JEDE COVID-19 Update for July 17, 2020

MAJOR ANNOUNCEMENTS

• Distance Learning for the Fall:  Governor Newsom shared his plan for learning and safe schools (https://www.gov.ca.gov/2020/07/17/governor-gavin-newsom-lays-out-pandemic-plan-for-learning-and-safe-schools/), as the California Department of Public Health issued a framework for when and how schools should reopen for in-person instruction (https://files.covid19.ca.gov/pdf/guidance-schools.pdf).  The Governor’s Slide Deck is attached.  The Governor’s plan centers on five key areas:

  1. Safe in-person school based on local health data.  Link to County Monitoring List at https://covid19.ca.gov/roadmap-counties/#track-data

  2. Strong mask requirements for anyone at school

  3. Physical distancing requirements & other adaptations

  4. Regular testing and dedicated contact tracing for outbreaks at schools

  5. Rigorous distance learning

• Apply for Economic Impact Payments:  The IRS announced that there is still time to apply for Economic Impact Payments.  While a majority of the payments were made electronically, individuals who do not file income taxes need to take an extra step in order to receive their Economic Impact Payment of $1,200 or more.  Possible non-filer groups include: lower-income households without a filing requirement; individuals with income below $12,200; married couples with income below $24,400; part-time workers; self-employed individuals; and students who can’t be claimed as dependents on someone else’s tax return. These individuals must file with the IRS before the October 15, 2020.    https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

• The Need for Equitable Economic Revitalization:  California Forward released its economic revitalization plan, The Need for Equitable Economic Revitalization - A Proposal for Integrated Economic  Stimulus.  “Now is not the time to lean in on default policies that will continue to exacerbate the inequities magnified by the pandemic. Instead we must reimagine an economic renewal that will stimulate a resilient, equitable and sustainable economy,” said Micah Weinberg, CEO of California Forward.  If California is to have an equitable recovery, the action plan calls for policy makers to rapidly deploy resources and investments that both meet the immediate needs of those most severely impacted by the pandemic and correct the long-standing lack of investment in lower income neighborhoods that helped create the deep inequities seen today.  https://caeconomy.org/reporting/entry/an-action-plan-for-equitable-economic-revitalization

• The Minority Wealth Commission Launches Fund:  The Minority Wealth Commission announced the launch of the FVLCRUM Fund with initial capital commitments of $50 million. The Minority Wealth Commission is a bi-partisan National Commission of diverse leaders representing a cross section of capital funding, procurement/contracting, economic development, and corporate/nonprofit leadership focused on minority businesses.  The FVLCRUM Fund has a goal of raising $250 million to invest as a combination of equity and debt capital into proven, high-growth enterprises operated by people of color.  According to the announcement, the FVLCRUM Fund is being formed by and will be managed with the assistance of Clearinghouse CDFI, a national community development financial institution with a strong history of lending in communities of color.  https://finance.yahoo.com/news/minority-wealth-commission-announces-250-130000185.html

• College Facility Study:  The CSU has released its study to assess the ability of both existing campuses and off-campus centers of the CSU system to accommodate future need for higher education and to determine the associated location and potential costs of expanded or new CSU facilities to accommodate that need.  https://static1.squarespace.com/static/5e277d918e0b1b2209002242/t/5eff6372648e2f5a443c743e/1593795504608/csu-capacity-assessment.pdf

• RFI for Community Advantage Loan: The SBA published a request for information (RFI) and a notice on the establishment of a new community advantage (CA) loan in response to the coronavirus pandemic. The new Community Advantage Recovery Loans will support eligible CA lenders to provide technical and financial assistance to small businesses in underserved areas.  The SBA-guaranteed loans will be available through Sept. 27, 2020, with funding fully disbursed by Oct. 1, 2020. Comments on the new loan program are due Aug. 14.  https://www.regulations.gov/document?D=SBA-2020-0041-0001&utm_medium=email&utm_source=govdelivery

• Supply Chain Human Rights Advisory:  The Department of Commerce, along with the Departments of State, the Treasury, and Homeland Security, issued a business advisory to highlight risks and considerations for businesses with supply chain exposure to entities engaged in forced labor and other human rights abuses in the Xinjiang Uighur Autonomous Region in the People’s Republic of China.  https://www.commerce.gov/news/press-releases/2020/07/commerce-releases-xinjiang-supply-chain-business-advisory

GRANTS

• CA Grant Portal:  The California State Library announced the launch of www.grants.ca.gov, the California Grants Portal.  The development of this site was mandated by AB 2252 (Limón), Chapter 318, Statutes of 2018.

• Social Enterprise Grants Program:  The 2020 BSEL Social Enterprise Grants Program helps nonprofit organizations that operate social enterprises in Southern California. The deadline is August 3, 2020, and decisions will be public by August 14, 2020.  https://www.academies-se.org/social-enterprise-grants-program 

• Open for Business Fund:  Wells Fargo launches a $400 million Open for Business Fund. The initial $28 million in grants will be awarded to CDFIs who can demonstrate an ability to support Black and African American-owned small businesses. The deadline to apply is August 7, 2020.  https://www.cybergrants.com/pls/cybergrants/ao_login.login?x_gm_id=1958&x_proposal_type_id=67066

• Schedule of Grant Announcements:  The California Department of Housing and Community Development released a calendar of RFP announcements for approximately $2 billion in new state and federal funding through more than 20 existing grant and loan programs, including new resources to help California respond to and recover from COVID-19.  https://www.hcd.ca.gov/grants-funding/nofas.shtml

DATA, SURVEYS, AND ANALYSES

• State Unemployment Insurance Numbers Released:  EDD released unemployment insurance data for California for the week ending July 11.  https://edd.ca.gov/About_EDD/pdf/news-20-33.pdf   Among other information, the weekly UI report stated:

  • 289,015 UI and Pandemic Unemployment Assistance (PUA) claims were filed for the week ending July 11

  • Between March 14 and week of July 11, 6.7 million UI and PAU claims have been filed with EDD

  • $45.6 billion has been paid to out-of-work Californians since start of pandemic

• June Unemployment Numbers for States:  The US Bureau of Labor Statistics released state unemployment figures for June 2020.  Employment was lower in 42 states, higher in 5 states, and stable in 3 states and the District of Columbia.  The national unemployment rate declined by 2.2% over the month to 11.1%.  Massachusetts had the highest unemployment rate in June 2020 (17.4%), followed by New Jersey (16.6%), and New York (15.7%).  California unemployment in June 2020 was reported as 14.9%. 

  • National and 50 State Data:  https://www.bls.gov/news.release/laus.nr0.htm

  • California Data from EDD:  https://edd.ca.gov/Newsroom/unemployment-july-2020.htm

• Rapid Recovery in Third Quarter Forecast:  The Congressional Budget Office (CBO) released an update to the Economic Outlook, which will form the baseline data for the 2020 to 2030 federal budget revenue projections.  According to the CBO report, if current laws governing federal taxes and spending generally remain in place, the economy will grow rapidly during the third quarter of this year with GDP expected to grow at a 12.4% annual rate in the second half of 2020 and to recover to its pre-pandemic level by the middle of 2022.  The unemployment rate is projected to peak at over 14% in the third quarter of this year and then to fall quickly as output increases in the second half of 2020 and throughout 2021.  The CBO reports that one of the significant factors impacting the recovery is how the pandemic and social distancing unfold.   https://www.cbo.gov/system/files/2020-07/56442-CBO-update-economic-outlook.pdf

• Industrial Production:  The Federal Reserve Board released industrial production and capacity data for June 2020.  According to the release, total industrial production rose 5.4% in June, down -10.9% from its pre-pandemic February level. As a whole, the index fell 42.6% in the second quarter.  This was the largest quarterly decrease since the industrial sector scaled down after World War II.  Manufacturing output increased by 7.2% in June, as all major industries posted increases. The largest gain (105.0%) was reported for the motor vehicles and parts subsector.  https://www.federalreserve.gov/releases/g17/current/default.htm

• National Loan Guarantee Program Feasibility Assessment:   The Council of Development Finance Agencies announced it will be assessing market demand and feasibility of a national loan guarantee program that could serve communities of color affected by COVID-19.  The study is being undertaken through a $145,000 grant from the Robert Wood Johnson Foundation.  https://www.cdfa.net/cdfa/cdfaweb.nsf/pages/42058/$file/CDFA%20Receives%20Grant%20from%20Robert%20Wood%20Johnson%20Foundation%20to%20Unlock%20Lending%20for%20Communities%20of%20Color.pdf

• OneRD Guarantee Loan Initiative:  The US Department of Agriculture has opened a public comment period on a series of regulatory reforms known collectively as the OneRD Guarantee Loan Initiative. Under the initiative, the agency proposes to eliminate duplicative processes and launch a single platform for four loan programs.  The loan programs include: Water and Waste Disposal Loan Guarantees Program; Community Facilities Guaranteed Loan Program; Business and Industry Guaranteed Loan Program; and the Rural Energy for America Guaranteed Loan Program.  https://www.rd.usda.gov/onerdguarantee

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

• Main Street Lending Program:  The Federal Reserve Board further modified the Main Street Lending Program in an attempt to provide greater access to credit for nonprofit organizations such as educational institutions, hospitals, and social service organizations. Among other actions, the Board approved two new loan options for nonprofit organizations that were in sound financial condition prior to the pandemic.

  • Announcement:  https://www.federalreserve.gov/newsevents/pressreleases/monetary20200717a.htm

  • Term Sheet for the Nonprofit Organization Expanded Loan Facility:  https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200717a1.pdf

  • Term Sheet for the Nonprofit Organization New Loan Facility:  https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200717a2.pdf

• $3.5 Billion in NMTC Awarded:  The Community Development Financial Institutions Fund (CDFI Fund), located within the US Department of the Treasury, announced the awarding of $3.5 billion in New Markets Tax Credits (NMTC) to 76 community development entities and community development financial institutions.  These awards will support the raising of investment capital which will be deployed in low-income urban and rural communities nationwide.  Today’s announcement brings the total amount awarded through the NMTC Program to $61 billion.  https://www.cdfifund.gov/Documents/2019%20NMTC%20Award%20Book%20FINALforWEBSITE%2013JULY2020.pdf

• Wondering Why Your Tax Credit Advance Payment is Delayed?  IRS is sending letters to those experiencing a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19.  According to the announcement, the taxpayer will receive letter 6312 if the IRS either rejected Form 7200 or made a change to the requested amount of advance payment due to a computation error.  The letter will explain the reason for the rejection or, if the amount is adjusted, the new payment amount will be listed on the letter.  A taxpayer will receive letter 6313 if the IRS needs written verification from a taxpayer that the address listed on their Form 7200 is the current mailing address for their business.

  • Announcement:  https://www.irs.gov/newsroom/irs-is-sending-letters-to-those-experiencing-a-delay-with-advance-payment-of-employer-credits

  • Background on the New Employer Tax Credit Program:  https://www.irs.gov/coronavirus/new-employer-tax-credits

• Return to Work Guide:  California Manufacturing Network released a Return to Work Guide specially designed to serve as a comprehensive COVID-19 pandemic preparedness and response guide for manufacturers that includes information on: expanding/resuming operations; monitoring and detecting cases; accessing and the correct use of PPE; cleaning and disinfection; and procedures for 'suspected' infection.  The free guide also includes a comprehensive checklist that will help ensure your facility is safe.  https://offers.cmtc.com/return-to-work-guide?utm_campaign=Newsletter%202020&utm_medium=email&_hsmi=91380195&_hsenc=p2ANqtz--KUvLL6T6hei9mAfed_xD2yr4IKXRuWolFjUK1QkTYGemn1mVrUtznf7bzAZAifhKclIwED04DHQamO1yrgEHCiZOLvQ&utm_content=91380195&utm_source=hs_email

• Changes to the PPP Rules:  The Federal Reserve Board announced an extension of a rule change to the Small Business Administration's (SBA) Paycheck Protection Program (PPP). Like the earlier rule, the extension will temporarily modify the Board's rules so that certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses.  https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200715a.htm

• PPP Aggregate-Level Data Update:  The SBA released program utilization information for the Paycheck Protection Program.  As of July 10, 4.9 million PPP loans have been approved in the US for a total of $517.4 billion.  In California, 584,057 PPP loans have been approved for a total of $67.4 Billion.  Link to a PowerPoint displaying data for loan activity through 7/10/2020:  https://www.sba.gov/document/report-paycheck-protection-program-report-through-july-10-2020

• EIDL is Open – But the Advance is Closed:  The SBA announced the re-opening of the Economic Injury Disaster Loan (EIDL) application portal to all eligible small businesses, non-profits, and agricultural businesses impacted by COVID-19.  The funding for the agricultural advance money is fully subscribed.  https://www.sba.gov/funding-programs/disaster-assistance?utm_medium=email&utm_source=govdelivery

• EIDL Aggregate-Level Data Update:  The SBA released program utilization information for the Economic Injury Disaster Loan.  As of July 15, 2020, 2.6 million EIDL loans have been approved in the US for a total of $150.1 billion.  In California, 422,078 EIDL loans have been approved for a total of $27.8 billion.  Link to a PowerPoint displaying data for loan activity through 07/15/2020: https://www.sba.gov/sites/default/files/2020-07/EIDL%20COVID-19%20Loan%207.15.20.pdf

• SBA Weekly Lending Reports:  The US SBA released its weekly lending report for the week ending July 10, 2020.  The report includes information on the SBA 7(a), 504 and Advantage loan programs.  https://www.sba.gov/document/report-2020-weekly-lending-reports

• CA Small Business Loans:  The Governor’s Office of Emergency Services receives updates from the SBA on small businesses that are utilizing the two federal disaster loan programs, the Economic Injury Disaster Loan and Paycheck Protection Program.

• Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA just granted a 30-day extension to allow the program to continue to August 9.  As shown in the chart below, the demand for meals far exceeds the number of businesses under contract.  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