Assembly is Prepared to Re-Convene: California Assembly Speaker Rendon (D-Lakewood) announced that the California State Assembly has taken extensive and multifaceted action in anticipation of the Assembly reconvening on Monday, May 4, 2020. This action is in order to protect the health of Members, staff and the public, while respecting the right of the public to attend and participate in legislative proceedings. https://ajed.assembly.ca.gov/sites/ajed.assembly.ca.gov/files/Participation%20in%20the%20Legislative%20Process%20During%20COVID-19.pdf
Federal GOV is Asking for Input: The U.S. Department of Labor invited small businesses and workers to participate in its “Opening America’s Workplaces Again National Online Dialogue.” Through this dialogue, the public can provide input on how to reopen America’s workplaces safely. The comment period ends May 7, 2020. The six topics: (1) Reopening businesses; (2) Commuting safely; (3) Working safely; (4) Accommodating members of vulnerable populations; (5) Supporting America’s families; and (6) Reducing regulatory burdens.
Another Federal Stimulus Bill: Numerous sources are reporting that Congress is considering a Phase 4 package that could total $1 trillion. While few details are available, top priorities reportedly include an extension of unemployment insurance, more targeted small business assistance, and another round of direct checks to taxpayers.
Spanish Language Webinar: The California Entrepreneurship Task Force, with the support of the Office of the Small Business Advocate at the Governor’s Office of Business and Economic Development, hosted a Spanish-speaking rapid response session entitled, “Accesso a Capital – con Diferentes Recursos.” The discussion featured Latinx and Spanish-speaking leaders from the small business and nonprofit lending community, including a Community Development Financial Institution sharing how small businesses can access capital during COVID-19.
Deadline to Add Dependents: May 5 is the deadline for VA and SSI recipients - who do not file a tax return and do have dependents - to update their information online. If the information is not updated by the May 5 deadline, the $500 per eligible dependent will be paid in association with a return filing for tax year 2020.
Child Care Portal: Governor Newsom announced a new portal to help parents, including essential workers and vulnerable families, find safe, reliable and accessible child care options. The new portal enables parents to enter their location and the type of care they need, instantly receiving a list of local center-based and family child care programs. https://covid19.ca.gov/childcare/
Practical Tips for Surviving the Coronavirus: The Federal Trade Commission launched a special page, Financial Impact of the Coronavirus, where they compiled dollars-and-cents tips for consumers and small business owners. The webpage includes information for people with family members facing job loss, and advice on what to do about mortgage payments, car notes, and student loans when less income is coming in. For small businesses, there are tips about how to negotiate loans and how to avoid scams. https://www.consumer.ftc.gov/coronavirus/financial-impact#Small%20Business
Employee Retention Credit: The IRS has posted an updated Frequently Asked Questions (FAQs) providing answers regarding the Employee Retention Credit under the CARES Act. The Employee Retention Credit is an incentive to encouraged businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act?utm_medium=email&utm_source=govdelivery
International Workers Day: Governor Newsom recognized International Workers’ Day by recognizing the contributions and sacrifice of California’s essential workforce, including health care workers, farmworkers, grocery workers, teachers, care givers and countless others keeping the state operating during the COVID-19 pandemic. The Governor also highlighted state resources available for essential workers and resources for those who may have lost their jobs as a result of the pandemic.
Update from the Port of Los Angeles:
N95 Mask Deal for LA: Los Angeles Mayor Garcetti and Logistics Victory Los Angeles (LoVLA) signed an agreement with Honeywell to purchase 24 million N95 masks as part of a City of Los Angeles stockpile of personal protective equipment (PPE). Gene Seroka, the Executive Director of the Port of Los Angeles, leads LoVLA. LoVLA is also seeking resources to address on-going needs for isolation gowns, infrared thermometers, and nitrile gloves. Sources for these essential items can be registered with www.lovla.org.
Weekly Video Update: Port of Los Angeles Executive Director Gene Seroka released his weekly video update in which he confirms that LA Port operations are running smoothly and without disruption, and anticipates increased cargo volumes for April 2020, but still lower than April 2019. https://www.youtube.com/watch?v=qm_hifEaWdg&feature=youtu.be
ECONOMIC RECOVERY
Consumer Spending Down: U.S. Bureau of Economic Analysis (BEA) published a working paper on the impact of the coronavirus on consumer spending. Overall consumer spending was down 13.7% within select goods and services since March 11, when the World health Organization (WHO) declared the coronavirus a global pandemic. Consumer spending in restaurants and accommodation is estimated to have been down by 65% and 80% respectively within a week of the WHO declaration. The impact of these reductions were partially offset by a 100% increase in food and beverage store sales. Modeling and analysis by the US BEA estimates an aggregate “pandemic effect” of approximately –27.8%. www.bea.gov/news/2020/personal-income-and-capital-outlays-march-2020
SSBCI Support Letter: The Association of Financial Development Corporations sent a letter to the US Congress educating Members of the value of the State Small Business Credit Initiative (SSBCI) Program during the Great Recession and explaining how it could serve as a useful tool in the state recovery efforts following the coronavirus emergency. The Association is participating in a national call for a 2020 SSBCI Program. (The letter is attached.)
CALED Recovery Recommendations: The California Association for Local Economic Development submitted its list of economic recovery recommendations to the Administration. JEDE is hosting economic recovery recommendations from its stakeholders on the JEDE Website. (CALED letter is attached.) https://ajed.assembly.ca.gov/content/economic-recovery-strategies
New Export Controls: The Department of Commerce announced new export control actions to prevent efforts by entities in China, Russia, and Venezuela to acquire US technology that could be used in development of weapons, military aircraft, or surveillance technology through civilian supply chains, or under civilian-use pretenses, for military end-uses and military end-users. https://www.commerce.gov/news/press-releases/2020/04/commerce-tightens-restrictions-technology-exports-combat-chinese-0
Aluminum Import Monitoring: The US Department of Commerce issued proposed regulations to create a new Aluminum Import Monitoring and Analysis (AIM) program. Modeled on the successful Steel Import Monitoring and Analysis program, AIM will allow both external users and the US Government to track surges in aluminum imports and to detect potential evasion and circumvention of aluminum duties as well as transshipment. The proposed regulations are on a 27-day public comment period, which ends May 29, 2020. https://www.trade.gov/press-release/department-commerce-issues-proposed-regulations-create-aluminum-import-monitor
CA Budget Reserves: The California Budget and Policy Center released a report on how to use California’s budget reserves to address the coronavirus emergency.
Workforce and Economic Development Priorities: California Competes released its 2020 policy priorities, A Pathway to Economic Recovery for Every Californian. Their 2020 priorities are focused on safeguarding and enhancing the future of underserved communities across the state. Among other actions, the 2020 priorities identify strategies designed to ensure postsecondary education serves as a vehicle for economic and social mobility in California. https://californiacompetes.org/?mc_cid=c0aa4f672a&mc_eid=89807171fd
Frontline Foods and Dine11: Restaurants interested in donating food to health care workers in the front lines of the pandemic can do so through Dine11 and Frontline Foods. Dine11 collects food from local restaurants and, through volunteers, delivers the food to hospitals. They are set in Los Angeles, San Francisco, New York City, Long Island, and Marin County. Frontline Foods has donation funds set up to feed hospitals and has a hospital signup link to register hospitals that want to be part of this initiative. Shared by San Joaquin Valley Rural Development Center at Fresno State. https://dine11.org/www.frontlinefoods.org
DOL Food-Related Resources: The US Department of Labor released new guidance and educational materials to assist food-related businesses during the coronavirus emergency.
Senior Food Update: The Governor’s Office of Emergency Services released additional information about the Great Plates initiative. Local governments who want to participate have until Monday, May 4, to submit letters of intent. While local governments determine the selection of restaurants, food selections need to meet minimum health standards, as set by the Department of Human Services. Enrollment of seniors is done locally and supported through an online registration website maintained by the state. UPDATE: FEMA just extended the Great Plates initiative to June 10.
Funding for Low Income Tax Preparer Clinics: The Internal Revenue Service announced that the application period for Low Income Taxpayer Clinic (LITC) grants for calendar year 2021 will run from April 30, 2020, to June 16, 2020. The LITC Program awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain an LITC. An LITC must provide services for free or for no more than a nominal fee. https://www.irs.gov/pub/irs-pdf/p3319.pdf
Broadband Funding: National Telecommunication Information Administration has updated its BroadbandUSA website database of 57 federal broadband programs, spanning 14 federal agencies with billions of dollars for broadband grants, loans, and other resources. The site, created with the help of participating federal agencies, is designed to make it easier for providers and stakeholders to find federal funding and permitting information. https://www.ntia.gov/blog/2020/ntia-updates-comprehensive-guide-federal-broadband-funding
High Performance Computing Grant: The DOD Advanced Manufacturing Office announced an NOI to issue a funding opportunity under DOE's High Performance Computing for Energy Innovation (HPC4EI) initiative. The solicitation will include topics in the AMO-funded High Performance Computing for Manufacturing program to support the development of energy-efficient manufacturing processes through partnerships between US manufacturers and DOE National Laboratory, university, and non-profit partners. https://hpc4energyinnovation.llnl.gov/
COVID-19 PROGRAM UPDATES
Main Street Program: Federal Reserve Announces expansion of Main Street Program based on input from 2,200 letters from individuals, businesses, and nonprofits. The changes include: creating a third loan option, with increased risk sharing by lenders for borrowers with greater leverage; lowering the minimum loan size for certain loans to $500,000; and expanding the pool of businesses eligible to borrow.
Small Loan PPP: AmPac is funding PPP loans and received a new round of funds on Thursday, April 30, 2020. AmPac has chosen to serve businesses requiring loans of $50,000 of less. Small businesses can visit their website (www.ampac.com) for more information.
PPP Liquidity Facility: The Federal Reserve on Thursday expanded access to its Paycheck Protection Program Liquidity Facility to non-depository institution lenders, and expanded the collateral that can be pledged. The changes will facilitate lending to small businesses via the Small Business Administration's (SBA) Paycheck Protection Program (PPP).
Future of Work Being Put on Pause: The California Future of Work Commission released an update on its progress, which captures the best thinking of the Commission over the course of 8 months of regular convenings prior to the COVID-19 pandemic. The Commissioners decided to pause in developing recommendations in order to be able to account for the impact of the current crisis within its work. https://www.labor.ca.gov/wp-content/uploads/2020/04/CA-Future-of-Work-Update-on-Progress-April-2020.pdf
