JEDE Midweek COVID-19 Update - September 23 Edition

MAJOR ANNOUNCEMENTS

• Zero-Emission Vehicles:  Governor Newsom announced that his Administration will aggressively move the state further away from its reliance on “climate change-causing fossil fuels” while retaining and creating jobs and spurring economic growth.  The Governor issued an executive order (EO N-79-20) requiring sales of all new passenger vehicles to be zero-emission by 2035, as well as other measures to reduce GHG emissions from the transportation sector (responsible for over 50% of all carbon emitted in CA).  https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/

• Amendments to Proxy Access Rules:  The Securities and Exchange Commission voted to adopt amendments to its shareholder proposal rule, which governs the process for a shareholder to have its proposal included in a company’s proxy statement for consideration by all of the company’s shareholders.  According to the announcement, the amendments add the following requirements:  (1) requiring the entity submitting the proposal to have held at least $2,000 in shares for at least three years or higher amounts for shorter periods of time; (2) requiring a shareholder to be able to appear at the company headquarters within 30 days of submitting the proposal; (3) limiting each entity to submitting only one proposal at a company in a single year; (4) requiring the initial inclusion in the proxy statement to include the amount and length of ownership of the proposing shareholder; (5) increasing the levels of shareholder support a proposal must receive to be eligible for resubmission at the same company’s future shareholder meetings; and (6) requiring the proxy statement for resubmissions of proposals not approved to include the amount of support from other shareholders in the initial proposal.  The announcement further explains that these modifications are intended to relieve companies and shareholders of the obligation to spend time and resources on proposals where there may not be “appropriate alignment of interests between shareholder-proponents and their fellow shareholders.”  https://www.sec.gov/news/press-release/2020-220

• New UI and PUA Claim Processing is on Hold:  The Employment Development Department (EDD) announced a two-week reset period (September 20 to October 4, 2020) on the processing of new unemployment insurance (UI) benefits, including the Pandemic Unemployment Assistance payments for independent contractors.  The processing hold comes as a result of a report released by a Strike Team deployed in July 2020 to review the EDD’s processes and identify improvements to address the historic claim volumes experienced during the pandemic.  This two-week reset will also allow EDD to reduce UI claim backlog.  The reset does not impact existing claimants from managing their UI Online account.  https://www.edd.ca.gov/Jobs_and_Training/pubs/wsin20-13.pdf

• Castro Named Head of CSU System:  The California State University (CSU) Board of Trustees has selected Joseph I. Castro, Ph.D. as the system’s new Chancellor.  Dr. Castro has served as the president of California State University, Fresno, since 2013. He is the first native Californian and person of color to be appointed to lead the CSU.  https://www2.calstate.edu/csu-system/news/Pages/Joseph-I-Castro-Appointed-Eighth-CSU-Chancellor.aspx

• Nail Services May be Performed Indoors:  The California Department of Public Health has issued updated guidance for personal care services (Nail services, Esthetic and Skin Care Services, etc.) https://covid19.ca.gov/industry-guidance/

• 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 September 23, California has completed Census forms from 97.5% of all households, with 28.8% of those households reporting through follow-up house-to-house canvassing by official census takers.  California ranked 18^th 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 September 30, 2020. 

• Small Business Credit Survey:  The Federal Reserve System is conducting its annual Small Business Credit Survey to identify the current challenges small business owners face accessing credit. The survey is for businesses currently in operation, those recently closed, and those about to launch.  All responses are confidential.   www.sffed.us/sbcs2020   In addition to sharing this link within your network, the Federal Reserve System is looking for organizations to become regular survey partners, who will receive opportunities to gain access to data-driven reports about their network.

• CA Governor to Speak on Climate Panel:  Governor Newsom announced his participation on a US Climate Alliance Governors Panel on Thursday, September 24, 2020.  The virtual event will be streamed live (https://www.youtube.com/watch?v=dEJm4II8Rac&feature=youtu.be). More information on the event is available at: https://www.gov.ca.gov/2020/09/22/thursday-during-climate-week-2020-governor-newsom-to-host-california-climate-action-day-highlighting-californias-global-leadership/.

• Update on Federal Fire Assistance:  The US Department of Agriculture (USDA) announced the availability of assistance for residents and agricultural producers affected by recent wildfires.  As of September 16, 2020, the USDA reports that wildfires have burned nearly 6.9 million acres across 11 states, including California. More than 31,000 personnel from the local, state and federal levels are working to contain 61 large fires.  The USDA’s Food and Nutrition Service (FNS) approved California’s waiver request to allow for the purchase of hot foods with Supplemental Nutrition Assistance Program (SNAP) benefits in select counties impacted by the fires through September 23, 2020.  On September 3, 2020, FNS also approved California’s request to issue automatic mass replacements of SNAP benefits to impacted households. This waiver allows households in certain counties and zip codes to receive replacement of 50% of their August SNAP benefits as a result of wildfires and power outages that began on August 17, 2020. The California Department of Social Services is the contact.  https://www.fns.usda.gov/news-item/usda-037420   The USDA Rural Development (https://www.rd.usda.gov/) and the USDA Farm Services (https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/emergency-farm-loans/index) have also activated emergency response programs to address the needs of farmers, ranchers, and rural residents impacted by the fires.

• Highlights from Climate Week:  Climate Week 2020 runs from September 21 to 25 and nearly all events can viewed on-line.  Below are highlights from the first two days.

  • Walmart Commits to being 100% Carbon Free:  Walmart, the largest retailer in the world, announced during the Opening Ceremony that Walmart will be 100% carbon neutral across its global operations by 2040 – without relying on offsets.  In addition, the company said that it had set a goal to protect, manage or restore at least 50 million acres of land and one million square miles of ocean by 2030.

  • Prince of Wales Calls for Marshall-like Plan:  His Royal Highness The Prince of Wales delivered a keynote address at the Opening Ceremony, saying that climate change “is now rapidly becoming a comprehensive catastrophe that will dwarf the impact of the coronavirus pandemic. At this late stage I can see no other way forward but to call for a Marshall-like plan for nature, people and planet.” He went on to add: “we must now put ourselves on a warlike footing, approaching our action from the perspective of a military-style campaign.”  [HRH Prince Charles has long been deeply engaged on sustainable development issues, including Sustainable Markets Initiative and Council, in collaboration with the World Economic Forum, in September 2019.]

  • COP26 Calls for 100% Renewable Business Goal:  Alok Sharma, COP26 President and UK Secretary of State for Business, Energy and Industrial Strategy, called for businesses to commit to using 100% renewable electricity and to switching corporate fleets to electric through the Climate Group’s RE100 and EV100 initiatives.

  • 100% Zero Emission Cars and Vans:  Tesco joined a group of now 27 big corporations calling on the UK Government to set a target of 100% zero emission car and van sales by 2030.  https://www.theclimategroup.org/news/tesco-joins-call-uk-government-fast-track-move-zero-emission-cars-and-vans-2030  In addition, Tesco announced that it will be joining the EV100 initiative, which now includes 86 businesses, committed to switching over 4.8 million vehicles across the world to zero emissions and annually reporting on their progress.

  • New Energy Reduction Commitments from Business:  Ten major companies made commitments on smarter energy use, including China’s Changzhou New Wide, a textile manufacturer and supplier to major international brands such as Adidas, Anta, Decathlon, Lululemon, PVH, and Walmart.  These companies are joining 100+ companies who have already made energy reduction/efficiency commitments through the Climate Group’s global EP100 initiative.

  • SEC Commissioner Speaks on the Value of Diversity to Large Inventors:  Securities and Exchange Commissioner Allison Lee spoke to the Institute of Institutional Investors about the value of diversity on public boards and their workforces.  Quoting an extensive list of recent reports and research, the Commissioner identified specific ways in which diversity directly benefited companies and areas in which there were strong correlations between the diversity of the board or workforce and positive economic outcomes.   https://www.sec.gov/news/speech/lee-cii-2020-conference-20200922

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

  • List of Activities Authorized Under Each Tier: https://www.cdph.ca.gov/Programs/CID/DCDC/CDPH%20Document%20Library/COVID-19/Dimmer-Framework-August_2020.pdf 

  • Updated Stay-at Home Order:  https://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 Guidance:  https://covid19.ca.gov/industry-guidance/ 

  • 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 includes 450 California manufacturers.  

• 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 LEGISLATION RELATED TO COVID-19, MARCHES FOR SOCIAL JUSTICE, AND ECONOMIC RECOVERY

• Better EITC Outreach:  The Governor signed SB 1409 (Caballero), which requires the Franchise Tax Board to analyze and develop a plan to increase the number of claims to the California Earned Income Tax Credit (EITC).

• Fed Chair Provides Testimony to the US Congress:  Chair of the Federal Reserve Bank System Powell submitted identical remarks to the US House Select Subcommittee on the Coronavirus Crisis on September 23, 2020, and to the US Senate Committee on Banking, Housing, and Urban Affairs on September 24, 2020.  https://www.federalreserve.gov/newsevents/testimony/powell20200922a.htm

• 90% of Americans want Another Stimulus Package:  The Financial Times reports that “Americans are becoming increasingly pessimistic about the US economic rebound, with almost 90 per cent saying Washington needs to pass a new stimulus package to mitigate the fallout from the coronavirus pandemic.  The growing concern about the economy, detailed in a new poll of likely voters for the Financial Times, comes even as Americans increasingly believe the country has turned the corner after the spike of infections this summer, which forced several states to slam the brakes on reopening plans.”  https://www.ft.com/content/83d3b0dd-57a4-4458-80ec-96418abdc93e?emailId=5f69cad4cda7a00004d20d9f&segmentId=ce31c7f5-c2de-09db-abdc-f2fd624da608

• NCSL Database:  The National Council of State Legislatures is maintaining a database of state legislation, including COVID-19-related legislation. https://app.powerbi.com/view?r=eyJrIjoiZDA5ODUyNmItNGFlMC00YzNhLWI2NjctMmJiMDMzMzQ3ZjVlIiwidCI6IjM4MmZiOGIwLTRkYzMtNDEwNy04MGJkLTM1OTViMjQzMmZhZSIsImMiOjZ9  

DATA, SURVEYS, AND ANALYSES

• Food Scarcity:  The California and Budget Center released a report, Not Enough to Eat: California Black and Latinx Children Need Policymakers to Act.  According to the report, before the COVID-19 pandemic, about 1 in 10 Californians sometimes or often lacked access to enough food to support a healthy lifestyle.  In California, this number increased to 15.9% of households with children during a four-week period in late June and July. More specifically, for Latinx and Black households, more than 1-in-5 households with children reported sometimes or often not having enough to eat (21.9% and 20.2%, respectively) during the same period.  Among other recommendations, the report proposes increasing the maximum state CalFresh benefit (federal Supplemental Nutrition Assistance Program in California) by at least 15%, which would boost benefits by about $25 per person per month; extending the federal Pandemic Electronic Benefits Transfer (P-EBT) through the 2020-21 school year; and investing in programs like virtual home visiting, which can connect families to food banks, food assistance, and other food-related resources.  https://calbudgetcenter.org/resources/snap-calfresh-california-black-and-latinx-children-need-policymakers-to-act/

• State Unemployment Benefit Numbers Released:  EDD released unemployment insurance data for California for the week ending September 12.  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:

  • 191,852 Unemployment Benefit claims were filed for the week ending September 12.

  • Between March 14 and September 12, EDD received 9.8 million Unemployment Benefit claims.

  • $86 billion has been paid to out-of-work Californians since the start of the pandemic.

• State Audit Finds Irregularities in UC Admissions Process:  The California State Auditor issued its final report following the review of the general admissions practices of three campuses: the University of California, Berkeley (UC Berkeley), the University of California, Los Angeles (UCLA), and the University of California, San Diego (UC San Diego).  http://auditor.ca.gov/pdfs/reports/2019-113.pdf?utm_source=CalMatters+Newsletters&utm_campaign=e468b56429-WHATMATTERS_NEWSLETTER&utm_medium=email&utm_term=0_faa7be558d-e468b56429-150194957&mc_cid=e468b56429&mc_eid=1b394fb32b This report draws the following conclusions:

  • Campus staff took advantage of weaknesses in admissions processes to inappropriately admit 64 students as favors to donors, family, and friends.

  • Campuses lack key criteria and standards to support their admissions decisions.

  • Campuses have not adequately ensured that reviewers and faculty consistently and fairly evaluate applications.

  • The UC Office of the President has not safeguarded the university’s admissions process.

• Greatest Emitters Called to Make Commensurate Reductions:  Oxfam and the Stockholm Environment Institute released a study, Confronting Carbon Inequality.  According to the study, the richest 10% of the world’s population was responsible for more than half of all greenhouse gas emissions between 1990 and 2015.  To avoid reaching 2 degrees C (3.6 degrees F) of global warming, this cohort would have to reduce its emissions by a factor of 10 in less than a decade.  https://www.oxfam.org/en/research/confronting-carbon-inequality

• National Unemployment Data Released:  The US Bureau of Labor Statistics released national unemployment figures for August 2020, showing total US nonfarm payroll employment rose by 1.4 million and the unemployment rate fell to 8.4%.  These numbers reflect 13.6 million unemployed people in the US with a labor participation rate of 61.7%.  The largest increase in employment was in the government sector, which accounted for one-fourth of the over-the-month gain in total nonfarm employment.  Among other data, August shows a significant drop in the number of individuals temporarily laid off (decrease of 3.1 million for a total of 6.2 million).  However, the number of individuals who permanently lost jobs increased by 534,000 for a total of 3.4 million.  For comparison, the number of individuals who have permanently lost jobs has risen by 2.1 million since February 2020.  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%.   National data for September 2020 will be released Friday, October 2, 2020, and state-level data for September 2020 will be available on or after October 15.

  • National Data for August 2020:  https://www.dol.gov/newsroom/economicdata/empsit_09042020.pdf   

  • Job Openings and Labor Turnover for July 2020:  https://www.bls.gov/news.release/pdf/jolts.pdf (most recent)

  • State-Level Data for August 2020:  https://www.bls.gov/news.release/laus.nr0.htm and https://edd.ca.gov/Newsroom/unemployment-september-2020.htm  

  • NEW - California Expanded Data for August 2020:   https://www.labormarketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf    

GRANTS

• CA Community Reinvestment Grants:  The Governor’s Office of Business and Economic Development announced that the 20-21 grant solicitation for the California Community Reinvestment Grants (CalCRG) program is now available.  For CalCRG program funding amounts, eligibility, and the application process, please review the Fiscal Year 2020-21 Grant Solicitation at: www.business.ca.gov/CalCRG.  The CalCRG Online Application Portal will be available at www.business.ca.gov/CalCRG beginning Monday, September 28, 2020.  The first phase of the application process must be completed and submitted by Monday, November 2, 2020, at 11:59 pm. 

• NMTC Funding Announced -- $5 billion Extra to be Allocated:  The US Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) released the Notice of Allocation Availability (NOAA) for the calendar year (CY) 2020 round of the New Markets Tax Credit Program (NMTC Program).  This funding round will include $5 billion in additional allocations.  https://www.cdfifund.gov/news-events/Pages/news-detail.aspx?NewsID=393&Category=Updates

FALL IS CONFERENCE TIME

• Climate Week:  Climate Week (September 21-27, 2020) is a significant multifaceted group of events building up to COP26 – a global convening hosted by the United Nations.  This year’s Climate Week will focus on how to build back better after COVID-19, including a just transition to a net-zero future.  Multiple venues offer free online viewing of various events, including:

  • California Climate Action Day (Thursday):  https://www.gov.ca.gov/2020/09/22/thursday-during-climate-week-2020-governor-newsom-to-host-california-climate-action-day-highlighting-californias-global-leadership/

  • Climate Group (September 2 through 27):  https://www.climateweeknyc.org/climate-week-nyc-2020

  • Sustainable Development Impact Summit (September 21 to 24):  https://www.weforum.org/agenda/2020/09/everything-you-need-to-know-about-the-sustainable-development-impact-summit-2020

  • Event Brite (activities throughout September):  https://www.eventbrite.com/d/online/climate-week/

• American Indian Chamber Annual General Meeting:  The American Indian Chamber of Commerce California is holding its annual general meeting virtually on Friday, September 25, 2020. The Chamber will also be celebrating Native American Day and gathering feedback for Annual California Public Utility Commission’s En Banc on General Order 156 - Supplier Diversity, which is being held September 29, 2020.  https://us02web.zoom.us/meeting/register/tZUoc-6przsoEtFaThy91ox8I7uwou3SuPOp

• National Gathering of Veterans:  The Southern California Veteran’s Business Center is promoting the Annual National Gathering of Veterans, which is being held on Saturday, September 26, 2020.  The National Gathering of Veterans is an annual event that honors all veterans in a traditional native way.  This year’s event will be virtual, with portions of it being broadcast from Trickster Cultural Center itself.

• Californians Deserve Credit:  California Competes, the California EDGE Coalition, and the Education Trust–West are launching Californians Deserve Credit on September 29 with a 90-minute town hall.  This new initiative will help individuals obtain “credit for all of their learning—whether it takes place in a classroom, on a computer screen, or anywhere else.”  Registration is free and the convening is virtual.  To register:  https://edtrust.zoom.us/meeting/register/tJAtd-2trDMuEtXgQgD2-d1yrmgYQCQrJBLG?mc_cid=d37673d064&mc_eid=89807171fd   

• GO 156 Supplier Diversity Enbanc:  The California Public Utilities Commission is holding its annual hearing on the implementation of General Order 156, which relates to supplier diversity requirements for publically held utilities.  The virtual event will begin at 9:00 am on September 29, 2020.  https://cpuc.webex.com/mw3300/mywebex/default.do?nomenu=true&siteurl=cpuc&service=6&rnd=0.2074179408130966&main_url=https%3A%2F%2Fcpuc.webex.com%2Fec3300%2Feventcenter%2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26%26%26EMK%3D4832534b00000004e78fcce0cf92c28f8e61bc5893fbf84d7723f8837ea14704357cf3584bd2a677%26siteurl%3Dcpuc%26confViewID%3D170146617385565948%26encryptTicket%3DSDJTSwAAAARBh4fkmF1T8GFiELGFOg4AmbsubRzBNICtvwtSK9o-Pw2%26

• New Date for State Trade Committee:  The International Affairs and Trade Development Interagency Committee is re-scheduled to meet on Wednesday, September 30, 2020, at 1:00 – 3:00 pm Zoom: h9ps://zoom.us/j/98591151543.

• 2020 Space and Cybersecurity Symposium:  The California State University at San Luis Obispo is hosting the 2020 Space and Cybersecurity Symposium from October 5 to 8, 2020.  https://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.

• 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 4.  https://summit.caeconomy.org/registration

GOOD NEWS ABOUT SMALL BUSINESS AND ECONOMIC DEVELOPMENT FRIENDS

• Small Business Month:

  • New California Small Business Initiative:  The California Office of the Small Business Advocate is launching a Get Digital California (#GetDigitalCA) initiative, which includes a series of free Grow with Google webinars designed to build resilience with online tools to help small businesses adapt to the new marketplace.  The four-part small business workshop takes place September 22 - October 7, 2020 - perfect timing to help businesses prepare to compete in the online marketplace leading up to the holiday shopping season.  Registration and more information are available at: https://register.gotowebinar.com/rt/3490778303472781327. Dates and topics can be found below.

    • September 24, 2020:  Ponga su negocio local en Google Search y Maps – 10:00 am

    • September 30, 2020:  Make Your Website Work for You – 10:00 am

    • October 7, 2020:  Use YouTube to Grow Your Business – 10:00 am

  • National Small Business Week to Kick-off September 22-24:  The US Small Business Administration rescheduled Small Business Week from May 2020 to September 22 through 24, 2020.  This year’s virtual events will recognize the national award winners, including the naming of the National Small Business Person.   https://www.sba.gov/national-small-business-week?utm_medium=email&utm_source=govdelivery

• September is Disaster Preparedness Month:  Governor Newsom issued a proclamation declaring September 2020 as “Preparedness Month” in the State of California.  https://www.gov.ca.gov/wp-content/uploads/2020/09/2020-Preparedness-Month-text.pdf  California Governor’s Office of Emergency Services is hosting a webpage with a collection of interesting documents, links, and videos to help make it easier for businesses to get prepared. https://www.caloes.ca.gov/ICESite/Pages/National-Preparedness-Month.aspx

• Latino Heritage Month:  Governor Newsom issued a proclamation declaring September 15 to October 15, 2020, as Latino Heritage Month in the State of California.  https://www.gov.ca.gov/2020/09/15/governor-newsom-issues-proclamation-declaring-latino-heritage-month-9-15-20/

• October is Manufacturing Month:  Plans are getting underway for national Manufacturing Day 2020 on Friday, October 2, 2020.  Here in California, we recognize that manufacturing is too important for a single day, so we celebrate October as Manufacturing Month!  The California Manufacturers and Technology Association always hosts a range of programming, and California Manufacturing Technology Consulting has its own webpage up. https://www.cmtc.com/mfgmonthca2020-0?utm_campaign=COVID-19&utm_medium=email&_hsmi=93629311&_hsenc=p2ANqtz--MaRRjQYI8xf2J57yeDFwlRuBvSFtk3e89zg32RxcCHcYfp8hrZGg6Jfse053wOVP6_2JtPWDEXtrH8UXJk1K89xoAqw&utm_content=93629311&utm_source=hs_email

• October is Women Business-Owner Month:  If your organization is planning events that you think the small business community should know about – send Ben and I an email:  benjamin.warheit@asm.ca.gov and toni.symonds@asm.ca.gov.  We would love to help spread the word.

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

• 100% Additional First Year Depreciation Deduction:  The US Treasury Department and the Internal Revenue Service released the last set of final regulations implementing the 100% additional first year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service by the business.  The deduction was created in 2017 by the Tax Cuts and Jobs Act and generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. According to the announcement, the deduction applies to qualifying property (including used property) acquired and placed in service after Sept. 27, 2017.  For details on claiming the deduction, the IRS has developed Form 4562 (https://www.irs.gov/forms-pubs/about-form-4562), Depreciation and Amortization (Including Information on Listed Property).

• Guidance on Business Expense Deductions:  The Internal Revenue Service has issued an IRS Newswire on qualifying home office deductions if they qualify. The home office deduction is available to qualifying self-employed taxpayers, independent contractors, and those working in the gig economy. https://www.irs.gov/taxtopics/tc509  It is important to note that changes made in the federal Tax Cuts and Jobs Act suspended the business use of home deduction from 2018 through 2025 for employees. Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home. 

• Online Federal Tax Resources:  The Internal Revenue Service has released a list of small business resources (https://www.irs.gov/newsroom/irs-highlights-online-resources-during-small-business-week-many-resources-available-in-multiple-languages) in honor of Small Business Week.  Here are a few resources your clients may find useful:

  • Small Business and Self-Employed Federal Tax Resource Center:  https://www.irs.gov/businesses/small-businesses-self-employed

  • Coronavirus Tax Relief for Businesses and Tax-Exempt Entities (includes employer tax credits):  https://www.irs.gov/coronavirus/coronavirus-tax-relief-for-businesses-and-tax-exempt-entities

  • Self-Employed Individuals Tax Center:    https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

  • Gig Economy Tax Center:  https://www.irs.gov/businesses/gig-economy-tax-center

  • Online Learning and Educational Products (includes a calendar of key business dates): https://www.irs.gov/businesses/small-businesses-self-employed/online-learning-and-educational-products

• COVID-19 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 September 7, 2020, the total outstanding amount of loans was $1 trillion with total value of the collateral pledged being $38.5 billion.   https://www.federalreserve.gov/publications/files/pdcf-mmlf-cpff-pmccf-smccf-talf-mlf-ppplf-msnlf-mself-mslpf-nonlf-noelf-9-8-20.pdf#page=7    

  • The Federal Reserve Board updated its Frequently Asked Questions (FAQs) for the Main Street Program to reflect the Board and Department of Treasury's expectations regarding lender underwriting. According to the announcement, the revised FAQs emphasize that lender underwriting should look back to the borrower's pre-pandemic condition and forward to their post-pandemic prospects.  https://www.federalreserve.gov/newsevents/pressreleases/monetary20200918a.htm  

• The Main Street Lending Program is now accepting submissions of eligible loans to nonprofit organizations, submitted by registered lenders. The Federal Reserve has released a new FAQ for nonprofits:  https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm

• COVID-19 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.  This program is closed to new applicants.

  • 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  (most recent)

  • Briefing on key aspects of the PPP program:  https://www.sba.gov/sites/default/files/2020-08/PPP%20Loan%20Data%20-%20Key%20Aspects%2008212020.pdf

• COVID-19 EIDL Aggregate-Level Data Update:  The US Small Business Administration released program utilization information for the Economic Injury Disaster Loan (EIDL).  As of September 14, 3.5 million EIDL loans have been approved in the US for a total of $190 billion.  In California, 546,783 EIDL loans have been approved for a total of $33.9 billion.  Link to a PowerPoint displaying data for loan activity through 09/14/2020:  https://www.sba.gov/document/report-covid-19-eidl-loans-report-9-14-20     

• SBA Weekly Lending Reports:  The US Small Business Administration (SBA) released its weekly lending report for the week ending September 11, 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 (closed to new applicants).

• Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA recently granted a 30-day extension to allow the program to continue to October 9.  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   

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.