MAJOR COVID-19 ANNOUNCEMENTS
CA April Unemployment: California’s unemployment rate rose to a record high 15.5% in April as the state’s employers lost 2,344,700 nonfarm payroll jobs, according to data released by the California Employment Development Department from two surveys. According to the EDD website, the unprecedented job losses are like nothing before seen in California history and are a direct result of the impacts of the COVID-19 pandemic. https://edd.ca.gov/newsroom/unemployment-may-2020.htm
California Connected: Governor Newsom launched California Connected, the state’s comprehensive contact tracing program and public awareness campaign. As part of California Connected, public health workers from communities across the state will connect with individuals who test positive for COVID-19 and work with them, and people they have been in close contact with, to ensure they have access to confidential testing, as well as medical care and other services to help prevent the spread of the virus.
Announcement: https://www.gov.ca.gov/2020/05/22/governor-newsom-launches-california-connected-californias-contact-tracing-program-and-public-awareness-campaign/
California Connected Website: https://covid19.ca.gov/contact-tracing/
PSA Regarding Contact Tracing: https://www.youtube.com/watch?v=OhClSfZuP8Q&feature=youtu.be
UCSF Online Training Academy: https://www.ucsf.edu/news/2020/05/417346/ucsf-partners-state-develop-public-health-workforce-covid-19-response
UCLA Online Training Academy: https://ph.ucla.edu/news/press-release/2020/may/ucla-establishes-covid-19-pandemic-response-training-program
Fraudulent Robocalls: The Federal Trade Commission (FTC) sent joint letters with the Federal Communications Commission (FCC) to three companies providing Voice over Internet Protocol (VoIP) services, warning them that routing and transmitting illegal coronavirus-related scam robocalls is itself illegal and may lead to federal law enforcement against them. The letters follow three joint FTC/FCC warning letters sent to VoIP service providers in early April. The agencies sent a separate letter to USTelecom – The Broadband Association (USTelecom), a trade association that represents US-based telecommunications-related businesses. The letter thanks USTelecom for identifying and mitigating fraudulent robocalls. https://www.ftc.gov/news-events/press-releases/2020/05/ftc-fcc-send-joint-letters-additional-voip-providers-warning?utm_source=govdelivery
Responsible Small-Dollar Loans: The federal financial institution regulatory agencies issued principles for offering small-dollar loans in a responsible manner to meet financial institutions’ customers' short-term credit needs. In releasing the "Interagency Lending Principles for Offering Responsible Small-Dollar Loans," the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency stated that they recognize the important role that responsibly offered small-dollar loans can play in helping customers meet their ongoing needs for credit from temporary cash-flow imbalances, unexpected expenses, or income shortfalls, including during periods of economic stress, natural disasters, or other extraordinary circumstances such as the public health emergency created by COVID-19. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200520a.htm
New FAQ on Workers’ Comp: On May 6, 2020, Governor Newsom signed Executive Order N-62-20, which provides that under certain circumstances, it is presumed that workers who contract a COVID-19-related illness between March 19 and July 5, 2020, have done so at work and are thus eligible for workers’ compensation benefits. The Department of Industrial Relations prepared a FAQ to assist businesses in understanding this change.
FAQ on Executive Order: https://www.dir.ca.gov/dwc/Covid-19/FAQs.html
Executive Order N-62-20: https://www.gov.ca.gov/wp-content/uploads/2020/05/5.6.20-EO-N-62-20-text.pdf
Rural Business Loans: The US Department of Agriculture announced the availability of up to $1 billion in loan guarantees to help rural businesses meet their working capital needs during the coronavirus pandemic. Additionally, agricultural producers that are not eligible for USDA Farm Service Agency loans may receive funding under USDA Business & Industry CARES Act Program provisions.
Guarantee Provisions in Federal Register Notice: https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-11243.pdf
Program Webpage: https://www.rd.usda.gov/programs-services/business-and-industry-cares-act-program
ECONOMIC RECOVERY
Manufacturing Response and Recovery Initiative: The Assembly Committee on Jobs, Economic Development, and the Economy sent recommendations to the Governor on how to jump-start the state’s economic recovery and to become better prepared to protect the health and safety of Californians in the future. The JEDE Committee called for the establishment of a Manufacturing Response and Recovery Initiative (MRR Initiative), which includes integration of manufacturing and supply chain considerations into state emergency planning, as well as five key program actions to address the coronavirus emergency now and put the state on a solid track to recovery. [The letter is attached.] The release of the letter coincides with the JEDE Committee’s unanimous passage of several economic recovery bills, including:
AB 3101 (B. Rubio and Cervantes): This bill establishes a New Market Tax Credit to spur private investment in small businesses located in low-income neighborhoods. Funding for the tax credit could be carved out from the existing California Competes Tax Credit, as recommended in the MRR Initiative. The bill responds to the growing income disparities individuals from historically underinvested communities face and which the coronavirus emergency have laid bare.
AB 3307 (E. Garcia and Cervantes as authors, and all JEDE members as co-authors): This bill authorizes the establishment of the California Manufacturing Disaster Direct Loan and Loan Guarantee Program for the purpose of attracting, retaining, retooling, establishing, and expanding manufacturing and logistics capacity to meet the needs of California. The bill responds to the current lack of domestic production in key areas and the need to pivot existing manufacturers to new and expanded lines of production.
Housing Bill Package to Spur Economic Recovery: Senate Democrats unveiled a package of legislation today intended to bolster production of new housing and remove existing barriers by further streamlining the development process. The housing production package includes the following bills:
SB 902 (Wiener): This bill allows local governments to pass a zoning ordinance that is not subject to CEQA for projects that allow up to 10 units, if they are located in a transit-rich area, jobs-rich area, or an urban infill site. *As proposed to be amended on May 20, 2020.
SB 995 (Atkins): This bill would expand the application of streamlining the CEQA process to smaller housing projects that include at least 15% affordable housing. It also would broaden application and utilization of the Master Environmental Impact Report (MEIR) process, which allows cities to do upfront planning that streamlines housing approvals on an individual project level. The bill would extend and expand a program that has generated 10,573 housing units and created nearly 47,000 jobs since 2011.
SB 1085 (Skinner): This bill would enhance existing Density Bonus Law by increasing the number of incentives provided to developers in exchange for providing more affordable housing units.
SB 1120 (Atkins): This bill would encourage small-scale neighborhood development by streamlining the process for a homeowner to create a duplex or subdivide an existing lot in all residential areas. Such applications would be required to meet a list of qualifications that ensure protection of local zoning and design standards, historic districts, environmental quality, and existing tenants vulnerable to displacement.
SB 1385 (Caballero): This bill would unlock existing land zoned for office and retail use and allow housing to become an eligible use on those sites. It also would extend the state’s streamlined ministerial housing approval process to office and retail sites that have been vacant or underutilized for at least three years.
Health and Safety Re-Opening Poster: California Manufacturing and Technology Association created a poster to support the safe re-opening of manufacturing facilities. The post includes important reminders for employees regarding self-screening and facility mitigation efforts during COVID-19. A Spanish-language poster is under development. Copy of poster: https://www.cmta.net/multimedia/cmta_covid19_11x17_poster_english.pdf
Federal Regulatory Action: President Trump issued an executive order (issued May 19, 2020) that instructs the head of every federal agency to remove any regulations that threaten economic recovery. “The heads of all agencies shall identify regulatory standards that may inhibit economic recovery and shall consider taking appropriate action, consistent with applicable law, including by issuing proposed rules as necessary, to temporarily or permanently rescind, modify, waive, or exempt persons or entities from those requirements, and to consider exercising appropriate temporary enforcement discretion or appropriate temporary extensions of time as provided for in enforceable agreements with respect to those requirements, for the purpose of promoting job creation and economic growth, insofar as doing so is consistent with the law and with the policy considerations identified in section 1 of this order.” https://www.whitehouse.gov/presidential-actions/executive-order-regulatory-relief-support-economic-recovery/
Re-Opening Orange County Businesses: The Orange County Business Council reports that 25 Orange County business organizations are asking the County to re-open and to prioritize CARES “Act funding -- whatever it takes -- to implement measures and programs required to support your efforts for early reopening and allow for state certification as required by the Resilience Roadmap with a local variance attestation.”
Business Organizations’ Letter to the County: https://files.constantcontact.com/3c634807be/88b1480a-3749-4f8c-ba7a-217e84f22e64.pdf
ReOpen OC Safely – A new website to assist businesses in preparing to meet state, federal, and local guidance to reopen: https://www.ocbc.org/reopenocsafely/
Tax Exempt Bonds: The Council of Development Finance Agencies is leading a coalition that is urging Congress to improve tax-exempt bonds provisions. The group believes that bonds are a critical economic recovery tool.
BUDGET ACTIVITIES RELATED TO ECONOMIC RECOVERY
Assembly Budget Subcommittee 4 Hearing: Assembly Budget Subcommittee 4 began hearing the May Revision Budget.
Hearing Materials: https://abgt.assembly.ca.gov/sub4hearingagendas
Submitting Written Comments to Sub 4: BudgetSub4@asm.ca.gov
Small Business Budget Items: The JEDE Committee has tracked over 500 support letters/signatories from small business owners and nonprofit organizations serving the needs of small businesses, including the $50 million for the Small Business Loan Guarantee Program, the $20 million for the state’s network of technical assistance centers, the retention of the Earned Income Tax Credit, and the retention of the waiver of the $800 minimum franchise tax for small and medium size business during their first year of businesses.
Opposition to CA Budget Proposal on Paid Family Leave: 56 business organizations submitted a letter to the Governor and Budget Committee opposing the proposed Paid Family Leave budget trailer bill, as included within the Governor’s May Revision Budget.
COVID-19 PROGRAM UPDATES
Help with EDD: the California Employment Development Department prepared a video overview of benefit programs available for Californians impacted by COVID-19 and tips for navigating their website. Watch video here. https://www.youtube.com/watch?v=DEQBmpkgEQ0
GRANTS
Grants for Financial Literacy: The Department of Business Oversight announced that it will begin accepting applications on July 1 for CalMoneySmart, a grant program created by Senate Bill 455 (Ch. 478, Stats. 2019). Applicants can apply for grants of up to $100,000 to develop and deliver free financial education and empowerment programs to help unbanked and underbanked communities. https://dbo.ca.gov/calmoneysmart/
SURVEYS, DATA, AND ANALYSES
April Employment Analysis: Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development released an analysis of the April 2020 employment numbers which were released on May 22, 2020. Among other statements, the report notes that while nonfarm employment declined by a record-breaking 2,344,700 positions in April, the fact that approximately three-fourths of laid off workers categorize their job loss as temporary is one potential bright spot. https://beaconecon.com/publications/beacon-employment-report/
SCAG Economic Impact Report: The Southern California Association of Governments released an analysis of the economic impact of COVID‐19 on the Southern California economy. The report projects an annual unemployment rate for the six-county region of 19.3% in 2020, tapering down to 12.2% in 2021. The 2020 rate is particularly significant given the year started with unemployment averaging around 4% in January and February.
Tracking Federal Stimulus Money: The Congressional Oversight Commission released a report finding that the US Treasury had spent very little from a $500 billion fund created by the CARES Act in March to help businesses and local governments. https://hill.house.gov/uploadedfiles/coc_1st_report_05.18.2020.pdf
NFIB Survey: The Research Center of the National Federation of Independent Businesses released a survey on the status of the small business loan programs. Among NFIB members, 80% applied for a Paycheck Protection Program loan and almost 90% have received the loan. Most of the loans were deposited between mid-April and mid-May. The survey also found that over half (54%) of owners with a PPP loan are expecting all of their expenses to be forgiven. https://www.nfib.com/content/analysis/coronavirus/nfib-survey-majority-of-small-business-have-received-ppp-loan-funding/?roi=echo4-42291489213-98912937-0b213da3353cde6807b2ca26846bfcfb&utm_campaign=eNews05212020&utm_source=eNews-CA&utm_medium=Email
State of Small Business Report: The Small Business Roundtable (SBR) and Facebook have partnered to release the State of Small Business Report on the impact of small businesses on the US economy. The survey was conducted with approximately 86,000 people who owned, managed or worked for a small or medium-sized business. https://dataforgood.fb.com/wp-content/uploads/2020/05/SMBReport.pdf
2018 Annual Business Survey: The US Census Bureau released new estimates showing women-owned 1.1 million employer firms and minorities-owned 1.0 million. According to the 2018 Annual Business Survey (ABS), covering year 2017, 5.6% (322,076) of all US businesses were Hispanic-owned and 6.1% (351,237) were owned by veterans. https://www.census.gov/newsroom/press-releases/2020/annual-business-survey-data.html
Microbusinesses and the Pandemic: Prosperity Now released a report, The Cascading Impact of COVID-19 on Microbusinesses, which explores the reasons why businesses owned by people of color, women, and immigrants have been especially affected by the pandemic. https://prosperitynow.org/resources/cascading-impact-covid-19-microbusinesses-and-us-economy
Tracking Economic Impact Payments: The US Treasury Department and IRS released updated state-by-state figures for Economic Impact Payments reflecting the opening weeks of the program. The chart bellow shows data on a selection of states. The IRS continues to encourage people who do not receive direct federal payment and have not filed 2018 or 2019 income tax returns to visit the Non-Filer tool at www.irs.gov and register for Economic Impact Payments. https://www.irs.gov/newsroom/treasury-irs-release-latest-state-by-state-economic-impact-payment-figures-for-may-22-2020
Economic Impact Payments, totals by State | ||
State | Total Number of EIP Payments | Total Amount of EIP Payments |
Arizona | 3,242,043 | $ 5,573,167,261 |
California | 16,869,636 | $ 27,897,283,972 |
Colorado | 2,605,089 | $ 4,407,408,401 |
Florida | 10,618,792 | $ 17,546,164,251 |
Georgia | 4,763,109 | $ 8,081,253,826 |
Illinois | 5,729,351 | $ 9,630,495,809 |
Indiana | 3,174,698 | $ 5,613,824,661 |
Maryland | 2,692,062 | $ 4,380,831,484 |
Massachusetts | 3,136,787 | $ 5,028,963,151 |
Michigan | 4,813,156 | $ 8,286,614,929 |
Minnesota | 2,613,771 | $ 4,577,086,990 |
Missouri | 2,933,973 | $ 5,118,911,639 |
New Jersey | 3,955,396 | $ 6,507,621,505 |
New York | 9,341,632 | $ 15,034,060,259 |
North Carolina | 4,820,974 | $ 8,264,415,092 |
Ohio | 5,828,477 | $ 9,833,041,489 |
Oregon | 2,031,861 | $ 3,425,278,483 |
Pennsylvania | 6,258,107 | $ 10,596,406,088 |
South Carolina | 2,443,864 | $ 4,174,979,940 |
Tennessee | 3,305,606 | $ 5,693,071,645 |
Texas | 12,396,590 | $ 21,635,810,592 |
Virginia | 3,796,975 | $ 6,447,589,217 |
Washington | 3,453,810 | $ 5,876,091,642 |
Wisconsin | 2,817,912 | $ 4,948,382,340 |
Foreign Addresses | 748,724 | $ 1,222,795,510 |