Stage II Announcement from California: Governor Newsom announced that California can begin moving into Stage II of reopening the economy as early as this Friday. Stage 2 includes the opening of lower-risk businesses and workplaces that are adapted for social distancing. Beginning Friday, low-risk retail establishments statewide can begin curb-side pick-ups, as well as related-manufacturing and logistics firms. Individual communities can expand reopening beyond this initial statewide protocol by submitting certain documentation to the state regarding medical surge and local testing capacity. Individual communities may also choose to not enter Stage II based on local conditions and capacity.
PAU Payments in Phases: According to a Sacramento Bee Article, Pandemic Unemployment Assistance (PAU) is being paid in two-parts. The first is an initial payment of $167 per week, which will begin within 24-to-48 hours of approval by EDD. The second payment for the remaining amount would come at a later and currently undefined date. The second amount could accrue up to $433 per week. The PUA is the program approved through the federal CARES Act for those individuals who were not otherwise eligible for the general Unemployment Insurance Program, including independent contractors and the self-employed. https://www.sacbee.com/news/california/article242430236.html
Ag Loans Available Under the Economic Injury Disaster Loan Program: The SBA has begun accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses. https://www.sba.gov/page/disaster-loan-applications
Main Street Lending Program: The Federal Reserve released more details on the Main Street Lending Program. The Main Street Lending Program is designed to assist small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Eligibility of borrowers is limited to businesses who meet one of these two criteria: (1) the business has 15,000 employees or fewer; or (2) the business had 2019 revenues of $5 billion or less. Loans will have a four-year maturity, and principal and interest payments on the loans will be deferred for one year. The Main Street Lending Program can be used to originate new loans (under MSNLF and MSPLF) or increase the size of existing loans (under MSELF). The fact sheets below provide additional and specific information about the MSNLF, MSPLF, and MSELF.
Executive Order on National Electrical Grid: President Trump issued an executive order prohibiting U.S. electric utilities from installing grid devices from foreign manufacturers that could threaten national security. The order requires the Department of Energy (DOE) to establish a "pre-qualified" vendor program that will allow utilities to identify friendly device makers from around the globe. The agency will also develop a program to identify any prohibited power devices already in use and work with utilities to "identify, isolate, monitor, and replace this equipment as appropriate." The DOE will also create a task force to develop new infrastructure procurement policies for utilities that are "fully integrated" with federal cybersecurity policies. https://www.whitehouse.gov/presidential-actions/executive-order-securing-united-states-bulk-power-system/
Export Guarantees: The US Department of Agriculture announced increased availability of credit guarantees for sales of US agricultural commodities under the Commodity Credit Corporation’s Export Credit Guarantee Program for fiscal year 2020. The total amount announced was $4.9 billion with $3.7 billion still available on May 4, 2020. https://www.fas.usda.gov/programs/export-credit-guarantee-program-gsm-102/gsm-102-allocations
Advisory to Municipal Bond Issuers: The US Securities and Exchange Commission has issued a Corporate Issuer Statement with economic observations about the impact of COVID-19 and requesting that appropriate financial and other disclosures be made by municipal bond issuers. The Corporate Issuer Statement noted “the presence of significant investor uncertainty—for both equity and fixed income investors—regarding the financial and operating status of many companies, as well as their future prospects, and the resulting thirst for information from investors and the marketplace more generally.” https://www.sec.gov/news/public-statement/statement-clayton-olsen-2020-05-04
GRANTS
Funding for K-12: The US Department Education announced two grant competitions with funds authorized by the CARES Act: $180 million for “Rethink K-12 Education Models Grant” and $127.5 million for the “Reimagining Workforce Preparation Grant.” Within the “Rethink” competition, state education agencies can apply for funds under one of three priorities: microgrants for families for access to technology and educational services, statewide virtual learning and course access programs, or new models for providing remote education. Approximately 13-14 grants will be awarded through the “Rethink” competition. The “Reimagining Workforce” competition will award approximately 8-9 grants to expand short-term postsecondary programs and work-based learning programs.
Funding for Minority Serving Institutions of Higher Education: The US Department of Education announced that $1.4 billion in additional CARES Act funding will be directed to Minority Serving Institutions, including Historically Black Colleges and Universities and Tribally Controlled Colleges and Universities, as well as institutions serving low-income students. Institutions may use this funding to cover operational costs, such as lost revenue, reimbursements for prior expenses and payroll. Funds may also be used for technology costs and grants to cover the costs of attendance for eligible students. Schools have until August 1, 2020, to apply for the funds.
Economic Injury Disaster Loan Program: The SBA has begun accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses. According to the SBA website (5/4/20), EIDL applications submitted prior to the lapsed in funding authority will continue to be processed on a first-come, first-served basis.
