Federal Small Business Loan Programs Refunded: The US Congress passed and the President signed a $484 billion COVID-19 relief bill. This is the fourth in a series of bills enacted by the federal government to combat the coronavirus. Among other funding, the bill provides $310 billion for the Paycheck Protection Program and $60 billion for the Economic Injury Disaster Loan Program.
Forbearance on Student Loans: Governor Newsom announced an agreement with 21 out of the 24 largest student loan servicers in the state of California to provide a 90-day forbearance on student loan payments. According to Newsom, borrowers may stop repaying their loans without facing penalties such as late fees or fines, debt collection lawsuits, or negative impacts to their credit ratings.
No Garnishment of Disaster Relief Payments: Governor Newsom signed an executive order (N-54-20) to prohibit debt collectors from garnishing COVID-19 related relief to individuals. Funds may still be garnished for child support, family support, spousal support, or criminal restitution for victims.
Economic Impact Payments: The US Treasury Department and the IRS released state-by-state figures for Economic Impact Payments, with 88 million individuals receiving payments worth nearly $158 billion in the program’s first three weeks. As of April 17, the IRS issued 88.1 million payments to taxpayers across the nation. According to the report, 9,127,137 Californians received a total of $15,894,426,934. More payments are continuing to be delivered each week.
New Food and Wellness Partnership to Feed Seniors: Governor Newsom announced a new initiative, funded by FEMA, to leverage the capacity of local restaurants to provide healthy, low-cost meals to low-income seniors and other at-risk populations. For a total reimbursement of $66 per day: $16 breakfast, $17 lunch; and $28 dinner. In addition to the meal delivery program, the Governor announced a partnership to make wellness check-in calls on seniors and the expansion of Friendship Line California to help combat social isolation. These actions will support the approximately 1.2 million Californians over the age of 65 who live alone.
California SBDCs Recognized: Forbes published an article explaining how independent contractors and gig workers can apply for COVID-19 response programs. The article specifically commends the NorCal SBDC. “The SBA website sets forth these means of contact: phone: SBA Disaster Assistance Customer Service Center at 800-659-2955 and Email: disastercustomerservice@sba.gov. If you can’t get through to the SBA, try contacting the Small Business Development Center (SBDC) in your area. For example, the Northern California SBDC has been extremely helpful, and you can actually talk to a person live. (See www.asksbdc.com or call 833-ASK-SBDC.) Advisors can help you with both the PPP loan process and the EIDL loans/grants as well as special programs in your state.” [bold added by Toni] https://www.forbes.com/sites/allbusiness/2020/04/24/how-to-get-1000-if-you-are-a-freelancer-gig-worker-or-independent-contractor/#5bda31d95bea
PROGRAM ANALYSIS
Gaps in COVID-19 Paid Leave Policies: The California Budget Center has released a report that identified gaps in the federal and state paid family leave and paid sick leave policies, which leave many low wage and/or part time workers without coverage. The report includes recommendations on federal and state policy changes. https://calbudgetcenter.org/resources/covid-19-policy-gaps-providing-california-workers-with-paid-leave/
ECONOMIC RECOVERY
Economic Modeling for Southern California: The Los Angeles County Economic Development Corporation (LAEDC) released an estimate of the coronavirus emergency on the 10-county Southern California region. According to the research by the LAEDC Institute for Applied Economics, the Southern California region will have 2.8 million fewer jobs in May 2020, as compared to May 2019. That’s a 27.4% decline in jobs and unemployment is projected to hit 31.4% overall in the 10-county region in May. The report includes estimates for areas within Southern California. https://laedc.org/wp-content/uploads/2020/04/LAEDC-IAE_SoCal-COVID19-Jobs_04.21.20_FINALe.pdf
Inland Empire Update: Dr. Christopher Thornberg, Director of the UCR School of Business Center for Economic Forecasting and Development, released an on-demand YouTube video in which he discusses the immediate economic and fiscal concerns surrounding the COVID-19 pandemic for the Inland Empire and California in general. https://www.youtube.com/watch?v=SwkAotv3E6g&feature=youtu.be
COVID-19 Marketing Monitoring Group: The Securities and Exchange Commission announced the formation of an internal, cross-divisional COVID-19 Market Monitoring Group. This temporary, senior-level group will assist the Commission and its various divisions and offices in monitoring the effects of COVID-19 on markets, issuers, and investors—including our Main Street investors. https://www.sec.gov/news/press-release/2020-95
Principles for a Common-Sense, Street-Smart Recovery: PolicyLink released its recovery strategy, “Principles for a Common-Sense, Street-Smart Recovery: The Complete Set,” which emphasizes the need for leaders to be dedicated to the complete set of equity principles, including: Make Racial Equity a Central Point; Put People First; Invest In Community Infrastructure; Build an Equitable Economy; and Protect and Expand Community Voice and Power. https://www.policylink.org/resources-tools/recovery-principles-complete-set
Economic Impact of COVID-19 on the US Economy: The Greater Sacramento Economic Council released an update to its “U.S. Economic Forecast and COVID-19,” which provides a range of business and employment data, including a survey of economic forecasts and analyses from Goldman Sachs, JP Morgan, and UCLA Anderson School of Management, among others. https://www.selectsacramento.com/wp-content/uploads/2020/04/COVID19-OnePager-04.24.20.pdf
New COVID-19-Related Data Resource: The U.S. Census Bureau released a new resource page to help federal agencies, businesses, and communities make decisions related to the COVID-19 pandemic. The page is similar to the Census Bureau’s resources pages created during natural disasters. The page includes information on population demographics, economic indicators, and businesses, as well as a new interactive data hub to help users access previously-released data from the American Community Survey and the County Business Patterns program. https://covid19.census.gov/?utm_campaign=20204023msecos1ccdtars&utm_medium=email&utm_source=govdelivery
Data Transparency on CARES Act: Federal Reserve Board outlined the extensive and timely public information it will make available regarding its programs to support the flow of credit to households and businesses. The sharing of this information is designed to foster economic recovery. Specifically, the Board will report on a monthly basis CARES Act funding, including the: (1) Names and details of participants in each facility; (2) Amounts borrowed and interest rate charged; and (3) Overall costs, revenues, and fees for each facility. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200423a.htm
On April 23 there were 15 ships at port: 10 container; 1 liquid bulk; 2 dry bulk/general cargo; 1 cruise ship; and the USNS Mercy.
There were 40 cancelled sailings during Q1 of 2020.
An additional 30 scheduled sailings have been cancelled between April 20 and July 19, 2020.
The Port of Los Angeles website updates the ships in port, blank sailings, and other activities daily: https://www.portoflosangeles.org/
Port staff continued supporting efforts of Logistics Victory Los Angeles (LOVLA), the City of Los Angeles resource for linking suppliers of COVID-19 Personal Protective Equipment (PPE) with organizations in need of supplies: https://lovla.org/
GLOBAL ACTIONS
Japanize Financial Supports for Ag and Fisheries: As part of the Government of Japan’s COVID-19 emergency economic package, the Ministry of Agriculture, Forestry and Fisheries (MAFF) is expected to receive a 545 billion yen ($5 billion) supplementary budget. Over 35 percent of MAFF's budget will be allocated for spending to support the food service and related industries after the spread of COVID-19 slows. The livestock, dairy, horticulture, forestry, and fishery industries as well as products for export are eligible to receive support through the supplementary budget. https://gain.fas.usda.gov/#/
Netherlands Financial Supports for Potatoes: The Netherlands is one of Europe’s largest producers and one of the world’s largest exporters of frozen pre-fried potato products (mainly French fries) and heavily depends on export markets. COVID-19-related closures have resulted in 1.5 million MT of the 2019 ware potato harvest still being in storage. The industry has undertaken several initiatives to find alternative uses for almost one million MT. In addition, the Dutch government announced a €50 million program to compensate ware potato growers for the effects of the corona virus. https://gain.fas.usda.gov/#/
World Bank Predicts Sharp Decline in Remittances: Global remittances are projected to decline sharply by about 20% ($445 billion) in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown. The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country. https://www.worldbank.org/en/news/press-release/2020/04/22/world-bank-predicts-sharpest-decline-of-remittances-in-recent-history
The Coronavirus Global Response Fund: The European Union is joining global partners to kick-start a pledging effort – the Coronavirus Global Response Fund. Moneys raised will be used to develop fast and equitable access to safe, quality, effective and affordable diagnostics, therapeutics and vaccines against coronavirus. The initial funding goal is to raise €7.5 billion ($8.12 billion). https://europa.eu/covid19/coronavirus-global-response-eu-launches-pledging-effort-2020-04-24_en
IMPORTANT COVID-19 PROGRAM AND SERVICE UPDATES
Support for Mental Health: WellSpace Health operates a free Suicide Prevention and Crisis Line, available 24/7. Call 1-800-273-TALK (8255) or Text the word “HOPE” to 916-668-4226.
Supplemental Payment Tracker Down for Maintenance: The IRS “Get My Payment” tool will be down for maintenance from 10:00 pm through 1:00 am (Eastern Standard Time) on Thursday, April 23; Friday, April 24; and Saturday, April 25, 2020. https://www.irs.gov/coronavirus/get-my-payment
CDBG Fund Distribution: CALED and the League of Cities announced the submittal of a joint letter to the California Department of Housing and Community Development supporting the formula distribution of CDBG funds to non-entitlement communities. If HCD does make these changes, CALED believes it is a win-win for applicants and the department. The more simplified application process benefits communities, while project monitoring activities will be streamlined for HCD. (see attached)
Credit Liquidity Facility: The Federal Reserve is continuing to expand access to its Paycheck Protection Program Liquidity Facility. Currently, only depository institutions are eligible to participate in the PPPLF, including banks and credit unions. The expansion will include non-depository institution lenders, such as some Community Development Financial Institutions. The PPPLF supports the Payment Protection Program (PPP) by extending credit to financial institutions that make PPP loans, using the loans as collateral. The additional liquidity from the PPPLF increases the capacity of financial institutions to make additional PPP loans. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200423b.htm
New Cal Competes Awards: The Governor’s Office of Business and Economic Development announced that the California Competes Tax Credit Committee approved $74,507,665 million in tax credits for 20 companies projected to create 3,060 new, full-time jobs and more than $2,601,894,747 in new investments across California.
Grant Funding Coming: The US Department of Energy’s Office of Energy Efficiency and Renewable Energy announced its intent to issue, on behalf of the Advanced Manufacturing Office (AMO), a Funding Opportunity Announcement (FOA) to stimulate technology innovation, improve the energy productivity of American manufacturing, and enable the manufacturing of cutting-edge products in the United States. The FOA, entitled “FY20 Advanced Manufacturing Multi-topic FOA,” is intended to fund high-impact, applied research and development projects that integrate specified research opportunities across AMO. https://www.energy.gov/eere/articles/energy-department-announces-notice-intent-issue-funding-enhance-manufacturing
Removing Limits on Savings Account Transfers: The Federal Reserve Board announced an interim final rule to amend Regulation D, Reserve Requirements of Depository Institutions, to delete the six-per-month limit on convenient transfers from the "savings deposit" definition. The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200424a.htm
