JEDE COVID-19 Update for March 23, 2020

Dear JEDE Friends,

Welcome to week two of working remotely and practicing appropriate social distancing.  The public and private sectors continue to take important steps in responding to COVID-19.  This small business update includes a summary of the key actions over the weekend, as well as Monday.

Please note that California’s primary COVID-19 webpage is www.covid19.ca.gov, where you will find current information on all aspects of California’s emergency response actions.

WORKSHOPS

NEW FEDERAL TAX CREDIT ANNOUNCED

  • The US Treasury, IRS, and the federal Department of Labor announced (release # IR-2020-57) a refundable tax credit for small and medium-size businesses to cover the cost of paid sick leave.  More information about this new tax credit are available under “New Releases” on the IRS’ COVID-19 webpage:  www.irs.gov/Coronavirus

NEW GUIDANCE TO LENDERS

  • Federal and State Regulators Direct Lenders to Help Borrowers:  The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.  The official notice  stated that thes regulators will not criticize financial institutions for doing so in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan modifications as troubled debt restructurings (TDRs). The joint statement also provides supervisory views on past-due and nonaccrual regulatory reporting of loan modification program. 

    • Announcement:  https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200322a.htm

    • This joint announcement included:  The Board of Governor’s of the Federal Reserve System, the Conference of State Bank Supervisors, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and the Office of the Comptroller of the Currency.

Toni

Chief Consultant

Assembly Committee on Jobs, Economic Development, and the Economy

Assemblymember Sabrina Cervantes serves as Committee Chair

Toni.symonds@asm.ca.gov

916-319-2090

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