Eviction Moratorium: The Judicial Council of California voted to end two temporary emergency rules governing evictions and judicial foreclosures at midnight on September 1, 2020. Approved by a 19-to-1 vote, the new order provides the Legislature and Governor a clear deadline for addressing the issue. The Judicial Council originally approved the temporary emergency rules staying eviction and foreclosure proceedings on April 6. https://newsroom.courts.ca.gov/news/judicial-council-votes-to-end-temporary-emergency-rules-on-evictions-foreclosures-sept-1
Learning Loss Mitigation Funds and Broadband Mandates: Governor Newsom announced the release of $5.4 billion in learning loss mitigation funds to local educational agencies. https://www.gov.ca.gov/2020/08/14/38666/ The Governor also signed an executive order (https://www.gov.ca.gov/wp-content/uploads/2020/08/8.14.20-EO-N-73-20-text.pdf) directing state agencies across government to bridge the digital divide, as an additional step in providing computing devices and hotspots to students across the state. Among other actions, the executive order requires the development of a new State Broadband Action Plan by December 31, 2020; requests the California Public Utilities Commission (CPUC) to lead data aggregation and mapping efforts; requires GO-Biz to create a list of funding sources to support broadband, equipment, and digital literacy; requests the CPUC to seek opportunities to use programs under its jurisdiction to accelerate broadband deployment and to leverage utility infrastructure to increase access to existing fiber and cost-effectively deploy new fiber; and directs GO-Biz to coordinate the outreach efforts of existing statewide programs and institutions to inform residents of affordable Internet service offerings. Attached is a PowerPoint from the Governor’s press conference discussing the state’s response to COVID-19, including plans for students getting back to school.
Connecting with Economic Development Peers: CALED is helping to connect economic development stakeholders to existing regional convenings. Rather than creating more meetings, CALED is working on creating an interactive map of already-existing economic development meetings so stakeholders can quickly find out about them and participate. CALED is proposing two questions:
Do you lead/convene a regular meeting of economic developers in your region? If yes, can you please reply to Laura@caled.org with the details of these meetings, such as who can participate, the meeting schedule, and who someone should reach out to should they want to participate.
Would you like to lead/convene a regular meeting of economic developers in your region? If yes, please reply to Laura@caled.org with your contact info and region of the state. In the event that we cannot identify an already-existing peer network in your region, we will assist you in creating one. Again, since we do not want to duplicate efforts, if we find a group in your region, we’ll connect you to them versus creating a new one.
GOOD NEWS ABOUT SMALL BUSINESS AND ECONOMIC DEVELOPMENT FRIENDS
PolicyLink Advisor: PolicyLink announced the selection of Ashleigh Gardere as Senior Advisor to the President and CEO and the new Director of the All-In Cities Initiative. Prior to joining PolicyLink, Ashleigh served as Executive Vice President and Chief Operating Officer at the New Orleans Business Alliance, the city’s economic development agency.
Climate & Resiliency Executive Task Force: California Insurance Commissioner Ricardo Lara was named Co-Chair of the National Association of Insurance Commissioners (NAIC) Climate & Resiliency Executive Task Force. According to the announcement, the newly created task force, a Lara proposal, will act as a coordinating and cross-cutting group on climate issues. Earlier this year, the NAIC identified climate risk as a top strategic focus for insurance regulators in 2020. http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release073-2020.cfm
CWDB Appointment: Governor Newsom announced the appointment of Maurice Emsellem to the position of senior advisor at the California Labor and Workforce Development Agency. Emsellem has been program director at the National Employment Law Project since 2015, where he has held several positions since 1990, including policy director, program director and staff attorney.
Nancy Farias to the position of chief deputy director of external affairs, legislation and policy. Farias has served as director of government relations at SEIU Local 1000 since 2017. She was deputy chief of staff at the Office of California State Senator Henry Stern from 2016 to 2017. Farias was district director at the Office of California State Assemblymember Mike Gatto from 2015 to 2017.
Kevin Matulich to the position of deputy director of legislative affairs. Matulich has been assistant director at the California Employment Development Department since 2019, where he served as assistant director of policy and external affairs from 2017 to 2019 and special assistant to the director from 2014 to 2017.
Carole Vigne to the position of general counsel and deputy director. Vigne has been senior staff attorney and program director of the Wage Protection Program for Legal Aid at Work since 2014, where she was a staff attorney from 2011 to 2014 and a Skadden fellow from 2007 to 2009.
Carol D. Williams to the position of chief deputy director of operations. Williams has served as chief of the Filing Division at the California Franchise Tax Board since 2015, and was chief of the Accounts Receivable Management Division from 2011 to 2015 and director of the Revenue Recovery Services Bureau from 2006 to 2011.
Industrial Relations Appointment: Governor Newsom announced the appointment of Deanna Ping to the position of chief deputy director of the California Department of Industrial Relations. Ping has served as a director of market development at Merit International since 2019. She was a finance budget analyst at the California Department of Finance from 2015 to 2016. Ping was a committee consultant at the California State Senate Committee on Labor and Industrial Relations from 2012 to 2015. https://www.gov.ca.gov/2020/08/14/governor-newsom-announces-appointments-8-14-20/
State Unemployment Insurance Numbers Released: EDD released unemployment insurance data for California for the week ending August 8. https://www.edd.ca.gov/About_EDD/pdf/news-20-38.pdf Among other information, the weekly UI report stated:
309,946 UI and Pandemic Unemployment Assistance (PUA) claims were filed for the week ending August 8.
Between March 14 and August 8, EDD received 8.3 million UI and PAU claims.
$63.9 billion has been paid to out-of-work Californians since start of pandemic.
National Unemployment Data: The US Bureau of Labor Statistics released state unemployment figures for July 2020, showing total US nonfarm payroll employment rose by 1.8 million and the unemployment rate fell to 10.2%. Notable job gains occurred in leisure and hospitality (1/3 of total increase), government, retail trade, professional and business services, other services, and health care. The labor force participation rate of 61.4% was substantially similar to June. The number of persons not in the labor force who currently want a job declined by another 463,000 individuals in June, bringing the total number to 7.7 million individuals (2.8 million higher than in February). State-level data for July 2020 will be available on or around August 15 (not released yet) and the August 2020 data will be released September 6, 2020.
Inequality and Economic Growth: The Federal Reserve Board released a working paper, Market Power, Inequality, and Financial Instability. The paper shows the development of a theoretical model that is used to analyze the transitional dynamics of an economy undergoing structural changes. The outcome of the research shows that the rise of firms’ market power in both product and labor markets can be an important driver behind, among other things, the increase in the profit share, the increase in income inequality, the increase in credit-to-GDP ratio, and the associated rise in financial instability. The report also shows that redistribution policies that moderate income inequality can be used as effective tools in preventing financial crises. https://www.federalreserve.gov/econres/feds/files/2020057pap.pdf
July Industrial Productivity: The Federal Reserve Board released July 2020 industrial production and capacity data. According to the report, total industrial production rose 3.0% in July following a 5.7% rise in June. However, total US productivity remains 8.4% below its pre-pandemic February 2020 level. In July 2020, the capacity utilization for the industrial sector increased 2.1% to 70.6%. https://www.federalreserve.gov/releases/g17/Current/default.htm
Credit for Prior Learning: California Competes, the education nonprofit, released a new report, Credit for Prior Learning: Leveraging Past Learning to Close Present-Day Equity Gaps. According to the announcement, the report explores how the California Community Colleges, the California State University, and the University of California currently approach credit for prior learning and why the approach should be more widely and consistently implemented in California to support the state’s economic recovery. https://californiacompetes.org/assets/general-files/CACompetes_CPL-Brief_Final_8_11.pdf
Small business Grants Delayed: The US Department of Energy announced the delay of its SBIR/STTR, which was originally scheduled to be issued Monday, August 10, 2020. The SBIR/STTR announcement is expected to go out the week of August 24th pending completion of the internal DOE administrative review process. https://content.govdelivery.com/accounts/USDOESCIENCE/bulletins/299f3b7
UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS
Small Business Lending Fund: The US Treasury issued its monthly report on the activities of the Small Business Lending Fund, which was created through the enactment of the Small Business Jobs Act of 2010, for the purpose of encouraging lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. As of June 1, 2020, 321 institutions with aggregate investments of $3.93 billion have fully redeemed their SBLF Treasury investment and exited the program, and 4 institutions have partially redeemed $13.5 million (or 62% of their SBLF securities) while continuing to participate in the program. https://home.treasury.gov/system/files/256/LGR-July-2020.pdf Fact sheet on the Small Business Lending Fund: https://home.treasury.gov/system/files/256/SBLF_Fact_Sheet_03-28-11.pdf
Main Street Lending Program: The Federal Reserve issued its required report to the US Congress on the activities of the Main Street Lending Program. As of August 1, 2020, the total outstanding amount of loans was $76,855,000, backed by $37.5 billion in pledged collateral. “The Board continues to expect that the MSLP will not result in losses to the Federal Reserve.” https://www.federalreserve.gov/publications/files/mself-msnlf-msplf-20200806.pdf
PPP Aggregate-Level Data Update: The US Small Business Administration released program utilization information for the Paycheck Protection Program (PPP). As of August 8, 5.2 million PPP loans have been approved in the US for a total of $525 billion. In California, 623,360 PPP loans have been approved for a total of $68.6 billion. Link to a PowerPoint displaying data for loan activity through 8/8/2020: https://www.sba.gov/sites/default/files/2020-08/PPP_Report%20-%202020-08-10.pdf
EIDL Aggregate-Level Data Update: The US Small Business Administration released program utilization information for the Economic Injury Disaster Loan (EIDL). As of August 8, 3.3 million EIDL loans have been approved in the US for a total of $178 billion. In California, 515,280 EIDL loans have been approved for a total of $31.9 billion. Link to a PowerPoint displaying data for loan activity through 08/08/2020: https://www.sba.gov/document/report-covid-19-eidl-loans-report-8-08-20
SBA Weekly Lending Reports: The US Small Business Administration (SBA) released its weekly lending report for the week ending August 7, 2020. Information includes race, ethnicity, gender, and veteran participation in the SBA 7(a), 504, and Advantage Loan Programs. https://www.sba.gov/document/report-2020-weekly-lending-reports
CA Small Business Loans: The Governor’s Office of Emergency Services received updates from the US Small Business Administration on small businesses that are utilizing the two federal disaster loan programs, the Economic Injury Disaster Loan and Paycheck Protection Program.
US Small Business Administration Disaster Assistance
CA Loans (EIDL) Approved (as of 7/27)
469,484
Dollar Amount of CA Loans (EIDL) Approved (as of 7/27)
$29,697,072,596
CA Loan Advances (EIDL) Approved (as of 7/15)
809,792
Dollar Amount of CA Loan Advances (EIDL) Approved (as of 7/15)
