JEDE COVID-19 Update for July 21, 2020

MAJOR ANNOUNCEMENTS

• Outdoor Hair Cuts:  Governor Gavin Newsom announced that hair salons and barbershops are now authorized to offer services outdoors during the COVID-19 pandemic.  While hair salons and barbershops were allowed to open in May, many were required to close again on July 13 when the governor shut down indoor businesses in counties on the state’s monitoring list.  The California Department of Public Health released updated guidance.  https://files.covid19.ca.gov/pdf/guidance-outdoor-hair-salons--en.pdf

• Debt Relief for Veterans:  The US Department of Veterans Affairs (VA) announced its commitment to extend debt relief to veterans adversely impacted by COVID-19 to the end of 2020.  According to the announcement, the VA is suspending all actions on veteran debts under the jurisdiction of the US Treasury Department, including the suspension of collection action or extending repayment terms on preexisting VA debts, whichever the veteran prefers.  https://www.va.gov/opa/pressrel/pressrelease.cfm?id=5485

• For benefit debts, veterans should contact the VA Debt Management Center at 1-800-827-0648.

• For health care debts, veterans should contact the Health Resource Center at 1-866-400-1238 or https://www.pay.gov for payments.

• Federal Stimulus Bill:  The US House of Representatives and the US Senate continue to work on a blueprint for the fourth Coronavirus relief package.  According to NCSL, the US Senate has outlined a $1 trillion plan that provides incentives for schools to re-start, another round of stimulus checks, and extension of unemployment benefits. The Republican blueprint, as reported by NCLS, does not currently include additional aid to state and local governments. The US House of Representatives passed HR 6800 two months ago, which included $3.5 trillion for a range of economic recovery activities, including $500 billion to states to compensate for revenue shortfalls.  https://www.ncsl.org/ncsl-in-dc/publications-and-resources/capitol-to-capitol-july-20-2020.aspx

• VETS Apprenticeships:  The US Department of Veterans Affairs announced a new VETS Apprenticeship program to assist transitioning veterans and their spouses develop their own post-service career pathway. Many of these internships are paid and result in nationally recognized credentials.  Apprenticeship Placement Counselors are available to assist in identifying and obtaining placements. Counselor meetings are available online and through selected military instillations, including three California locations (Marine Corps Air Station Miramar, Naval Base San Diego, and Travis Air Force Base).  https://blog.dol.gov/2020/06/22/apprenticeship-pilot-for-transitioning-service-members-will-boost-career-skills

• First US Bank Joins PCAF:  Morgan Stanley announced it will be joining the Partnership for Carbon Accounting Financials (PCAF), which makes it the first US-based global bank to join.  The PCAF was launched in 2019 to provide a platform for the development of a Global Carbon Accounting Standard for the financial industry.  Current PCAF membership includes 60+ banks and investors, representing over $5.3 billion in assets.  https://www.morganstanley.com/press-releases/morgan-stanley-joins-leadership-of-global-carbon-accounting-part

• EU Recovery Package:   European Union’s 27 leaders reached agreement on a €1.1 trillion seven-year multiannual financial framework (regular EU budget) and  a €750 billion coronavirus recovery package, the Next Generation EU.  To raise capital for the recovery package, the European Commission will, for the first time, issue significant amounts of bonds over a six-year period with maturity dates extending to 2058.  https://www.economist.com/europe/2020/07/21/the-eus-eu750bn-covid-19-plan-is-historic-but-not-quite-hamiltonian?fsrc=newsletter&utm_campaign=the-economist-today&utm_medium=newsletter&utm_source=salesforce-marketing-cloud&utm_term=2020-07-21&utm_content=article-link-1

• No Power Shut Offs in Sacramento:  The Sacramento Metropolitan Utility District has extended its policy to not disconnect power due to non-payment through January 4, 2021.  Under the policy, SMUD will also not add late fees to residential and commercial customer’s bills.  https://www.smud.org/en/Corporate/About-us/News-and-Media/Coronavirus-COVID-19#Help-with-your-bill

• Feds Propose Prohibiting ESG Investment Funds:  The US Department of Labor is proposing amendments to the ‘‘Investment duties’’ regulation under Title I of the Employee Retirement Income Security Act of 1974 (ERISA).  According to the Federal Register announcement, the proposed change would “confirm that ERISA requires plan fiduciaries to select investments and investment courses of action based solely on financial considerations relevant to the risk-adjusted economic value of a particular investment or investment course of action.”  This proposed change has raised concerns by investor groups who have increasingly included material impacts of social and environmental issues within the consideration of relevant in investment selections.  Comments on the proposal must be submitted on or before July 30, 2020.  https://www.govinfo.gov/content/pkg/FR-2020-06-30/pdf/2020-13705.pdf

DATA, SURVEYS, AND ANALYSES

• Black-Middle Class and COVID-19:  The Pew Foundation has released a new Stateline analysis, Pandemic Threatens Black Middle-Class Gains.  https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2020/07/21/pandemic-threatens-black-middle-class-gains?utm_source=National+Conference+of+State+Legislatures&utm_campaign=6778882bf8-20_JULY_2020_NCSL_TODAY&utm_medium=email&utm_term=0_1716623089-6778882bf8-377792280

• Global Dashboard on COVID-19 Policies:  The US Chamber of Commerce is hosting a Global Dashboard on COVID-19 Policies, which tracks pandemic policies impacting global business.  https://www.uschamber.com/international-affairs-division/covid-dashboard

• Global Government Responses to COVID:  The International Monetary Fund is hosting a webpage summarizing key economic responses by 196 governments to limit the human and economic impact of the COVID-19 pandemic. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19

• Climate Change as a Systemic Risk:  Letters, signed by 72 signatories representing over $1 trillion in assets under management, were sent to federal and state investment and financial regulators calling on the agencies to consider how their regulatory decisions could intensify the climate crisis and to integrate the consideration of climate risk within their broader regulatory mandates.  Health crises, such as global pandemic, have long been included on the list of likely negative impacts of climate change.  The letters went to the heads of the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the Commodity Futures Trading Commission, state insurance regulators, the Federal Insurance Office, the Federal Housing Finance Agency, and the Financial Stability Oversight Council.  According to the announcement, the signatories included major institutional investors like CalSTRS, the New York State and New York City Comptrollers, the Maryland State Treasurer, and the Seattle City Employee Retirement System, as well as former US financial regulators, venture capital groups, trade associations, and major philanthropic foundations.  https://www.ceres.org/news-center/press-releases/40-investors-nearly-1-trillion-join-other-leaders-urge-us-financial

GRANTS

• Affordable Hydrogen Production and Storage:  The US Department of Energy announced it has awarded $64 million for 18 projects under its H2@Scale initiative.   California awards include the University of California Irvine ($4 million) for research and development, Hornblower Yachts in San Francisco ($7.9 million) for a demonstration project, and Electric Power Research Institute, Inc. in Palo Alto ($2 million) for a workforce development initiative.  https://www.energy.gov/articles/energy-department-announces-approximately-64m-funding-18-projects-advance-h2scale

  • 2020-21 Awards:  https://www.energy.gov/eere/fuelcells/downloads/fiscal-year-2020-h2scale-funding-opportunity-announcement-selections

  • Hydrogen and Fuel Cell Technologies Office:  https://www.energy.gov/eere/fuelcells/hydrogen-and-fuel-cell-technologies-office

UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS

• HUB Zone Fact Sheet:  The BA released a new fact sheet for businesses located in HUB Zones, including information on the temporary suspension of re-certifications.   https://www.sba.gov/brand/assets/sba/resource-partners/HUBZone-COVID19-factsheet.pdf?utm_medium=email&utm_source=govdelivery

• PPP Document Updates:  The SBA released new documents for the Paycheck Protection Program.

  • Lender Agreement for Federally Insured Depository Institutions, Federally Insured Credit Unions, Farm Credit System Institutions:  https://www.sba.gov/document/sba-form-3506-ppp-lender-agreement

  • Lender Agreement for Non-Banks and Non-Insured Depository Institutions:  https://www.sba.gov/document/sba-form-3507-ppp-lender-agreement-non-bank

  • Procedural Guidance on the Refinance of EIDL Loans with PPP Loan Proceeds:  https://www.sba.gov/document/procedural-notice-5000-20032-refinance-eidl-loans-ppp-loan-proceeds-lender-remittance-eidl-refinance-proceeds-sba

  • IN CASE YOU MISSED IT - SBA Administrator Message to Lenders in Underserved Communities:  https://www.sba.gov/document/policy-guidance-sba-administrator-message-lenders-re-underserved-communities

• PPP Aggregate-Level Data Update:  The SBA released program utilization information for the Paycheck Protection Program.  As of July 17, 4.9 million PPP loans have been approved in the US for a total of $517.4 billion.  In California, 584,057 PPP loans have been approved for a total of $67.4 billion.  Link to a PowerPoint displaying data for loan activity through 7/17/2020:  https://www.sba.gov/document/report-paycheck-protection-program-report-through-july-17-2020

• EIDL Aggregate-Level Data Update:  The SBA released program utilization information for the Economic Injury Disaster Loan.  As of July 15, 2.6 million EIDL loans have been approved in the US for a total of $150.1 billion.  In California, 422,078 EIDL loans have been approved for a total of $27.4 billion.  Link to a PowerPoint displaying data for loan activity through 07/15/2020: https://www.sba.gov/document/report-covid-19-eidl-loans-report-07-15-20

• SBA Weekly Lending Reports:  The US SBA released its weekly lending report for the week ending July 17, 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.

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