JEDE update for July 10, 2020

MAJOR ANNOUNCEMENTS ON COVID-19 AND INCLUSIVE RECOVERY

  • Legislature Sets New Return Date:  Assembly Speaker Anthony Rendon and Senate President pro Tempore Toni G. Atkins have amended the date of the Legislature’s return from July 13 to July 27, 2020.

  • Shop Local Month Proclaimed:  Governor Newsom proclaims July as California for All Small Business Month and the Governor’s Task Force on Business and Jobs Recovery launches a new shop local campaign, Calling All Californians: #ShopSafeShopLocal.  The purpose of the campaign is to encourage Californians to support small businesses in their communities as they make modifications to protect public health and help our state’s diverse neighborhoods thrive.  The Office of the Small business Advocate is hosting related materials at https://business.ca.gov/shopsafeshoplocal/calosba-resources/.

  • New Restaurant Guidance:  The Department of Public Health released new guidance for restaurants.  Separate guidance documents were developed for restaurants offering dine-in services and those with out-door dining, take-out, and delivery .  Restaurants should follow the guidance according to the county in which they operate (https://covid19.ca.gov/roadmap-counties/).  Based on specified health indicators, some counties will be shifting from dine-in service and restaurants are encouraged to check the website regularly for the current status of their county of operation.

  • Regulatory Workshop on Security of Financial Institutions:  The Federal Trade Commission will host a virtual workshop on Monday, July 13, 2020, 6 a.m. – 1:30 p.m. PST to seek input on proposed changes to the Gramm-Leach-Bliley Act’s Safeguards Rule, which requires financial institutions to develop, implement, and maintain a comprehensive information security program.   According to the announcement, the workshop will feature five panel discussions on topics such as the costs and benefits of information security programs, encryption, and multifactor authentication.  A link to view the workshop will be posted to the event page the morning of the event.  https://www.ftc.gov/news-events/events-calendar/information-security-financial-institutions-ftc-workshop-examine?utm_source=govdelivery

  • CA Recognized in National OZ Report:  The White House Opportunity and Revitalization Council released a new report detailing best practices in how funds, public agencies, and communities are working together to create impact via the Opportunity Zone incentive. https://opportunityzones.hud.gov/sites/opportunityzones.hud.gov/files/documents/OZ_Best_Practices_Report.pdf CalOZ reports that several of the best practices highlighted come from California Opportunity Zones:

    • Launchpad’s work in Stockton to build a new coworking space for entrepreneurs

    • SoLa Impact’s work in Los Angeles to expand low-income housing

    • Main Street Launch’s work in Oakland to provide low-interest loans to create and expand restaurants in OZ tracts

    • RevOZ Capital’s work in San Bernardino to build a new mental health services facility.

DISASTER- AND ECONOMIC JUSTICE-RELATED LEGISLATION

  • US Commission on Truth, Racial Healing, and Transformation:  US Representative Barbara Lee introduced H Con Res 100, which (1) recognizes the 400th anniversary of the arrival of the first slave ship and the US debt of remembrance not only to those who lived through the injustices of slavery but also to their descendants; and (2) proposes a US Commission on Truth, Racial Healing, and Transformation to properly acknowledge, memorialize, and be a catalyst for progress, including toward permanently eliminating persistent racial inequities.  The bill is currently pending in the House Committee on the Judiciary.  https://www.congress.gov/bill/116th-congress/house-concurrent-resolution/100?q=%7B%22search%22%3A%5B%22H+Con+Res+100%22%5D%7D&s=4&r=1

  • Federal Appropriations Bill Approved by Subcommittee:  The US House Committee on Appropriations’ Subcommittee on Financial Services and General Government approved its FY 2021 appropriations bill on July 8, which includes $273.5 million for the CDFI Fund, an increase of 4% compared to FY 2020 funding levels.

  • Small Business Hearings in US House of Representatives:  The US House Committee on Small Business has scheduled several hearings for the month of July, which can be viewed on the committee’s YouTube channel (https://www.youtube.com/channel/UCnYcuO2JQhVbnCR8ltmSacQ?view_as=subscriber).

    • Wednesday, July 15, beginning at 10:00 am (PST):  Long-Lasting Solutions for a Small Business Recovery

    • Thursday, July 16, beginning at 10:00 am (PST):  Putting America Back to Work: The Role of Workforce Development and Small Business Rehiring (Subcommittee on Innovation and Workforce Development)

    • Friday, July 17, beginning at 7:30 am (PST):  Oversight of the Small Business Administration and Department of Treasury Pandemic Programs

  • COVID-19 Payment to Tribal Governments:  US Representative Tom O'Halleran (AZ-1) introduced HR 7557 on July 9, 2020, which extends the coverage of Coronavirus Relief Fund payments allocated under the CARES Act to tribal governments from December 30, 2020 to December 30, 2022. The bill is cosponsored by Congressman Paul Cook (CA-08).  The CARES Act was signed into law on March 27, 2020, allocating $8 billion for tribal governments.  According to the press announcement, tribes across the US did not receive any funds until May 5, 2020, well after the bill’s statutory deadline. During this time, the Navajo Nation in Arizona’s First Congressional District became the most concentrated COVID-19 hotspot in the nation.  This bill extends the deadlines to “provide Tribal nations more time for the proper expenditure of these funds. Indian Country is devastated by COVID-19 and due to the long years of neglect of infrastructure it will take much longer to get to a level of providing sufficient care,” stated Navajo Nation President Jonathan Nez.  https://www.congress.gov/bill/116th-congress/house-bill/7557/text?r=16&s=8

  • PPP Forgiveness:  US Senator Kevin Cramer (ND) introduced S 4117, which authorizes forgiveness of PPP loans under $150,000.  There are 6 co-authors.  The bill is currently pending in the Senate Committee on Small Business and Entrepreneurship.  https://www.congress.gov/bill/116th-congress/senate-bill/4117?q=%7B%22search%22%3A%5B%22S+4117%22%5D%7D&s=1&r=1

GRANTS AND BEST PRACTICES THAT SUPPORT ECONOMIC RECOVERY

  • Workforce Training Grants for Community Colleges:  The US Department of Labor announced the availability of $40 million in Strengthening Community Colleges Training Grants to expand community colleges’ ability to meet labor market demand for a skilled workforce.  https://www.dol.gov/newsroom/releases/eta/eta20200708

  • Women in Apprenticeship and Nontraditional Occupations Grant:  The US Department of Labor announced $4.1 million in grants to up to 11 community-based organizations to recruit, mentor, train and retain more women in quality apprenticeship programs, and to help those women pursue successful careers in manufacturing, infrastructure, cybersecurity, healthcare and other industries.  https://www.dol.gov/newsroom/releases/eta/eta20200702-0  The Women in Apprenticeship and Nontraditional Occupations (WANTO) grant will be awarded to organizations that demonstrate that they can provide one or more of the following types of technical assistance:

    • Developing pre-apprenticeship, apprenticeship or nontraditional skills training programs to prepare women for those careers.

    • Providing ongoing orientations for employers, unions and workers on creating a successful environment for women to succeed in those careers.

    • Setting up support groups, facilitating networks and/or providing supportive services for women to improve their retention.

  • New Program to Help Communities Meet Local Financial Needs:  Sacramento County announced the deposit of $80 million in local lending institutions which met the county’s Community Reinvestment Act (CRA) program criteria. The CRA Program authorizes the placement of public deposits from the county’s Pooled Investment Fund in one-year, fixed-rate certificates of deposit with qualified financial institutions that meet the credit needs of the community, including credit unions and community banks.  The four banks that were awarded deposits this year are:  Bank of the West; Banner Bank; East West Bank; and Five Star Bank.  This year’s CRA deposits of $80 million were up from $30 million in the prior year.   https://www.saccounty.net/news/latest-news/Pages/CRAProgramInvests%2480Millionin2020.aspx

  • Grant for CDFIs and CDFI Intermediaries:  Wells Fargo announced the new $250 million Open for Business CDFI Fund, which seeks to support nonprofit CDFIs, CDFI Intermediaries, and CDFI Funds that serve small businesses.  According to the announcement, Wells Fargo will be targeting organizations that serve businesses owned by racially and ethnically diverse people.  Funding can be used to support activities that assist businesses in accessing capital and other technical support, as well as developing long-term community resiliency programs.  Applications can be accessed using the invitation code “OFBcdfi.” Applications are due August 7, 2020.  https://www.cybergrants.com/pls/cybergrants/ao_login.login?x_gm_id=1958&x_proposal_type_id=67066

  • Trade Adjustment Assistance Program Updated:  The US Department of Labor published the final rule to update the regulations of its Trade Adjustment Assistance Program, a program designed to support workers adversely affected by foreign trade. The updated regulations reduce regulatory burden by modernizing, simplifying and clarifying state administration of the Trade Adjustment Assistance Program.  https://www.dol.gov/newsroom/releases/eta/eta20200710

DATA, SURVEYS, AND ANALYSES

  • State Unemployment Insurance Numbers Released:  EDD released unemployment insurance data for California for the week ending July 4.  https://www.edd.ca.gov/About_EDD/pdf/news-20-32.pdf  Among other information, the weekly UI report stated:

    • 233,915 UI and Pandemic Unemployment Assistance (PUA) claims were filed for the week ending July 4.

    • Between March 14 and week of July 4, 6.1 million UI and PAU claims have been filed with EDD.

    • $41.3 billion has been paid to out-of-work Californians since start of pandemic.

  • Unemployment Benefits Extended:  Governor Newsom signed AB 103, a budget trailer bill, which authorizes up to 20 additional weeks of UI benefits for longer term unemployed workers in California impacted by the COVID-19 pandemic.  There is also an additional seven weeks of benefits to the Pandemic Unemployment Assistance (PUA) program.  https://www.edd.ca.gov/About_EDD/pdf/news-20-29.pdf

  • Census COVID-19 Impact Report:  The US Census Bureau is sponsoring a website with key demographic information related to the US and COVID-19.  State and county-level data, among other information, is available for business establishments, employees in the workforce, households living below the federal poverty level, school enrollment and at-risk households.  This information, according to the website, is designed to support public policy makers in msking informed decisions.  https://www.congress.gov/bill/116th-congress/house-bill/7557/text?r=16&s=8

  • Household Pulse Survey:  The US Census Bureau released results from its weekly (June 25 to June 30, 2020) Household Pulse Survey.  https://www.census.gov/programs-surveys/household-pulse-survey/datasets.html  Among other findings, survey results are as follows:

    • 49.1% of American adults live in households which have experienced a loss in employment income.

    • 34.9% of American adults expect to experience a loss in employment income.

    • 10.4% of Americans lived in households where there was either sometimes or often not enough to eat in the previous 7 days.

    • 41.5% of adults had delayed getting medical care in the previous 4 weeks.

    • 25.9% of adults either missed last month’s rent or mortgage payment, or had slight or no confidence that their household could make the next payment on time.

  • Small Business Pulse:  The US Census Bureau released results from its weekly (June 4, 2020 to June 9, 2020) Small Business Pulse Survey.   This is the final issue.  https://www.census.gov/data/experimental-data-products/small-business-pulse-survey.html  Among other findings, the US Census reports:

    • 31.2% of CA respondents said they had supply chain interruptions, as compared to 32% nationally.

    • 14.1% of CA respondents reported having to reduce the number of paid employees.

    • 75.6% of CA respondents reported requesting PPP loans and 71.9% said they had received it.

    • 33.8% of CA respondents (28.2% nationally) said they had requested an EIDL and 25.8% of CA respondents said they had received an EIDL.

    • 5.4% of CA respondents said they had missed a loan payment during the pandemic.

    • 25.1% of CA respondents said they had been closed at least one day in the prior week.

UPDATES ON COVID-19 PROGRAMS

  • Guidance on Reporting Sick and Family Leave:  The US Treasury Department and the Internal Revenue Service released guidance (2020-54)  to employers which requires the reporting of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2.  https://www.irs.gov/pub/irs-drop/n-20-54.pdf

  • PPP Aggregate-Level Data Update:  The SBA released program utilization information for the Paycheck Protection Program.  As of June 30, 4.8 million PPP loans have been approved in the US for a total of $521.4 billion.  In California, 581,140 PPP loans have been approved for a total of $68.2 billion.  Link to a PowerPoint displaying data for loan activity through 6/30/2020:  https://www.sba.gov/sites/default/files/2020-07/PPP%20Results%20-%20Sunday%20FINAL-508.pdf

  • PPP Loan-Level Data Disclosure:  The US Small Business Administration, in consultation with the Treasury Department, announced the release of detailed loan-level data for the Paycheck Protection Program (PPP).  This disclosure covers each of the 4.9 million PPP loans that have been made and will include business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amounts with certain dollar ranges.  For loans under $150,000, which represent about 25% of all loans, the business names and addresses are being omitted.

  • EIDL Aggregate-Level Data Update:  The SBA released program utilization information for the Economic Injury Disaster Loan.  As of July 3, 2020, 2.2 million EIDL loans have been approved in the US for a total of $134.6 billion.  In California, 370,254 EIDL loans have been approved for a total of $24.8 billion.  Link to a PowerPoint displaying data for loan activity through 07/03/2020  https://www.sba.gov/document/report-covid-19-eidl-loans-report-7-03-20

  • SBA Weekly Lending Reports:  The US SBA released its weekly lending report for the week ending June 26, 2020.  The report includes information on 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 receives updates from the SBA on small businesses that are utilizing the two federal disaster loan programs, the Economic Injury Disaster Loan and Paycheck Protection Program.

SBA Disaster Assistance
CA Loans Approved (as of 7/3)
370,254
Dollar Amount of CA Loans Approved (as of 7/3)
$24,828,709,998
CA Loan Advances Processed (as of 7/3)
716,698
Dollar Amount of CA Loan Advances Processed
$2,261,317,000
Payment Protection Plan (as of 6/30)
581,140
Payment Protection Plan Approved (as of 6/30l)
$68,225,253,665
Great Plates Delivered (as of 7/9)
Letters of Intent Received from Local Administrators
53
DEMAND:  Estimated Weekly Individuals to be Served
3,137,041
Individuals Served This Week as of 7/7*
35,744
DEMAND:  Estimated Food Providers Required to Meet Demand
450,000
Food Providers Contracted as of 7/7*
667
*Data received from Great Plates Data Portal updated twice per week. 
 
 
 
 
 
 

 

 

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