JEDE COVID-19 Weekly Update - March 9 Edition

MAJOR ANNOUNCEMENTS

  • California COVID-19 Update:   Below is the most current CalOES status update.  www.covid19.ca.gov

  • California State of the State:  Governor Gavin Newsom will deliver his third State of the State Address on Tuesday at 6 p.m. in a virtual presentation to the California Legislature.  The speech can be viewed at:  @CAgovernor Twitter page, California Governor Facebook page and California Governor YouTube page.  

  • California Reopening

  • Federal Stimulus Bill Passes House:  The US House of the Representatives passed a $1.9 billion COVID-19 stimulus package on February 27, 21, with all but one Democrat voting yes, and every Republican voted no. The US Senate passed with bill (50 to 49) with minor amendments on March 6, 2021, with all Republicans voting no.  The House voted on the Senate amendments as soon as Wednesday.  Congress plans to complete its work by March 14, the day the current extended federal unemployment insurance benefits end.   Key aspects of H.R. 1319 – American Rescue Plan Act of 2021 include:

    • $1,400 stimulus checks for individuals making up to $75,000 and $2,800 for couples making up to $150,000, plus $1,400 for each dependent.  This funding, added to the $600 approved in December 2020, constitute the $2,000 Economic Recovery Payments President Biden proposed in the American Rescue Plan 

      • For Single Taxpayer: Full payment below $75,000; cutoff at $80,000 

      • Taxpayers Filing Head of Household:  Full payment below $112,500; cutoff at $120,000

      • Married, Filing Jointly:  Full payment below $150,000; cutoff at $160,000

    • Adding $300 to weekly unemployment checks

    • Extending Unemployment Insurance and Pandemic Unemployment Assistance benefits from 50 weeks to 74 weeks (March 14 to September 6, 2021)

    • Expansion of the federal Earned Income Tax Credit, including certain elderly and childless adults

    • Increase in qualified family leave wages under the Paid Family Leave Tax Credit from $10,000 to $12,000

    • $350 billion for grants to states, territories, tribal governments, cities, and counties

    • $14.9 billion for the Child Care and Development Block Grant

    • $25 billion for the Restaurant Revitalization Fund to support restaurants that have experienced a revenue loss due to COVID-19, including: a food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink

    • $15 billion for a targeted cash advance under the SBA Economic Injury Disaster Loan Program

    • $10 billion and reauthorization of the State Small Business Credit Initiative Act of 2010

      • Includes a separate allocations for tribal governments and business enterprises owned and controlled by socially and economically disadvantaged individuals

      • Requires states to provide a plan detailing how minority depository institutions and community development financial institutions will be encouraged to participate in state programs

      • Provide funds to states to carry out a technical assistance plan under which a state will provide legal, accounting, and financial advisory services, either directly or contracted with legal, accounting, and financial advisory firms, with priority given to business enterprises owned and controlled by socially and economically disadvantaged individuals, as well as to very small businesses

    • $7.25 billion for the Paycheck Protection Plan, plus changes to the definition on nonprofit, second draw loans, forgiveness

    • $3 billion Economic Development Administration

    • $1.2 billion for Shuttered Venue Operators, including $500,000 for technical assistance

    • $175 million for the Community Navigator Pilot Program which funds community navigator services provided through nonprofits, which includes the outreach, education, and technical assistance provided by community navigators that target eligible businesses to increase awareness of, and participation in, programs of the Small Business Administration

    • Provide tax exemption for student loan forgiveness previously authorized

  • Future of Work Commission Report is Out:  California’s Future of Work Commission released its final report, including recommendations intended to support inclusive economic growth.  https://mailchi.mp/953225cea2d4/californias-future-of-work-commission-issues-final-report-calling-for-new-social-compact?e=d41cf7cf1a   The Future of Work Commission was established in May 2019 through an executive order which, in part, reads:  The order states, “The Future of Work Commission’s primary mission shall be to study, understand, analyze, and make recommendations regarding the kinds of jobs Californians could have in the decades to come; the impact of technology on work, workers, employers, jobs and society; methods of promoting better job quality, wages, and working conditions through technology; modernizing worker safety net protections; and the best way to preserve good jobs, ready the workforce for the jobs of the future through lifelong learning, and ensure shared prosperity for all.”

  • International Cooperation Agreement:  California and Japan Bank for International Cooperation signed an agreement to expand cooperation in the areas of fields of environmental protection, clean mobility, energy production and storage, energy efficiency codes and standards, water, logistics and smart cities. https://ltg.ca.gov/2021/03/04/california-and-japan-bank-for-international-cooperation-ratify-agreement-to-expand-relations-in-sustainability-and-economic-development/  Governor Newsom has set of goal of powering the state with 100% carbon-free electricity and achieving carbon neutrality by 2045. This agreement is intended to support the state’s obtainment of key environmental and sustainability goals.  The four colleges have been selected to participate with student recruitment beginning in the spring of 2021.  The program is expected to scale to 20 colleges in 2022.  The initial four colleges include: 

    • Modesto Community College: Modesto, Yosemite Community College District

    • Chaffey Community College: Rancho Cucamonga, Chaffey Community College District

    • Sierra Community College: Rocklin, Sierra Joint Community College District

    • College of the Desert: Palm Desert, Desert Community College District

  • Invention and Inclusive Innovation:  The California Community Colleges Chancellor’s Office launched Invention and Inclusive Innovation (I3) initiative through its Workforce and Economic Development Division.  https://www.cccco.edu/About-Us/News-and-Media/Press-Releases/2021-new-initiative-to-catalyze-innovation  The purpose of the initiative is to “catalyze innovation and invention to solve social problems that existed before COVID-19 and those that have been created or amplified by the pandemic.”  The initiative is a collaboration between the Chancellor’s Office and the Lemelson-MIT Program.

  • Elevating Women in the Recovery:  Senior Advisor to the Governor and Director of the Governor’s Office of Business and Economic Development Dee Dee Myers joined with California First Partner Jennifer Siebel Newsom to pen an article for Comstock Magazine highlighting the importance of addressing the disparate impact of the pandemic on female workers and women entrepreneurs.  https://www.comstocksmag.com/commentary/economic-recovery-must-focus-women  “According to the Bureau of Labor Statistics data, almost four times as many women than men left the workforce this January: 275,000 to 71,000. What’s more, women are more than half of the 7 million considered “out of the workforce” but who want to return to work. For Black women and Latinas, the losses have been even greater. Scientists at the Center for Economic and Social Research at USC also found that 33 percent of working mothers in two-parent households reported they were the only one providing care for their children, compared to 10 percent of working fathers.”  The article goes not to outline key steps the Governor has taken to address these needs.

  • More Food for Low-Income Households:  The US Department of Agriculture released a fact sheet on the impact of current and proposed changes to federal food and nutrition programs.  https://www.fns.usda.gov/news-item/usda-003721  The USDA estimates that 30 million adults and 12 million children in the US live in a household where they do not regularly get enough to eat. Two of the many enhancements are described below.

  • Increased SNAP benefits by 15%. The federal Appropriations Act of 2021 provided a 15% increase in SNAP benefits from January through June 2021, and the American Rescue Plan will extend these benefits through September.  The average increase is $28 per month.  In California, this represents $118 million additional dollars where there are 4.2 million receiving SNAP benefits, 66% being children. 

DATA, SURVEYS, AND ANALYSES

  • February US Employment Data (most current):  US Bureau of Labor Statistics (BLS) released national-level employment data for February 2021.  https://www.bls.gov/news.release/empsit.nr0.htm  According to the report, total US nonfarm payroll employment increased by 379,000 jobs in February, reflecting a 6.3% unemployment rate.  In releasing the data, the BLS stated: “most of the job gains occurred in leisure and hospitality, with smaller gains in temporary help services, health care and social assistance, retail trade, and manufacturing. Employment declined in state and local government education, construction, and mining.” Unemployment among selected worker groups:  13.9% for Teenagers, 5.9% Adult Women, 6% Adult Men, 9.9% for Blacks, 8.5% for Hispanics, 5.1% for Asians, 5.6% for Whites.

  • December California Employment Data (most recent):  The Employment Development Department released state-level data for December 2020.  https://www.edd.ca.gov/newsroom/unemployment-december2-2020.htm  California’s unemployment rate was 9.0% in December. Nonfarm payrolls contracted by -52,200 jobs.  According to the announcement, California has regained more than 44% of the 2,615,800 nonfarm jobs that were lost due to the COVID-19 pandemic in March and April.  Unemployment among Blacks and Latinx were up from the 11% of the prior month, 12.2% and 11.7% respectively.  https://www.labormarketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf

  • Women’s History Month:  The US Census Bureau released, Facts for Features for Women's History Month: March 2021https://www.census.gov/newsroom/facts-for-features/2021/womens-history-month.html  According to the announcement, the foundation of National Women’s History Month goes back to March 8, 1857, when women factory workers in New York City staged a protest over poor working conditions.  Other information shared in the fact sheet includes:

    • 166.6 million - The number of females in the US as of July 2019. There were 161.7 million males during the same period 

    • 33.9% - The percentage of women 25 and older who had earned bachelor’s degrees or higher compared with 32.3% of men (2019) 

    • 79.2 million - The number of females ages 16 and older who participated in the civilian labor force in 2019 

    • 81.6% - The percentage of female full-time, year-round workers over 16 years’ median earnings compared to men in 2019. In 2010, women earned 78.6% of what men made

  • January Personal Income and Outlays: The Bureau of Economic Analysis released its January 2021 Personal Income and Outlays, a monthly national-level dataset. https://www.bea.gov/news/2021/personal-income-and-outlays-january-2021  In January 2021, personal income increased 10% (+$1,954.7 billion), disposable personal income increased 11.4% +($1,963.2 billion), and personal consumption expenditures increased 2.4% (+$340.9 billion).  According to the announcement, the increase in personal income in January was more than accounted for by an increase in government social benefits to persons, pursuant to various federal COVID-19 pandemic response programs, including pandemic unemployment compensation and economic impact payments authorized Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act enacted on December 27, 2020.

  • January Industrial Production and Capacity Utilization: The Federal Reserve Bank released their monthly national-level summary, Industrial Production and Capacity Utilization: Summary, which shows how major market groups and major industry groups are faring in 2021. https://www.federalreserve.gov/releases/g17/Current/default.htm

    • Industrial Production Month-Over (December 2020 to January 2021):  Industrial production increased 0.9%; Manufacturing output rose 1.0%; Mining production advanced 2.3 %; and Output of utilities declined 1.2%.

    • Industrial Production Year-Over (January 2020 to January 2021):  Total industrial production in January was 1.8% lower, as compared to its year-earlier level.  Most market groups (final products, consumer goods, business equipment, nonindustrial supplies, construction, materials) posted gains in January, with noteworthy declines coming for consumer paper products, paper materials, transit equipment, information processing equipment, and consumer energy products.  Total industrial production has not returned to its pre-pandemic levels of early last year with the indexes for about half of the market groups still below their year-earlier readings.

    • Capacity Utilization Month-Over (December 2020 to January 2021):  Capacity utilization for the total industrial sector increased 0.7% in January to 75.6%, a rate 1.3% lower than pre-pandemic numbers.  Capacity utilization for manufacturing increased 0.7% in January, which is still 0.6% lower than its pre-pandemic levels.  The operating pace for mining increased 2.0% to 82.2%, and this is 8.3% below the pre-pandemic amount.  Utilities decreased by 1.1% to 73.5, which is 2.4% higher than pre-pandemic totals.  Also, capacity utilization remains below long-run averages.

  • March the Federal Reserve- the Beige Book: The US Federal Reserve issues a regular economic report 2 out of every 3 months called “The Beige Book: Summary of Commentary on Current Economic Conditions”.  Published 8 times a year, the Beige Book aggregates data and analysis on the economic conditions for each of the 12 Federal Reserve districts.  San Francisco is the headquarters for the ninth Federal Reserve District, which is comprised of the nine most western states, including California. https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20210303.pdf  Overall economic activity increased moderately in the San Francisco District between January and the end of data collection in the middle of February.  Employment levels fell minimally, while wages heightened marginally. Inflation rose due to surges in energy prices.  Retail sales improved, while consumer and business service sectors constricted slightly due to COVID-19 effects.  Manufacturing continued to increase.  The agricultural sector increased modestly.  Activity within the residential real estate market continued to increase, but the commercial real estate declined. While lending increased, this was largely due to the second round PPP loans.  Many economic industries continue to report a need for additional workers.  The demand for low-skill workers fell, while the need for high skills workers in in construction, manufacturing, auto-mechanics, and health care has been increase.

  • 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 March 8, 2021.  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

Meals served as of 3/07

27,545,290

Individuals Served This Week

39,395

Food Providers Contracted

636

Data received from Great Plates Data Portal updated on Sundays.

 

 

 

 

 

GRANTS

  • CDFI Rapid Response Program:  The US Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) opened the FY 2021 funding round for the CDFI Rapid Response Program.  https://www.cdfifund.gov/programs-training/programs/rrp Up to $1.25 billion, authorized by Supplemental Appropriations Act of 202, will be awarded to CDFIs to address economic hardships created by the COVID-19 pandemic. The deadline for applications closes on March 25, 2021.  Eligible activities include, but are not limited to, financial products, financial services, loan loss reserves, development services, capital reserves, and certain operational activities as defined by the NOFA.

  • Select Global Women in Tech Mentorship Network:  The US Department of Commerce’s SelectUSA is accepting mentor applications for participation in Select Global Women in Tech (SGWIT) mentorship network.  https://tools.eventpower.com/speaker_management/index/21SUSA-MENTORS  This initiative is intended to provide support and educational content for international female tech entrepreneurs as they navigate the complicated process of making investments in the US.  According to the announcement, SelectUSA is seeking individuals engaged in the US entrepreneurial ecosystem interested in being a mentor for an international female founder as part of a six-month program. Potential mentors include: entrepreneurs in residence at universities, lawyers or other service providers, venture capitalists or angel investors, corporate executives, or founders of successful startups.  ** International companies seeking to participate as mentees should first apply to the 2021 SelectUSA Investment Summit.

  • National Juvenile Court Data Archive:  The National Institute of Justice in collaboration with the Office of Juvenile Justice and Delinquency Prevention (OJJDP), seeks proposals to support the National Juvenile Court Data Archive (the Archive).  https://nij.ojp.gov/funding/opportunities/o-nij-2021-40001#faq-is-the-project-management-plan-required The Archive collects, maintains, and makes accessible the nation's primary source of detailed information on juvenile court case processing of delinquency and status offense cases.  In the case of partnerships that will involve the use of federal award funds by multiple partnering agencies to carry out the proposed project, only one entity/partnering agency may be the applicant; any others must be proposed as subrecipients.  The total reward is $2,000,000, and the application is due March 17, 2021.

  • Crime Laboratories:  The National Institute of Justice seeks proposals for research and evaluation projects aimed at understanding and strengthening the accuracy and reliability of a crime laboratory’s systems and processes.  https://nij.ojp.gov/funding/opportunities/o-nij-2021-45003  The awards could be between $400,000 to $600,000 if two awards are given or $1,000,000 if one, and the deadline is April 5, 2021.

  • Upgrading Underground Storage Tanks (RUST) Grants:  The State Water Resources Control Board announced the availability of Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) grants to assist small business underground storage tank (UST) owners and operators in financing up to 100% of the costs for removal projects.  https://www.waterboards.ca.gov/water_issues/programs/ustcf/rust.html  In order to be eligible, the business must have less than 20 employees and sell less than 900,000 gallons of gasoline in a year.  Individual awards of up to $70,000 are available.  An extra $140,000 is available for remote public fueling stations, as specified.  The deadline for applying is December 31, 2021.

  • Commercial Driver's License Program Implementation Grant:  The US Department of Transportation announced the availability of funding from the Commercial Driver’s License Program Implementation Grant, a financial assistance program to assist states and other eligible entities in meeting the requirements of 49 CFR Parts 383 and 384.  https://www.fmcsa.dot.gov/grants/cdl-program-implementation-grant/commercial-driver-license-cdl-program-implementation-grant  Grants awarded are between $10,000 to $40,000,000.  Allowable costs include, but are not limited to, expenses for computer hardware and software, publications, testing, personnel, training, and quality control.  Grants awarded under this program may not be used to rent, lease, or buy land or buildings. The deadline to apply is March 15, 2021.

  • Motor Carrier Safety Assistance Program Grant:  The US Department of Transportation is accepting applications for funding under the Motor Carrier Safety Assistance Program (MCSAP) Grant program.  https://www.fmcsa.dot.gov/grants/mcsap-basic-incentive-grant/motor-carrier-safety-assistance-program-mcsap-grant  The purpose of the grant is to help reduce the severity and number of crashes involving commercial motor vehicles on US roads by expanding the number of commercial driver’s license holders possessing enhanced operator safety training.  The program can also assist current or former members of the US Armed Forces, including National Guard and Reservists, as well as certain family members, to obtain a commercial driver’s license.  The max award is $200,000, and the deadline is March 15, 2021.

UNEMPLOYMENT INSUANANCE AND PANDEMIC UNEMPLOYMENT ASSISTANCE

  • State Unemployment Benefit Data:  The Employment Development Department (EDD) released new unemployment insurance data for California during the week ending February 27, 2021.  https://www.edd.ca.gov/newsroom.htm  Among other information, EDD reports the following:

    • 29,919 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims were filed during the report period.

    • Over 10.8 million initial unemployment benefit claims have been filed with EDD between March 14 2020 and the close of the report period.

    • $126 billion has been paid to out-of-work Californians since the start of the pandemic. 

  • 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 March 5, 2021, EDD released its bi-weekly report to the Legislature addressing the backlog:  https://www.edd.ca.gov/About_EDD/pdf/CUIC-337-legislative-report-030521.pdf  Progress in eliminating the backlog are also tracked through these two data dashboards:

    • Unemployment Initial Claims Backlog Dashboard:  As of March 3, 2021, 929, 856 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 March 3, 2021, 161, 959 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.

UPDATES AND STATUS REPORTS ON SMALL BUSINESS ACCESS TO CAPITAL 

[This is a “quick-source” section that includes new and previously provided information.]
  • April 7 Deadline for EIDLs Related to Civil Unrest:  The US Small Business Administration’s Disaster Field Operations Center-West released a reminder that California small businesses have until April 7, 2021, to apply for an SBA federal disaster loan for economic injury caused by the civil unrest in Sacramento and San Diego counties that occurred May 26 – Dec. 28, 2020.  Applicants may apply online and receive additional disaster assistance information at https://disasterloanassistance.sba.gov/. SBA’s Customer Service Center: (800) 659-2955.

  • California Competes Tax Credit:  The Governor’s Office of Business and Economic Development announced that the application period for $71.1 million in California Competes Tax Credits (CCTCs) is open from March 8 to March 29, 2021.  This tax credit is designed to support businesses making new capital investments and adding quality, full-time jobs in California that might not otherwise be created by the business or any other business.  The online application can be accessed at www.calcompetes.ca.gov.  

  • California Small Business Grants:  The Office of the Small Business Advocate launched a Small Business COVID-19 Relief Grant program, which provided nearly $500 million in grants to small businesses and small nonprofits that have been negatively impacted by the COVID-19 pandemic.  The Legislature approved and the Governor signed SB 87 (Caballero and Min) on February 23, 2021, which provide as additional $2.1 billion in grant funds through a minimum of three additional funding rounds.

    • Application and award notice period for Rounds 1 and 2 is completed.  Over 354,000 applications were received in Rounds 1 and 2, requesting a total of $4.5 billion

    • Preliminary data shows that 43,419 applicants received at least initial approval for a total of $495 million.  95% of the awardees were from small business applicants, as compared to applications from nonprofits.  More information on small business applications is available at:  https://static.business.ca.gov/wp-content/uploads/2021/02/SBCRG-Preliminary-Data-FINAL-022321.pdf

    • Application guidance is available herehttps://careliefgrant.com/wp-content/uploads/2021/01/CRG-All-Businesses-Program-and-Application-Guide-Public-Updated-01.28.21.pdf

    • Free one-on-one technical assistance is available through a wide range of nonprofit resource providers, including SBDCs, Women’s Business Centers, and ethnic chambers of commercewww.CAReliefGrant.com.     

    • New Funding Rounds Announced:

      • Round 3 (waitlisted applicants from Rounds 1 and 2): Friday, March 5th through Thursday, March 11th, 2021

        • Eligible applicants: This is a closed round and only available to eligible applicants who were waitlisted in Rounds 1 and 2 – only existing applicants will be selected. If you were waitlisted, you do not need to reapply. New applications will not be accepted in this round.

        • Eligible grant award: $5,000 to $25,000

        • Details: This is a closed funding round; no new applications will be accepted

      • Round 4 (non-profit cultural institutions only): Tuesday, March 16th through Tuesday, March 23rd, 2021

        • Eligible applicants: Only non-profit cultural institutions with any revenue size that meet eligibility criteria found at CAReliefGrant.com

        • Eligible grant award: $5,000 - $25,000

        • Details: Eligible non-profit cultural institutions must complete a new application even if they already applied in Rounds 1 and 2; grants will only be available to non-profits cultural institutions  that did not receive funding in Rounds 1, 2 or 3; grants will be prioritized based on the documented percentage revenue declines based on a reporting period comparing Q2 and Q3 of 2020 versus Q2 and Q3 of 2019

      • Round 5: Thursday, March 25th through Wednesday, March 31st

        • Eligible applicants: current waitlisted small businesses and non-profits not selected in Rounds 1, 2, or 3 and new applicants that meet eligibility criteria found at CAReliefGrant.com

        • Eligible grant award: $5,000 - $25,000

        • Details: Applicants not selected to receive a grant in Rounds 1, 2, & 3 do not need to reapply as they will be automatically moved into Round 5. New applicants will need to apply at CAReliefGrant.com

      • Round 6: Date to be announced soon

        • Eligible applicants: current waitlisted small businesses and/or non-profits not selected in Rounds 1, 2, 3, 4 or 5 and new applicants that meet eligibility criteria found at CAReliefGrant.com

        • Eligible grant award: $5,000 - $25,000

        • Details: Applicants not selected to receive a grant in Rounds 1, 2, 3 & 5 do not need to re-apply and will be automatically moved into Round 6. New applicants will need to apply at CAReliefGrant.com

  • Tax Credits for Required Paid Leave:  The Internal Revenue Service (IRS) maintains a webpage on current information regarding tax credits employers may apply when meeting COVID-19 employee paid leave requirements.  https://www.irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs This includes, but is not limited to, the newly extended Employee Retention Credit.  https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-how-to-claim-the-employee-retention-credit-faqs  The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to the credits previously authorized under the CARES Act, including modifying and extending the Employee Retention Credit.  Several of the changes apply only to 2021, while others apply to both 2020 and 2021.  The maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.  Small employers may request advance payment.

    • Are You Eligible for A Tax Credit?  The Internal Revenue Service released a new form to help eligible self-employed individuals determine their qualified sick and family leave credit under the Families First Coronavirus Response Act -- IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals:  https://www.irs.gov/pub/irs-pdf/f7202.pdf

  • Guidance on the Employee Retention Credit:  The Internal Revenue Service (IRS) issued guidance for employers claiming the employee retention credit under the CARES Act, as modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).  https://www.irs.gov/newsroom/irs-provides-guidance-for-employers-claiming-the-employee-retention-credit-for-2020-including-eligibility-rules-for-ppp-borrowers The guidance in Notice 2021-20 includes clarifications and describes retroactive changes under the new law applicable to 2020, primarily relating to expanded eligibility for the credit.  “For 2020, the employee retention credit can be claimed by employers who paid qualified wages after March 12, 2020, and before January 1, 2021, and who experienced a full or partial suspension of their operations or a significant decline in gross receipts. The credit is equal to 50% of qualified wages paid, including qualified health plan expenses, for up to $10,000 per employee in 2020. The maximum credit available for each employee is $5,000 in 2020.”  The guidance also explains when and how employers that received a Paycheck Protection Program loan can also claim the employee retention credit for 2020.  This is one of the most significant changes to the Employee Retention Credit made by the Relief Act. 

  • 100% Corporate Donation Exemption:  The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2021, temporarily increased the corporate contribution limit to 100% of a corporation’s taxable income for contributions paid in cash for relief efforts in qualified disaster areas.   https://www.irs.gov/forms-pubs/about-publication-526 While donations related to COVID-19 are not eligible, other specified federally declared disaster are eligible, including certain fires.

  • Shuttered Venue Operators:  The US Small Business Administration is launching the Shuttered Venue Operators (SVO) Grant program, as authorized by The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.  Under the new program, $15 billion is dedicated to making grants to shuttered venues who may receive up to 45% of their gross earned revenue, up to a $10 million.  $2 billion of the grants are reserved for businesses with 50 or less employees. 

 
PPP Applicant
Shuttered Venue Operators Grant Applicant
COVID-19 EIDL Applicant
PPP Recipient
First Draw PPP borrowers may be eligible to apply for Second Draw PPP loans
May apply for SVOG if received a PPP loan prior to 12/27/20
May apply for EIDL; PPP and EIDL can’t be used for the same purpose/costs
Shuttered Venue Operators Grant Recipient
Not eligible to apply for PPP loan
May be eligible to receive a supplemental SVOG award
May apply for EIDL; SVOG and EIDL can’t be used for the same purpose/costs
COVID -19 EIDL Recipient
May apply for PPP; EIDL and PPP can’t be used for the same purpose/costs
May apply for SVOG; EIDL and SVOG can’t be used for the same purpose/costs
The same business cannot apply for more than one EIDL
State Small Business Disaster Loan Guarantee Program (February 26, 2021)
 
Conditionally Approved
Loan Amount
Guarantee Amount
Amount Encumbered
Employees
Total
1359
$ 55,971,346
$ 53,001,062
$ 26,500,531
6825
The IBank provides the Joint Legislative Budget Committee an update monthly.

CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS

[This is a “quick-source” section that includes new and previously provided information.]

FREE WEBINARS

JEDE maintains a list of upcoming and on-demand webinars on our website.  Upcoming webinars are listed here (https://ajed.assembly.ca.gov/content/free-webinars) and on-demand webinars can be found at https://ajed.assembly.ca.gov/content/demand-webinars-available-24-7.  These webinars cover a range of topics, including federal disaster programs, marketing during the COVID-19 pandemic, and accessing international markets.

 

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