)
$29,697,072,596
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 7/31)
608,970
Payment Protection Plan Approved (total) (as of 7/31)
$68,102,850,783
Great Plates Delivered (as of 8/10)
Meals served as of 8/10
6,293,435
Individuals Served This Week as of 8/10*
41,417
Food Providers Contracted as of 8/10*
712
*Data received from Great Plates Data Portal updated twice per week. 
 
 
 

 

 

 

 

 

Copyright © 2011 State of California