Wear a Mask Public Awareness Campaign: Governor Newsom announced the launch of a “Wear A Mask” public awareness campaign, designed to encourage Californians to use face coverings. According to the announcement, the campaign is taking an aggressive approach to slowing the spread of COVID-19 and will continue until at least the end of the year. The campaign began just prior to the holiday weekend and included broadcast and radio PSAs in English and Spanish with local ABC, CBS, NBC, FOX, Univision, Telemundo, Ethnic Media Services, and iHeart Media affiliates. Billboards and outdoor advertisements in both English and Spanish were donated by ClearChannel, Lamar, VisCom Outdoor, iKahan Media, and LED Truck Media. In the coming weeks, the campaign increasingly will focus on population groups who have been disproportionately harmed by the pandemic. Messages will be translated into seven languages and delivered by trusted messengers. In addition, the Listos California emergency preparedness campaign will be supporting paid media efforts and bolstering community engagement efforts. https://www.gov.ca.gov/2020/07/02/governor-newsom-launches-wear-a-mask-public-awareness-campaign-in-response-to-surge-in-covid-19-cases/
“Today, the leadership of CalChamber members is needed more than ever. Together, California employers must work to end racial injustice and inequality not only in our workplaces but in the whole of society. CalChamber recognizes the realities of systemic racism and the role that skin color plays in denying equality and freedom. It is important that we all understand the importance of the Black Lives Matter movement because it highlights the worst consequences of racial injustice. CalChamber is asking all our members to identify and actively address the realities of bias in hiring, compensation, job assignments, staff management, performance reviews and promotions with a special emphasis on anti-black discrimination.”
Report to Congress on Taxpayer Challenges: The National Taxpayer Advocate Erin Collins released her first report to Congress, identifying taxpayer challenges arising from the COVID-19 pandemic, the CARES Act, and the IRS’s implementation of the Taxpayer First Act. The report also assesses the 2020 filing season, identifies other areas of focus, and includes the IRS’s responses to administrative recommendations proposed in the National Taxpayer Advocate’s 2019 annual report. https://taxpayeradvocate.irs.gov/ObjectivesReport2021 Among other information, the report praises the IRS for acting quickly to postpone over 300 filing, payment, and other time-sensitive deadlines and disburse 160 million Economic Impact Payments, but also notes the following:
Taxpayers who filed a 2019 paper return and were entitled to refunds are experiencing significant delays in receiving refunds. The IRS suspended processing of paper tax returns due to the closure of IRS offices. As of May 16, there was a backlog of 4.7 million paper returns. It is not clear when these returns will all be processed.
Individuals who did not receive some or all of their Economic Impact Payments may have to wait until next year to receive them. To date, the IRS has taken the position that most taxpayers who did not receive their full payments must wait until they file their 2020 income tax returns to claim the amounts as credits against their 2020 tax liabilities, even though there is no legal constraint on the IRS’s ability to issue additional EIP amounts as advance refunds during 2020.
Employers are struggling to determine whether they qualify for the Employee Retention Credit and in what amounts.
Businesses are facing challenges when seeking to utilize the CARES Act provision that authorizes the use of net operating losses to offset taxable income in prior years.
DISASTER- AND ECONOMIC JUSTICE-RELATED LEGISLATION
Extends FY2020 enacted levels through FY2021 for federal-aid highway, transit, and safety programs.
Reauthorizes for FY2022-25 several surface transportation programs, including the federal-aid highway, transit, highway safety, motor carrier safety, and rail programs.
Addresses climate change, including strategies to reduce the climate change impacts of the surface transportation system and conduct a vulnerability assessment to identify opportunities to enhance the resilience of the surface transportation system and ensure the efficient use of federal resources.
Revises Buy America procurement requirements for highways, mass transit, and rail.
Establishes a rebuild rural grant program to improve the safety, state of good repair, and connectivity of transportation infrastructure in rural communities.
Implements new safety requirements across all transportation modes.
Directs DOT to establish a pilot program to demonstrate a national motor vehicle per-mile user fee to restore and maintain the long-term solvency of the Highway Trust Fund and achieve and maintain a state of good repair in the surface transportation system.
RESTURANTS Act: H.R. 7197 – The Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive, also known as the RESTAURANTS Act of 2020, has been assigned to three policy committees for further action. The bill establishes a $120 billion restaurant stabilization grant program to assist local, independent restaurants who have been hard hit during the COVID-19 pandemic. https://www.congress.gov/bill/116th-congress/house-bill/7197?q=%7B%22search%22%3A%5B%22HR+7197%22%5D%7D&s=1&r=1
Sign-on Letter for NMTC: The New Markets Tax Credit (NMTC) Coalition is once again organizing a sign-on letter in support of an NMTC extension. This letter also calls for additional funds to communities to recover from the COVID crisis. https://nmtccoalition.org/sign-on-letters/
ECONOMIC RECOVERY
New Funding Round for California Competes Tax Credits: The first application period for the California Competes Tax Credit begins on July 27, with $80 million in tax credits available. The California Competes Tax Credit is a competitively bid business incentive that awards tax credits based on the business’ capital investments and new jobs. Starting July 27, the online application can be accessed at www.calcompetes.ca.gov.
California Latino Economic Roadmap: The California Latino Economic Institute released its California Latino Economic Roadmap (Roadmap), which lays the framework to ensure Latinos are not left behind in the state’s economic recovery as has been the case in prior economic down turns. In the Recession of 2008, Latino household wealth fell by 66% from 2005 to 2009 nationally. The Roadmap provides an overview of California’s Latino middle class and the impact COVID-19 has had on the Latino community in California. The roadmap then outlines intentional strategies to address the levels of inequalities within the following areas: Digital Divide, Education, Employment & Entrepreneurship, Energy, Healthcare, Housing, and Income. http://www.californialei.org/roadmap
Update from the Port of Stockton: California’s largest inland seaport, the Port of Stockton, is open and operating normally, according to port officials. “The Port of Stockton’s priority is to ensure the health and safety of all Port stakeholders; to date, the Port of Stockton’s ability to support our business partners has not been impacted by COVID-19,” says Port Director Richard Aschieris. https://www.portofstockton.com/
The Road to Recovery Runs Through Small Business: Ronda Abrams, small business advisor, released her list of seven strategies to help small businesses recession-proof their business. The seven strategies include: (1) get the word out to "shop small, shop local;" (2) stay agile, move fast; (3) start lean, stay lean; (4) figure out how you’ll "pivot;" (5) reduce the number of product or service offerings; (6) Be the less expensive alternative; and (7) develop counter-cyclical lines of business. This information originally appeared in her USDA Today Small Business Column and was redistributed through her email list. https://www.usatoday.com/story/money/columnist/2020/06/30/steps-small-businesses-can-take-avoid-coronavirus-extinction/3278572001/
Making Regional Planning Deliver for Inclusion and Equity
Best Practices for Business Resilience and Innovation Funds
Leveraging Regional Workforce Programs for Economic Recovery
Maximizing Regional Impact of Federal and State Funding
Effective Cross-Sector Collaboration on Economic Reopening
DATA, SURVEYS, AND ANALYSES
SBA Briefing on COVID-19 and Restaurants: The SBA Office of Small Business Advocacy released a report on the impact of the COVID-19 pandemic on restaurants and bars. According to the report, employment in the leisure and hospitality sector was down -41% in May 2020 compared to May 2019. Food services and drinking places represented the largest subcategory of businesses within the leisure and hospitality sector. Employment in May 2020 was down -37% from the reported employment in May 2019. Prior to the pandemic, small businesses accounted for 64% of employment in the leisure and hospitality subcategory. https://cdn.advocacy.sba.gov/wp-content/uploads/2020/06/29105857/Small-Business-Facts-Restaurants-And-Bars-Staggered-By-Pandemic.pdf
Analysis of CA Trade: Beacon Economic has released its monthly trade report for May 2020. Overall, the value of shipped merchandise was down -31.5% as compared to May 2019. While the decrease in trade volume and value was expected, California fared better than the US as a whole. Total US exports for May were down by -36.3% from one year ago. https://beaconecon.com/publications/california-trade-report/
Federal Employment Numbers Released: The US Department of Labor released June 2020 employment numbers, which showed that total nonfarm payroll employment rose by 4.8 million in June, and the national unemployment rate fell to 11.1%, a reduction of 2.2% over the prior month. The monthly report notes that while the unemployment fell in May and June, the jobless rate and the number of unemployed are actually up by 7.6 percentage points (12.0 million workers) since February. https://www.bls.gov/news.release/empsit.nr0.htm
For local governments to halt evictions for renters impacted by the COVID-19 pandemic.
To obtain marriage licenses via videoconferencing rather than in-person during the pandemic.
To waive eligibility re-determinations for Californians who participate in Medi-Cal, to ensure they maintain their health coverage.
To suspend face-to-face visits for eligibility for foster care.
For In-Home Supportive Services (IHSS) program caseworkers to continue caring for older adults and individuals with disabilities through video-conferencing assessments.
For waivers to temporarily broaden the capability of counties to enroll persons into the California Work Opportunity and Responsibility to Kids (CalWORKs) program, as specified.
To mail-in renewals of driver’s licenses and identification cards in order to limit in-person transactions at the Department of Motor Vehicles.
To extend timeframes related to the payment of real estate license application and renewal fees and continuing education requirements for licensees.
Rapid Response and Lay-Off Aversion Funding: The California Employment Development Department released information on the use of Rapid Response and Layoff Aversion fund allocations. These funds can only be used to defray the cost of required and allowable Rapid Response activities in response to layoffs, business closures, and natural disasters. https://edd.ca.gov/Jobs_and_Training/pubs/wsd16-04.pdf
Federal NOL Rules: The US Department of the Treasury and the IRS issued proposed regulations and temporary regulations that provide guidance for consolidated groups regarding net operating losses (NOLs). Both the Tax Cuts and Jobs Act (TCJA) and the CARES Act amended the rules for NOLs.
PPP Aggregate-Level Data Update: The SBA released program utilization information for the Payment Protection Program. As of June 30, 4.8 million PPP loans have been approved in the US for a total of $521.4 billion. In California, 581,140 PPP loans have been approved for a total of $68.2 billion. Link to a PowerPoint displaying data for loan activity through 6/30/2020: https://www.sba.gov/sites/default/files/2020-07/PPP%20Results%20-%20Sunday%20FINAL-508.pdf
PPP Loan-Level Data Disclosure: The US Small Business Administration, in consultation with the Treasury Department, announced the release of detailed loan-level data for the Paycheck Protection Program (PPP). This disclosure covers each of the 4.9 million PPP loans that have been made and will include business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amounts with certain dollar ranges. For loans under $150,000, which represent about 25% of all loans, the business names and addresses are being omitted.
EIDL Aggregate-Level Data Update: The SBA released program utilization information for the Economic Injury Disaster Loan. As of July 3, 2020, 2.2 million EIDL loans have been approved in the US for a total of $134.6 billion. In California, 370,254 EIDL loans have been approved for a total of $24.8 billion. Link to a PowerPoint displaying data for loan activity through 07/03/2020 https://www.sba.gov/document/report-covid-19-eidl-loans-report-7-03-20
SBA Weekly Lending Reports: The US SBA released its weekly lending report for the week ending June 26, 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.
SBA Disaster Assistance
CA Loans Approved (as of 6/21)
341,959
Dollar Amount of CA Loans Approved (as of 6/26)
$23,393,086,944
CA Loan Advances Processed (as of 6/26)
629,419
Dollar Amount of CA Loan Advances Processed
$1,959,190,000
Payment Protection Plan (as of 6/12)
569,336
Payment Protection Plan Approved (total)
$67,777,200,304
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 July 10. 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
Great Plates Delivered (as of 7/6)
Letters of Intent Received from Local Administrators
53
DEMAND: Estimated Weekly Individuals to be Served
2,701,530
Individuals Served This Week as of 6/29*
33,461
DEMAND: Estimated Food Providers Required to Meet Demand
430,000**
Food Providers Contracted as of 6/29*
634
*Data received from Great Plates Data Portal updated twice per week.
