JEDE COVID-19 Weekend Update - December 18, 2020, Edition

MAJOR ANNOUNCEMENTS

  • Unprecedented Surge in COVID-19 Cases Continues:   The most current CalOES status update is available here.

  • Califoria Legislature Delays Return:  President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon issued a joint statement regardng their decision to delay the reconvening of the Legislature from Janaury 4 to January 11, 2021:

    • “With the number of COVID-19 cases reaching all-time highs and in an effort to keep members, Legislative staff, and all staff in the Capitol as safe as possible, both the Assembly and Senate have decided to move the date of our return to session to January 11, 2021,” Pro Tem Atkins and Speaker Rendon said in a joint statement. “As the holidays get underway, we hope all Californians will continue to follow public health guidelines in an effort to mitigate the spread of this virus.”
  • Tax Return and Payment Extensions:  Governor Newsom issued an executive order (https://www.gov.ca.gov/wp-content/uploads/2020/12/12.14.20-EO-N-84-20-COVID-19-text.pdf) addressing a variety of issues in response to theCOVID-19 pandemic, including providing a 90-day extension on tax returns and tax payments for small businesses and updating Cal/OSHA requirements (https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/COVID-19-Quarantine.aspx)  related to quarantine guidelines.

  • UI Benefits Running Out:  The California Employment Development Department issued notices to 3 million current unemployment receipients that their benefts will expire on December 26 unless the US Congress approves an extension. https://www.edd.ca.gov/About_EDD/pdf/news-20-66.pdf  According to EDD, about half of these individuals are receiving Pandemic Unemployment Assistance (PUA) benefits while the other half are receiving Pandemic Emergency Unemployment Compensation (PEUC) benefits.  The notices also include information about other resources that are available to assist individuals needing additional help due to the expiration of these programs, including CalFresh.  Under an earlier estimate (https://www.edd.ca.gov/About_EDD/pdf/news-20-65.pdf), the expiration of these benefits impacted 750,000 people in California. 

    • Program Descriptions:  PUA is a federal CARES Act program designed to help individuals that are not otherwise eligible for traditional unemployment benefits, including the self-employed and independent contractors.  The PEUC extension provides up to 13 additional weeks of benefits for individuals who have exhausted their 26 weeks of regular UI benefits. 

    • EDD CARES Act Webpagehttps://edd.ca.gov/about_edd/coronavirus-2019/cares-act.htm

    • Countercyclical Capital Buffer:  The Federal Reserve Board voted to sustain the Countercyclical Capital Buffer (CCyB) at the current level of 0 percent. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201218c.htm   According to the announcement, this determination is based on and is consistent with the Board's policy statement for setting the CCyB for private-sector credit exposures located in the US.  “The buffer is a macroprudential tool that can be used to increase the resilience of the financial system by raising capital requirements on large banking organizations when there is an elevated risk of above-normal future losses and when the banking organizations for which capital requirements would be raised by the buffer are exposed to or are contributing to this elevated risk--either directly or indirectly. The buffer could also help moderate fluctuations in the supply of credit. The CCyB is designed to be released when economic conditions deteriorate, in order to support lending and economic activity more broadly.”

  • Update on Federal Stimulus Package:  According to news reports, the US Congress is close to a deal on a $900 billion stimulus package.  Below is a list of key provisions being discussed:

    • NEW - Fed Reserve Restrictions:  This is a new Republican and Administration proposal, which would prohibit the Federal Reserve from using CARES Act and other emergency funds to address weaknesses in the US financial system.  Most recently, Treasury Secretary Mnuchin shut down more than $400 billion in programs, as of December 31, 2020.  The proposal being advanced would preclude the Federal Reserve from using these funds for other emergency purposes.  Democrats oppose this provision.

    • Supplemental UI Payment:  Provide enhanced federal unemployment benefits at a rate of $300 per week – Appears to have general agreement, but the duration of the extension is still under discussion.

    • PUA Extension:  Extend expiring UI benefits and the Pandemic Unemployment Assistance Program, which expires on December 26, 2020 – Appears to have general agreement, but the duration of the extension is still under discussion.

    • Stimulus Payments:  $600 stimulus checks with an additional $600 per child – Appears to have general agreement, but Democrats see this as part of a large deal.

    • Liability Waiver:  A six-month moratorium on coronavirus-related lawsuits – important to Republicans and the Administration – Democrats previously stated they are opposed to this provision – Mnuchin is quoted as saying that this provision is linked to the state and local funding, either both are in or both are out

    • State and Local Funding:  $160 billion in funding for state and local governments – ongoing discussions include making this appropriation higher

    • Small Business Funding:  $288 billion in funding to support small business, including additional Paycheck Protection Program (PPP) funds – all groups seem to agree on more PPP funding

    • Re-Open Schools:  $82 billion in education funding – Appears to have general agreement 

    • Vaccine Deployment:  $16 billion for vaccine development and distribution as well as contact tracing and COVID -19 testing – has not been discussed in recent days and  does not appear to be included within the Republican and Administration’s proposal

    • USPS:  $10 billion for the US Postal Service – included in the initial centrist Senate proposal – does not appear that it has been discussed in recent days

    • Student Loan Relief:  $4 billion for student loan relief – included in the initial centrist Senate proposal, but does not appear to be included in the Republican and Administration’s proposal

  • Computer Security Breaches:  Federal financial regulatory agencies released a proposal for public comment that requires a supervised banking organization to notify their primary federal regulator within 36 hours of a computer security incident.”  https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201218a.htm  The proposed rule is intended to provide an early warning of significant computer security incidents Public comments are accepted within 90 days of its publication (https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20201218a1.pdf) in the Federal Register.  Federal financial regulatory agencies include: The Office of the Comptroller of the Currency, Treasury (OCC); the Board of Governors of the Federal Reserve System (Board); and the Federal Deposit Insurance Corporation (FDIC).

  • CA Ranks First in Energy Efficiency:  The American Council for an Energy-Efficient Economy issued its annual national ranking, the 2020 State Energy Efficiency Scorecard. https://www.aceee.org/press-release/2020/12/2020-state-energy-efficiency-scorecard  California, for the first time in four years, ranks first.  

SMALL BUSINESS NEWS YOU CAN USE

DATA, SURVEYS, AND ANALYSES

  • November US Employment Data:  US Bureau of Labor Statistics released national-level employment data for November 2020.  https://www.dol.gov/newsroom/economicdata/empsit_12042020.pdf  According to the report, total US nonfarm payroll employment rose by 245,000 jobs in November, reflecting a 6.7% unemployment rate (down 8% since the high in April 2020).  In releasing the data, the BLS stated:  “However, the pace of improvement in the labor market has moderated in recent months.  In November, notable job gains occurred in transportation and warehousing, professional and business services, and health care.  Employment declined in government and retail trade.”

  • November California Employment Data:  The Employment Development Department released state-level data for November 2020.  https://www.labormarketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf  According to the announcement, California’s unemployment rate was 8.2% in November (down 0.8% from the prior month and X% from April 2020). Nonfarm payrolls gained 57,100 jobs in November with Leisure and Hospitality reporting the largest gains (up 27,800 from the prior month).  Jobs in the Government sector were reported as having the largest loss (down 10,200 from the prior month).  Unemployment among Blacks and Latinx remained above 11%.

    • GO-Biz and Labor Agency Joint Statement on the Release of November 2020 Employment Data:  The Director of the Governor’s Office of Business and Economic Development (GO-Biz), Dee Dee Myers and California’s Labor Secretary, Julie A. Su issued the following statement upon the release of the November 2020 state employment data:  "With hope now literally in sight as the vaccine is rolled out, we’re continuing our fight to help businesses and working people in California get back on their feet. But as the state faces the ongoing challenge of this pandemic-induced recession, we need to provide financial resources and other support to people so they can stand up their businesses, create jobs, and support their families as we put the economy back together in an equitable and sustainable way. We call on the federal government to do its part to help us recover."

  • State Unemployment Benefit Data:  The Employment Development Department (EDD) released new unemployment insurance data for California on December 12, 2020.  https://www.edd.ca.gov/newsroom.htm   Among other information, the weekly Unemployment Benefits report for the period prior to the shutdown states:

    • 38,778 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims were filed for the week ending December 12, 2020.

    • Over 10.3 million initial unemployment benefit claims have been filed with EDD between March 14 and December 12, 2020.

    • $108 billion has been paid to out-of-work Californians since the start of the pandemic.  https://www.edd.ca.gov/About_EDD/pdf/news-20-61.pdf

  • Analysis of CA Monthly Employment Report:  Beacon Economic has released its monthly employment report, which links econometric predictions to data released by the US Bureau of Labor Statistics and the California Employment Development Department.  The Beacon Employment Report, released in partnership with the UC Riverside Business School Center for Forecasting, uses seasonally adjusted numbers to identify trends and insights within data.  https://beaconecon.com/publications/employment-report/  

  • Economic Status of Small Business:  The US Office of Small Business Advocacy released an Economic Bulletin on the status of small businesses during the pandemic.  https://cdn.advocacy.sba.gov/wp-content/uploads/2020/12/08111415/December-Economic-Bulletin.pdf   A few highlights include:

    • While there was little change in the total number of self-employed persons, their income declined 13% annualized in the second quarter of 2020. According to the report, this is the largest quarterly decline since quarterly data began to be tracked in 1947).  Incomes, at the aggregate-level, are reported to have recovered in the third quarter. 

    • Net new job growth was strongest among small firms (<500 employees) from 2010 to 2019, accounting for 63% of the private net job creation.  These small firms employee about 50% of all workers.  In 2020, small businesses continued play to play an important role within communities having a net job loss of 4.8 million vs 5.3 million for large firms. 

    • While business openings have been relatively stable for fifteen years, the number of new business applications have spiked in 2020.  The specific source of this increase (new or reformation of existing business) is unclear and the next few months will provide greater clarity.  

GRANTS

  • New Federal Labor Initiative:  The US Department of Labor announced a new initiative designed to assist states in to increase employment opportunities for people with mental health conditions.  https://www.dol.gov/newsroom/releases/odep/odep20201216  DOL will convene a technical working group to advise on the project.

  • CDBG CARES Act Funds:  The California Department of Housing and Community Development announced the release of the Community Development Block Grant - Coronavirus 2 and 3 (CDBG-CV) Notice of Funding Availability (NOFA) for approximately: $54.4 million in new funds from Round 2 and $16.8 million from Round 3.  https://www.hcd.ca.gov/grants-funding/active-funding/cdbg.shtml#funding

CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS

[This is a “quick-source” section that includes new and previously provided information.]
  • Unprecedented Surge in COVID-19 Cases Continues:  Governor Newsom issued a Regional Stay at Home Order that will be triggered if Intensive Care Unit (ICU) capacity drops below 15% within a given region.  The Order designates five regions, which cover all areas of the state.  https://www.gov.ca.gov/wp-content/uploads/2020/12/12.3.20-Stay-at-Home-Order-ICU-Scenario.pdf

    • Regional Stay at Home Orders become effective within 48 hours and remain in place for at least three weeks.  Supplemental Guidance to the Regional Stay at Home Order. Under the Regional Stay at Home Order:

      • Gatherings of any size are prohibited and all operations must close except for critical infrastructure and retail.

      • There are also requirements for 100% masking and physical distancing. 

      • Existing state guidance regarding K-12 schools is not impacted.

      • The Regional Stay at Home Order serves as an overlay to the Blueprint for a Safer Economy and is designed to intercede quickly to avoid a health disaster. 

    • Status Report:  Currently four of the five regions are under the Regional Stay at Home Order, which is triggered when ICU capacity is less than 15%. Northern California (21% ICU capacity), Bay Area (12.8%), Greater Sacramento (14.5%), San Joaquin Valley (0.0%), and Southern California (0.0%). 

    • The five regions are designated as follows:

      • Northern California:  Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Shasta, Siskiyou, Tehama, Trinity

      • Bay Area:  Alameda, Contra Costa, Marin, Monterey, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma

      • Greater Sacramento:  Alpine, Amador, Butte, Colusa, El Dorado, Nevada, Placer, Plumas, Sacramento, Sierra, Sutter, Yolo, Yuba

      • San Joaquin Valley:  Calaveras, Fresno, Kern, Kings, Madera, Mariposa, Merced, San Benito, San Joaquin, Stanislaus, Tulare, Tuolumne

      • Southern California:  Imperial, Inyo, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Ventura

  • Blueprint for a Safer Economy:  Businesses can check out the status of the reopening of their county through the Blueprint for a Safer Economy (https://covid19.ca.gov/safer-economy/). This is the state’s four tier reopening plan.  Tier 1 (purple) has the most restrictions and Tier 4 (yellow) has the fewest. 

  • Updated August Stay-at Home Orderhttps://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID-19/8-28-20_Order-Plan-Reducing-COVID19-Adjusting-Permitted-Sectors-Signed.pdf

  • Updated Industry Guidancehttps://covid19.ca.gov/industry-guidance/ 

  • CalOSHA Guidelines Finalized:  Office of Administrative Law has finalized OSHA’s new regulations for COVID-19.  https://www.dir.ca.gov/OSHSB/documents/COVID-19-Prevention-Emergency-txtbrdconsider.pdf?source=email

  • Shop Safe Shop Local:  GO-Biz is leading a campaign to remind Californians to shop local and help small businesses prepare for the business realities of COVID-19.  The #ShopSafeShopLocal website highlights free / discounted resources to help small businesses get digital, find e-commerce tools, learn more about industry guidance, locate small business centers, and access PPE.  https://business.ca.gov/shopsafeshoplocal/

  • Safely Making Web Platform:  California manufacturers who produce PPE, including face masks and gloves, can advertise their wares on https://www.safelymakingca.org/.  The website is a joint effort by the California Manufacturers and Technology Association (CMTA) and the State of California.  A manufacturer does not have to be a member of CMTA to participate.  To apply, manufacturers should complete this form.  At his September 9, 2020, press conference, Governor Newsom announced that the web platform currently included 450 California manufacturers.  

STATUS REPORTS ON SMALL BUSINESS LENDING 

[This is a “quick-source” section that includes new and previously provided information.]
(4558-DR-CA) Wildfire - SBA Disaster Assistance (12/17)
CA Loans (EIDL) Approved
48
Dollar Amount of CA Loans (EIDL) Approved      
$4,288,700
CA Home Loans Approved
418
Dollar Amount of CA Home Loans Approved
$50,756,800
Total Dollars Approved
$55,045,500
(4569-DR-CA) Wildfire - SBA Disaster Assistance (12/17)
CA Loans (EIDL) Approved
6
Dollar Amount of CA Loans (EIDL) Approved      
$494,300
CA Home Loans Approved
95
Dollar Amount of CA Home Loans Approved
$11,761,200
Total Dollars Approved

$12,255,500

  • Small Business Disaster Loan Guarantee Program:  The Small Business Finance Center at the California Infrastructure and Economic Development Bank administers a credit enhancement (loan guarantee) as a way to encourage traditional and mission-driven lenders to loan money to small businesses who have been impacted by a disaster.  Below is the most recent program activity.

State Small Business Disaster Loan Guarantee Program (November 2020)
 
Conditionally Approved
Loan Amount
Guarantee Amount
Amount Encumbered
Employees
Total
757
$24,951,562
$23,581,011
$11,790,506
3586
The IBank provides the Joint Legislative Budget Committee an update monthly.
  • SBA Weekly Lending Report on Race and Ethnicity of Clients:  The US Small Business Administration’s most recent weekly lending report for its core SBA products is for the week ending December 4, 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 

  • Tracking UI Benefits:  The California Employment Development Department (EDD) launched identity verification technology to help address the backlog of unprocessed unemployment benefit applications, including the Pandemic Unemployment Assistance. On December 11, EDD released this report on the status of addressing the backlog:  https://www.edd.ca.gov/About_EDD/pdf/CUIC_337_Legislative_Report_121120.pdf  Progress in eliminating the backlog are also tracked through these two data dashboards:

    • Unemployment Initial Claims Backlog Dashboard:  As of December 16, 2020, 370, 285 individuals have been waiting more than 21 days for an initial payment or to be notified that they do not qualify for benefits.

    • Unemployment Continued Claims Backlog Dashboard:  As of December 16, 2020, 312, 928 individuals received at least one payment and are now waiting more than 21 days for further processing of payment or disqualification in this week-by-week eligibility based program.

  • Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA granted a 30-day extension to allow the program to continue to January 7, 2020.  Interested restaurants and food providers are encouraged to fill out this form: https://state-of-california-agency.forms.fm/great-plates-delivered-food-provider-interest-form/forms/7917   

Great Plates Delivered (12/16)
Meals served as of 12/07
20,403,255
Individuals Served This Week
40,669
Food Providers Contracted
807
Data received from Great Plates Data Portal updated on Sundays.
 
 
 
 

 

 

 

SHOP SMALL FOR THE 2020 HOLIDAYS – AND THE 2021 HOLIDAYS WITH VALENTINES DAY ONLY 8 WEEKS AWAY

  • Digital Pop-Up Festival and E-Commerce Bootcamps:  The California Office of the Small Business Advocate, which is located within GO-Biz, has been working with stakeholder partners for the last several months to help small businesses prepare for online retail and services though their Get Digital CA! initiative.  https://business.ca.gov/advantages/small-business-innovation-and-entrepreneurship/get-digital-ca/  The website includes continually updated information and links to partner-hosted digital bootcamps; the Technology Learning Center; discounts, free tools, and resources in the Shop Safe Shop Local website; and information on Digital Pop-Up Festivals. Entrepreneurs can check-out these successful pop-up shopping experiences for best practices and inspiration for their own events:  

    • Los Angeles Love Local Pop-Up Festival was held on November 18.  IG handle @timeoutla

    • The Keep It Oakland Virtual Bazaar was held on December 9.  IG handle @keepitoakland18

    • The Fresno Virtual Holiday Market was held on December 10.  IG handle @evalongoriafoundation

    • The Stockton Strong Digital Festival was held on December 11.  IG handle @stockmarketca

  • Holiday Gift Guides

    • CAMEO is hosting a webpage with links to the holiday gift guides of 14 microenterprise organizations,  https://cameonetwork.org/news/cameo-holiday-gift-guide-2020/

    • California Capital is hosting “What Now What Next,” an online marketplace for women-owned businesses to share products and services, as well as access resources that can help the businesses be successful.  https://cacapital.org/online-market-place/

    • Small Business Majority announced they will be launching a Holiday Gift Guide in time for Small Business Saturday. Inclusion in the Holiday Gift Guide is free to qualifying small businesses. Approved applicants will be featured on Small Business Majority’s website from November 16, 2020, through January 1, 2021, and will also receive a toolkit to help participating small businesses share the Holiday Gift Guide with their customers.  https://go.smallbusinessmajority.org/l/229072/2020-10-13/9w1wn  In order to be considered, a small business must:  apply by November 9, 2020; have less than 100 employees; be located in the US; have a website where people can find information about their products or services; and have a “giftable” product or service, including gift cards.

    • The Inland Empire Chamber of Commerce announced that Spectrum Reach is promoting a nationwide campaign to encourage consumers to support local businesses during the upcoming holiday season.  Spectrum Reach will be creating an interactive online directory to help people identify local businesses.  Participation is free.  https://www.rebuildmytown.com/supportlocal/socal-inland?utm_source=inland_empire_business_journal&utm_medium=affiliate&utm_content=mosaic_phase1_socal_email&utm_campaign=80002020q4locmosaicp1  According to the announcement, Spectrum Reach will support this campaign with more than $1M in advertising nationwide.

    • REDF is already hosting a Social Enterprise Gift Guide for products produced from around the US, including the Homeless Garden Project in Santa Cruz and Vena Vena Handcrafted, which was launched from a homeless shelter in downtown LA.  http://socialenterprisegiftguide.com/

FREE WEBINARS

JEDE maintains a list of on-demand webinars on our website.  You can access this list at https://ajed.assembly.ca.gov/content/demand-webinars-available-24-7.  Webinars cover a range of topics, including federal disaster programs, marketing during the COVID-19 pandemic, and accessing international markets.

 

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