JEDE COVID-19 Weekend Update - October 3, 2020 Edition

MAJOR ANNOUNCEMENTS

  • California Fire Update:  The Governor’s Office of Emergency Services released the update below regarding the California Fire situation.

  • Support Economic Recovery:  Lance Hastings, President of the California Manufacturing and Technology Association, and John McLaurin, President of the Pacific Merchant Shipping Association, had their article published in Fox and Hound, To Support Economic Recovery, Lawmakers Must Support California’s Portshttps://www.foxandhoundsdaily.com/2020/10/to-support-economic-recovery-lawmakers-must-support-californias-ports/   Among other statements, Hastings and McLaurin said, “California lawmakers must take a hard look at the causes of market share loss at the ports, the impact of that decline on the state’s jobs and manufacturing base, and the policy changes that need to be enacted to reverse the current trend.”  Also, “There is still time to support California’s global primacy in the manufacturing and goods movement industries. But the state needs to acknowledge the challenge and produce policies that reverse the current trends.” 

  • Farmers to Families Food Box Program:  The US Department of Agriculture announced that more than 100 million food boxes have been distributed through its Farmers to Families Food Box Program.  In addition, the Department previously announced it had entered into contracts with 50 entities for the third round of food box deliveries, which include contracts to purchase up to $1 billion in food authorized by executive order.  https://www.ams.usda.gov/press-release/farmers-families-food-box-program-surpasses-100-million-boxes-delivered

  • Fast Tracking Process Claims:  Insurance Commissioner Ricardo Lara requested “that insurance companies help wildfire survivors who are overwhelmed with the task of navigating the claims process by providing up to 100 percent of personal property coverage limits without a detailed inventory to those who suffered a total loss of their home, similar to previous identical requests in past years.”  He also noted that many “insurance companies have already agreed to the Voluntary Expedited Claims Handling Procedures requested in Commissioner Lara’s August 26, 2020 Notice, which included an initial advance payment for personal property of at least 25 percent of contents coverage without an inventory.”  http://www.insurance.ca.gov/0400-news/0100-press-releases/2020/release095-2020.cfm

  • POLA Reduces its Environmental Impact:  The Port of Los Angeles released its 2019 Inventory of Air Emissions which shows emission reductions of between 5% and 7% compared with 2018.  The announcement also includes information on a full range of emission reductions, including greenhouse gases.  https://www.portoflosangeles.org/references/news_100120_air_emissions_report  

  • Small Business Size Determination: The US Small Business Administration has released new guidance on small business size determinations.  These updated determinations will be used to determine participant eligibility for certain federal programs limited to serving small businesses.  https://www.sba.gov/sites/default/files/2020-10/SBA%20Form%20355%20OMB%20Approved%200345-0101%20fillable-508.pdf

CURRENT GUIDANCE ON COVID-19 AND FIRE RESPONSE AND RECOVERY ACTIONS

  • 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 4 (purple) has the most restrictions and Tier 1 (yellow) has the fewest. 

  • Individuals and Businesses Impacted by Fires:  The Employment Development Department is accepting Federal Disaster Unemployment Assistance applications for workers, business owners and self-employed individuals who lost their jobs or businesses or had their work hours substantially reduced as a result of the wildfires that began in several California counties on August 14, 2020.  https://www.edd.ca.gov/About_EDD/pdf/news-20-43.pdf   Individuals can receive up to $450 per week in benefits for a maximum period of 27 weeks.  Applications can be submitted through this webpage:  https://www.edd.ca.gov/unemployment/UI_Online.htm

  • SBA Fire Disaster Assistance:  The US Small Business Administration has opened a virtual Business Recovery Center and virtual Disaster Loan Outreach Center.  The centers are available Mondays – Fridays from 9:00 a.m. – 6:00 p.m. and can be accessed through this email (FOCWAssistance@sba.gov) or (916) 735-1500.  These services are only available for the California disaster declaration as a result of the wildfires that began Aug. 14, 2020, and not for COVID-19-related assistance.

FEDERAL AND STATE LEGISLATIVE ACTIONS RELATED TO COVID-19, ADDRESING STRUCTIONAL RACISM, AND ECONOMIC RECOVERY

  • Systemic Racism a Public Health Crisis:  The Nevada Legislature passed a resolution declaring systemic racism a public health crisis, which has been exacerbated by the COVID-19 pandemic, and calling for the undertaking of certain actions to address the situation.  Among other steps, Senate Concurrent Resolution 5 requests that federal funding be distributed equitably based upon the percentages of members of the BIPOC communities disproportionately impacted and requests that the Nevada State Legislature incorporate the topics of systemic racism and structures of racial discrimination into the business of the next regular session. 

    • According to NCSL, similar legislation has been introduced in other states, including Arizona, California, Michigan, New Jersey and Ohio. 

    • California State Senator Pan introduced Senate Concurrent Resolution 92, which was still pending in the California Senate Rules Committee when the Legislature convened on September 30, 2020.  Among other actions, the resolution calls that the “Legislature intends to, and urges the Governor to, approach laws and regulations with an antiracist, Health-in-All policy equity-driven focus that interrogates whether policies play a role in upholding or dismantling racist systems and to secure adequate resources to address the crisis.”

  • Asm. Hearing on EDD Strike Team Assessment:  The Assembly Budget Subcommittee 4 is holding an informational hearing, Strike Team Assessment and Recommendations to Improve Employment Development Department.  The hearing is scheduled for October 7, 2020, at 10:30 am.  The agenda and background report are available online, including instructions on how to view the hearing proceedings.  https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Sub.%204%20October%207%202020.pdf

  • New US House of Representatives Stimulus Package:  The US House of Representatives Speaker Pelosi passed a $2.2 trillion stimulus package on October 1, 2020.  This package was scaled back from the $3.4 billion package passed by the House in May 2020, and more than double the size of the last official Senate Republican proposal of $1 billion.  According to news reports, the revised House package includes the following:

    • A $600-per-week supplemental pandemic jobless benefit

    • A second round of $1,200 direct payments to most individuals

    • Scales back the aid package to state and local governments to $436 billion

    • Provides $225 billion to colleges and universities

    • Re-capitalizes the Paycheck Protection Program

  • Governor Newsom signed the following economic, business, and workforce development bills:

  • Governor Newsom vetoed the following economic, business, and workforce development bills:

DATA, SURVEYS, AND ANALYSES

  • Updating the CRA – Comments Requested:  The Federal Reserve Board issued an Advance Notice of Proposed Rulemaking inviting public comment on a proposal to modify the regulations that implement the Community Reinvestment Act (CRA).  According to the announcement, these changes are intended to strengthen, clarify, and tailor the CRA to better reflect current banking practices and the core purpose of the CRA.  https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200921a.htm  An info graphic is available showing the two evaluation frameworks for the proposed separate retail and community development tests. https://www.federalreserve.gov/consumerscommunities/files/cra-anpr-retail-and-community-development-tests.pdf Comments on the proposed rulemaking will be accepted within 120 days of the proposal being printed in the Federal Register.

  • California Economy and Taxes Blog:  The California Legislative Analysts’ Office regularly releases updates to the California Economy and Taxes Blog (https://lao.ca.gov/LAOEconTax), including:

    • State Tax Collections:  August revenue collections from the state’s three largest taxes were ahead of budget projections by $1.7 billion (24%)

    • Income Tax Withholding: California income tax withholding has been a bit volatile in recent weeks. Nonetheless, total collections since late March continue to exceed the comparable period in 2019

    • Taxable Spending: Credit/debit card data suggest California taxable sales continued to grow in August but still remained below January

    • Jobs Report: California recovered 101,900 jobs in August, still down 1.73 million from February

    • New Business Creation: New business creation in California has been surprisingly strong over the last two months

  • CA Completing US Census:  The US Census Bureau maintains a website displaying information on each state’s progress in completing the 2020 Census.  According to the website, as of October 2, California has completed Census forms from 99.7% of all households, with 30.2% of those households reporting through follow-up house-to-house canvassing by official census takers.  California ranked 18th among 50 states in the percentage of households who had responded.  https://2020census.gov/en/response-rates/nrfu.html?utm_campaign=20200920msc20s1ccallnl&utm_medium=email&utm_source=govdelivery   The 2020 Census will conclude data collection operations on October 5, 2020. 

  • Concentrated Health and Wealth Effects in Black Communities:  The federal Reserve released a report, Double Jeopardy: Covid-19’s Concentrated Health and Wealth Effects in Black Communities.  Among other findings, the report states: While the disproportionate effect of the pandemic on businesses owned by individuals of color has been well documented, there is limited research into the causes.  This report examines reasons why businesses with Back-owners have been almost twice as likely to shutter as small firms overall, 41% compared to 22% respectively.  The report identifies three primary findings:  (1) Black-owners firms are disproportionately located within areas of high COVID-19 cases, (2) Black-owned firms are located in areas with the lowest participation rates under the federal Paycheck Protection Program, and (3) Black-owned firms entered the COVID-19 pandemic with weaker cash positions, weaker bank relationships, and preexisting funding gaps.   https://www.newyorkfed.org/medialibrary/media/smallbusiness/DoubleJeopardy_COVID19andBlackOwnedBusinesses

  • State Unemployment Benefit Numbers Released:  EDD released unemployment insurance data for California for the week ending September 19.  https://www.edd.ca.gov/About_EDD/pdf/news-20-47.pdf Unemployment Benefits include Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU).  Among other information, the weekly Unemployment Benefits report stated:

    • 137,016 initial Unemployment Benefit claims were filed for the week ending September 19.

    • Between March 14 and September 19, EDD received 11 million Unemployment Benefit claims.

    • $90 billion has been paid to out-of-work Californians since the start of the pandemic.

  • National Personal Income Data Released:  The US Bureau of Economic Analysis released data showing personal income in the US for August 2020 decreased $543.5 billion (2.7%).  https://www.bea.gov/news/2020/personal-income-and-outlays-august-2020   According to the report, the decrease in personal income in August reflects, among other things, the decrease in unemployment insurance benefits on July 31 due to the expiration of the Federal Pandemic Unemployment Compensation Program which provided a temporary weekly supplemental payment of $600.  A chart detailing the impact of several federal COVID-19 response programs was also released:  https://www.bea.gov/sites/default/files/2020-10/effects-of-selected-federal-pandemic-response-programs-on-personal-income-august-2020.pdf

  • National Unemployment Data Released:  The US Bureau of Labor Statistics released national unemployment figures for September 2020, showing total US nonfarm payroll employment rose by 661,000 and the unemployment rate fell to 7.9%.  These numbers reflect 13.6 million unemployed people in the US with a labor participation rate of 61.7%.  While moving in a positive direction, economists note that the rate of re-employment has slowed considerably this month as compared to the 1.4 million month over gain in additional jobs between July and August 2020.   https://www.bls.gov/news.release/empsit.nr0.htm  The labor force participation rate continued to decrease in September to 61% and is 2.0% lower than in February 2020.  

  • State Unemployment Data:  California unemployment for August 2020 was 11.4%, down 2.1% from July 2020.  For yearly comparison, in August 2019, California unemployment was reported as 3.9%.   State-level data for September 2020 will be available on or after October 15.

GRANTS

  • STEP Awards:  The US Small Business Administration has released 2020 funding amounts for the State Trade Export Promotion (STEP) program.  GO-Biz jointly administers the California STEP program with the California Department of Food and Agriculture.  According to the information provided, California received $900,000 after committing to a $484,614 state match for total of $1.3 million.  Two states received larger STEP grants including Michigan and Washington. https://www.sba.gov/document/support-directory-step-awardees

FALL IS CONFERENCE TIME

  • 2020 Space and Cybersecurity Symposium:  The California Polytechnic State University at San Luis Obispo is hosting the 2020 Space and Cybersecurity Symposium from October 5 to 8, 2020https://calpoly.events.cube365.net/media-hub/scs2020  The Space and Cybersecurity Symposium will feature keynote interviews and panel sessions with leaders from the US Space Force, industry, and higher education.  Among other important issues, speakers will be discussing workforce development, with Deputy Secretary Stewart Knox of the Labor Agency as one of the keynote speakers.  Registration is free and the convening is virtual.

  • CHCC Statewide Convention:  California Hispanic Chamber of Commerce is holding its annual statewide convention October 14 to 16, 2020.  This year’s theme is Momentum.  https://www.chcc2020.com/event/72c24571-abfd-4a8a-984d-c5e9466c5e6b/summary?environment=P2

  • California Retailers Annual Meeting:  The California Retailers Association is holding its annual meeting on October 23, 2020, beginning at 8:00 am.  The meeting will include the election of the association’s Board of Directors, a legislative and regulatory update, briefing on the November ballot initiatives, and a discussion of member priorities for the next legislative session.  https://calretailers.com/cra-annual-meeting-2020/

  • California Economic Summit:  California Forward announced the opening of registration for the 2020 California Economic Summit, which is the ninth annual gathering of private, public, and civic leaders dedicated to building an inclusive and sustainable economy.  The event will be 100% virtual with workshops and general sessions scheduled for December 3 and 4https://summit.caeconomy.org/registration

GOOD NEWS ABOUT SMALL BUSINESS AND ECONOMIC DEVELOPMENT FRIENDS

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

Wildfire - SBA Disaster Assistance
CA Loans (EIDL) Approved (as of 10/01)
14
Dollar Amount of CA Loans (EIDL) Approved (as of 10/01)
$938,200
CA Home Loans Approved (as of 10/01)
132
Dollar Amount of CA Home Loans Approved (as of 10/01)
$15,212,000
Total Dollars Approved (as of 10/01)
$16,150,200
COVID - SBA Disaster Assistance
  • CA Loans (EIDL) Approved (as of 8/15)
533,876
Dollar Amount of CA Loans (EIDL) Approved (as of 8/15)
$33,022,133,987
CA Loan Advances (EIDL) Approved (as of 7/15)
809,792
Dollar Amount of CA Loan Advances (EIDL) Approved (as of 7/15)
$2,666,662,000
Payment Protection Plan (as of 8/8)
5,212,128
Payment Protection Plan Approved (total) (as of 7/31)
$525,012,201,124
Great Plates Delivered
Meals served as of 10/01
11,497,222
Individuals Served This Week as of 10/01*
49.043
Food Providers Contracted as of 10/01*
763
*Data received from Great Plates Data Portal updated twice per week. 
 
 
 
 

 

 

 

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