MAJOR COVID-19 ACTIONS AND ANNOUNCEMENTS
COVID-19 Racial Disparities: The number of reported COVID-19 cases, including the number of deaths, continues to reflect significant racial and ethnic disparities. https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/Race-Ethnicity.aspx
Certification of Women-Owned Businesses: The SBA published Women-Owned Small Business Federal Contracting program regulations detailing a free, online certification and eligibility application process for women-owned small businesses and economically-disadvantaged women-owned small businesses. https://www.federalregister.gov/documents/2020/05/11/2020-09022/women-owned-small-business-and-economically-disadvantaged-women-owned-small-business-certification?utm_medium=email&utm_source=govdelivery
California Fiscal Outlook: The Legislative Analysts’ Office issued an update on the budget’s condition in light of the coronavirus pandemic and the associated economic downturn. The update presents two potential scenarios: an optimistic “U-shaped” recession and more pessimistic “L-shaped” recession. “Under these two scenarios, the state would have to address an $18 billion or $31 billion budget problem. The state’s newly emergent fiscal challenges are likely to extend well beyond the end of the public health crisis. Under both of our economic scenarios, budget deficits persist until at least 2023-24 with multiyear deficits summing to $64 billion in the U-shaped recession and $126 billion in the L-shaped recession.” https://lao.ca.gov/Publications/Report/4228?utm_source=laowww&utm_medium=email&utm_campaign=4228
DOF Employment Outlook: California's Dept. of Finance projected 18% unemployment as a result of COVID-19 and an overall budget deficit of approximately $54.3 billion, of which $13.4 billion occurs in the current year and $40.9 billion in the budget year. Manufacturing, jobs, wages, and supply chain will play a critical role in California's economic recovery and CMTA will be working with the Administration, our regulatory agencies and the Legislature to drive policies that help the sector grow in the short and long term. http://www.dof.ca.gov/Budget/Historical_Budget_Publications/2020-21/documents/DOF_FISCAL_UPDATE-MAY-7TH.pdf
April Economic Data for the US: https://www.bls.gov/news.release/empsit.nr0.htm
US Nonfarm payroll fell by 20.5 million in April.
US Unemployment rate rose to 14.7% (10.3% increase over the prior month).
Unemployment rates rose among all major worker groups. Unemployment rates for selected groups: 13.0% adult men; 15.5% adult women, 31.9% teenagers, 14.2% Whites, 16.7% Blacks, 14.5% Asians, and 18.9% Hispanics.
Number of unemployed persons who reported being temporary laid offed: 18.1 million .
EDA Releases CARES Act Funding: US Department of Commerce announced that the Department’s Economic Development Administration (EDA) is now accepting applications from eligible grantees for $1.5 billion in CARES Act supplemental funds (EDA CARES Act Recovery Assistance) intended to help communities prevent, prepare for, and respond to coronavirus.
Announcement: https://www.commerce.gov/news/press-releases/2020/05/us-department-commerce-announces-availability-15-billion-cares-act
Webpage for the EDA CARES Act Recovery Assistance: https://www.eda.gov/coronavirus/?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=
Families Food Box Program: The US Department of Agriculture (USDA) today approved $1.2 billion in contracts to support American producers and communities in need through the USDA Farmers to Families Food Box Program.
Western States Letter for Federal Funding: The states of California, Oregon, Washington, Colorado, and Nevada requested $1 trillion in direct and flexible relief to states and local governments in a letter (5/11/20) to Congressional leadership. https://www.gov.ca.gov/wp-content/uploads/2020/05/5.11.20-Western-States-Letter.pdf
Executive Order on Business Extensions: Governor Newsom issued executive order (N-63-20) to extend deadlines for certification requirements for public school project inspectors who previously passed an initial evaluation, as well as for Certified Access Specialists who ensure compliance with disability access in properties and businesses. The order also gives the State Fire Marshal 60 days to publish lists of building materials requirements and registration renewals for flame-retardant fabrics and applications. Further, the order extends by 60 days certain procedural deadlines of the Department of Industrial Relations, including the deadline for workers to file wage claims with the Labor Commissioner; the deadline for employers to appeal Cal/OSHA citations; and the deadline for Workers’ Compensation Administrative Law Judges to issue decisions.
ECONOMIC RECOVERY
Re-Opening Business Protocols: Governor released new business operation protocols to protect worker and public safety. Progress in reopening businesses is based on specific health indicators, which the Governor tracks and reports using a “Report Card.”
Announcement: https://www.gov.ca.gov/2020/05/07/governor-newsom-releases-updated-industry-guidance/
Report Card: https://www.gov.ca.gov/wp-content/uploads/2020/05/5.4-Report-Card-on-California-Resilience-Roadmap.pdf
Resilience Roadmap: https://covid19.ca.gov/roadmap/
Statewide Industry Guidance: https://covid19.ca.gov/industry-guidance/
County Guidance: https://covid19.ca.gov/roadmap-counties/
Quick Guide to Reopening: Below is a quick-guide for reopening. California is currently at Stage 2. Resiliency Roadmap: https://covid19.ca.gov/roadmap/
STAGE 1: Safety and Preparedness
Continue to build out testing, contact tracing, PPE and hospital surge capacity
Make essential workforce environments as safe as possible
Prepare sector-by-sector safety guidelines
STAGE 2: Lower Risk Workplaces
Retail (i.e.: curbside pickup)
Manufacturing
Offices (when telework is not possible)
More public spaces
STAGE 3: Higher Risk Workplaces with Modifications
Personal care (hair and nail salons, gyms)
Entertainment venues (theaters, sports without live audiences)
In-person religious services (churches, weddings)
STAGE 4: End of Stay-At-Home Order
Concerts
Convention centers
Live audience sports
Nine More Counties Open: Governor Newsom reports that 9 additional counties have met the metrics for expanding businesses under the Stage 2 including Amador, Lassen, Nevada, Placer, Plumas, Shasta, Sierra, Tuolumne and Yuba-Sutter have attested that they meet certain criteria necessary to move further into Stage 2. By doing so, these counties – similar to Butte and El Dorado counties – may reopen various parts of the economy with modifications implemented to prevent the spread of COVID-19. https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/Local-Variance-Attestations.aspx
Listening Tour: Governor Newsom continued with his Economic Recovery & Reinvention Listening Tour, holding another virtual roundtable on May 7 with restaurant owners and workers to discuss their experiences and insights for what recovery can and should look like in a new economic landscape coming out of the COVID-19 pandemic. On May 8, the Governor visited two small businesses in Sacramento to see how they were adapting to the new protocols.
Governor’s YouTube Page: https://www.youtube.com/cagovernor?uid=rHSYLKqmLunBzlSfunGDSA&app=desktop
Los Angeles Port Update: The Port of Los Angeles Executive Director, Gene Seroka, issued a video of his presentation to business stakeholders at the International Ports and Harbors World Ports Conference. https://www.youtube.com/watch?v=DkKJSFzMGEA&feature=youtu.be. Other updates below.
The Port of Los Angeles continues to be open with all terminals operating. On May 13, there were 12 ships in port – 9 container, 1 liquid bulk vessel, 1 dry bulk vessel, and USNS Mercy.
Cargo levels are 80-85% of normal volumes this time of year. In April, the Port of Los Angeles moved 688,999 Twenty-Foot Equivalent Units (TEUs), which is 53% more than March volumes, but a decrease of 6.45% compared to April 2019. Overall volumes for 2020 are expected to be considerably lower than 2019.
There were 40 cancelled sailings during Q1 2020. In the second quarter, more than 30 scheduled sailings have been cancelled for sailings between April 20 and July 19, 2020.
Which Communities are Most Vulnerable to COVID-19: The Initiative for a Cooperative Inner City released a report identifying general patterns of medical and economic vulnerability. The report further suggests the types of communities where medical and economic assistance might best be targeted.
CA Senate Budget Framework: California State Senate released its budget framework, which includes recommendations from the Senate Democratic Caucus Working Group on Economic Recovery. https://sd39.senate.ca.gov/sites/sd39.senate.ca.gov/files/5.12.20_slides_-_economic_recovery.pdf
GRANTS
Energy-Intensive Manufacturing: The US Department of Energy’s Clean Energy Smart Manufacturing Innovation Institute (CESMII) announced up to $7 million in new funding to improve energy-intensive manufacturing processes and strengthen America’s manufacturing sector. CESMII released two project calls to fund research and development (R&D) projects that align with the institute’s goal of accelerating smart manufacturing adoption through the integration of advanced sensors, data, and platforms and controls.
Manufacturing Assistance Grant: The CARES Act provided $50M for the Manufacturing Extension Partnerships (MEP Centers) to help US manufacturers prevent, prepare for and respond to the coronavirus. MEP centers, including the California Manufacturing and Technology Corporation, may apply for an award to help manufacturers recover from workforce and supply chain interruptions; apply for private insurance claims and disaster loans from the Small Business Administration; and access resources at the federal, state and local levels. https://www.grants.gov/web/grants/view-opportunity.html?oppId=326218
Advanced Manufacturing Grants: On May 5, 2020, awards were made to four Manufacturing Extension Partnerships (MEP Centers) to deploy advanced manufacturing technology services to US manufacturers. MEP Centers in Michigan, Indiana, Texas and California each received cooperative agreement awards for $1M.
GLOBAL RESPONSES TO COVID-19
Japan Supports Farmers: https://gain.fas.usda.gov/#/
Japan's farmers, foresters, and fishermen are eligible for cash allowances to help sustain businesses affected by COVID-19 related losses. Corporations are eligible for a maximum allowance of two million yen ($18,692) and individual business entities are eligible for a maximum allowance of one million yen ($9,345).
Japanese farmers, foresters, and fishermen whose income from sales decreased over 30% for any month between February and October of 2020 are eligible for tax relief as part of Japan’s COVID-19 Emergency Economic Package. Farmers are also eligible to participate in an existing property tax incentive program that has been expanded to include facilities and buildings.
Sweden Business Support: Sweden announced a number of measures to help businesses that have been adversely affected by the coronavirus pandemic. https://www.government.se/articles/2020/03/economic-measures-in-response-to-covid-19/
$15 million for a Green Jobs Initiative, intended to mitigate unemployment linked to the ongoing outbreak by creating work in nature and forest conservation.
$297 million in funding to capitalize a small- and medium-sized business lending program.
$7.2 billion added to the Swedish Export Credit Corporation’s credit framework to provide both state supported and commercial credit to Swedish export companies.
Nearly $4 billion for a program to help businesses adapt to the COVID-19 realities of doing business. Examples provided include: Restaurants shifting to takeout orders, taxi companies becoming food delivery businesses, and manufacturing companies reorienting their production to produce health care materials.
$1.4 million to support additional students attending courses at the Swedish University of Agricultural Sciences.
The central government will assume the entire cost of all sick pay during April and May.
COVID-19 PROGRAM UPDATES
PPP Tax Deductibility: The IRS issued guidance (Notice 2020-32) guidance on the deductibility of otherwise deductible expenses incurred in a trade or business if a taxpayer received a loan through the Paycheck Protection Program (PPP) that is eventually forgiven. https://www.irs.gov/pub/irs-drop/n-20-32.pdf
Updated Mental Health Resources: The state continues to update its list of resources to assist workers, business owners, and family members who are experiencing stress due to the coronavirus emergency. As a primary rule, individuals should call their doctor or mental health provider in the case of an emergency or a possible serious mental health issue. The state has identified 16 hotlines offering emotional support for a variety of situations and other helpful mental health resources. https://covid19.ca.gov/resources-for-emotional-support-and-well-being/
Federal Action Regarding False COVID-19 Claims: The Federal Trade Commission sent letters to 45 more companies making COVID-19 prevention, treatment, or cure claims. https://www.ftc.gov/news-events/blogs/business-blog/2020/05/45-more-companies-get-coronavirus-warning-letters?utm_source=govdelivery
COVID-19 Scam Reporting: There is an ongoing threat of COVID-19 hoarding, price gouging, and business scams.
More information: https://www.justice.gov/coronavirus,, https://www.justice.gov/disaster-fraud and https://www.sba.gov/document/report--sba-programs-scams-fraud-alerts.
Report suspected COVID-19 fraud to the National Center for Disaster Fraud: 1-866-720-5721 or by email at: disaster@leo.gov.
Report any suspected SBA loan fraud to the Office of Inspector General’s (OIG) Hotline: 800-767-0385 or https://www.sba.gov/about-sba/oversight-advocacy/office-inspector-general/office-inspector-general-hotline.
Tax Info for Self-Employed: The IRS has produced a new webpage to address questions raised by self-employed taxpayers and business owners regarding regulatory relief provided by the IRS due the COVID-19 pandemic. https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers
Update on Great Plate Program:
AS OF MAY 12, 2020 | |
Total | Count |
Letters of Intent Received from Local Administrators | 69 |
Estimated Weekly Meals to be Served | 1,034,733 |
Estimated Weekly Individuals to be Served | 81,146 |
Food Providers Interested in Participating | 4,276 |
Closed Food Providers Interested in Participating | 350 |
Individuals Served This Week | 11,673 |