JEDE COVID-19 Update for the Week Ending July 31, 2020
MAJOR ANNOUNCEMENTS
Timeline for County Assessment Appeals Boards to Respond Extended: Governor Newsom extends the deadline for a County Assessment Appeals Board to respond to any pending assessment appeal filed with a County Assessment Appeals Board on or before March 4, 2020. The new deadline for rendering a decision is January 31, 2021.
New Economic and Workforce Development Dashboard: California Competes, the education nonprofit, launched the California Postsecondary to Prosperity Dashboard to provide a better understanding of the challenges faced by different regions and demographic groups in California, including individuals who identify as Latinx, Black, and Native American. The organization believes the new dashboard serves as an important first step in addressing education and training disparities while working toward a stronger and more vibrant future for the state’s diverse communities.
Manufacturing Remains Open: The California Manufacturing and Technology Association released a reminder this week that while some businesses are needing to re-close, manufacturers in California are still able to remain open by complying with previously released guidelines. CMTC also highlighted their partnership with Autodesk and the State of California to create the "Safely Making California” Marketplace, which helps to connect California manufacturers to employers who have the need to purchase non-medical grade Personal Protective Equipment (PPE).
Minimum Wage Increases in January: Governor Newsom announced he will be declining to use his authority to suspend the scheduled minimum wage increase for 2021, which means on January 1, 2021, California minimum wage will increase to $13.00 per hour for businesses with 25 or fewer employees, and to $14.00 per hour for businesses with more than 25 employees. Existing law provides an economic disaster off-ramp in any year the Governor determines the economy meets certain specified criteria. The deadline for triggering the January 1 wage increase is August 1.
Minimum Wage Increase: Rob Lapsley with the California Business Roundtable published an opinion piece in the Fox and Hound relating to the Governor’s decision to allow the next step in the state minimum wage to go into effect on January 1, 2021.
Families Food Box Program Reaches 50 Million Boxes Delivered: The US Department of Agriculture announced that its Farmers to Families Food Box Program has distributed over 50 million food boxes to families affected by the COVID-19 pandemic. The program is a win-win for farmers who were looking for new markets for their unsold product which would have been sold to restaurants or exported, as well as families who face food insecurities due to the coronavirus.
$765 Million Loan to Eastman Kodak Company: The US International Development Finance Corporation (DFC) announced the signing of a letter of interest to provide a $765 million loan to Eastman Kodak Company (Kodak) to support the launch of Kodak Pharmaceuticals, a new arm of the company that will produce critical pharmaceutical components. The project marks the first use of new authority delegated by a presidential executive order, which authorizes DFC and the US Department of Defense to support the domestic response to COVID-19 under the Defense Production Act. According to the announcement, “Kodak Pharmaceuticals will produce critical pharmaceutical components that have been identified as essential but have lapsed into chronic national shortage. Although Americans consume approximately 40% of the world’s supply of bulk components used to produce generic pharmaceutics, only 10% of these materials are manufactured in the United States.
Loan for the US Post Office: The US Department of the Treasury announced that it reached an agreement with the United States Postal Service (USPS) on the terms and conditions of a loan of up to $10 billion to the USPS, as authorized by the CARES Act. The CARES Act authorized the loan to cover operating expenses if the USPS determines that, due to the COVID-19 emergency, it will not have sufficient funds to operate.
California’s Small Business Recovery: California’s Office of the Small Business Advocate hosted a digital discussion on small businesses, California’s Small Business Recovery. This important discussion was jointly led by California’s Small Business Advocate, Isabel Guzman, and Co-Chair of the Governor's Task Force on Business and Jobs Recovery, Tom Steyer. They were joined by several entrepreneurs from around the state, including: Patti Röckenwagner, co-owner of Röckenwagner Bakery Group, Los Angeles; Lili Klu, owner of Lili K Couture, San Diego; Maria Fernanda Ahumada Martinez, chef & founder of La Jacka Mobile Food Truck & The Hot Spot Kitchen, Fresno; Gwen Kaplan, founder of ACE Mailing, San Francisco; and Tara Lynn Gray, chief executive officer of Fresno Metro Black Chamber of Commerce, Fresno.
CALASIAN - API BUSINESS ROUNDTABLE (August 5 and 6)
The CalASIAN is holding its 11th Annual Legislative Summit on August 5-6. The first day will be a Summit with a robust program centering around the future of business and inclusive economies. The second day will consist of virtual Legislative Office visits with a variety of Legislators from across the State. (Flyer Attached) Please register through the following link: www.calasianlegislativesummit.eventbrite.com
11th Annual Legislative Summit
Date: Wednesday, August 5, 2020
Time: 10:00 am – 1:00 pm PST
Virtual Legislative Office Visits
Date: Thursday, August 6, 2020
Time: Between 9:00 am – 1:50 pm PST
*If your organization is holding a major FREE event that focuses on economic, business, workforce, or community development, JEDE is happy to assist you in getting the word out. For information on webinars, please send the information to Ben at Benjamin.Warheit@asm.ca.gov. Information on other events, such as conferences, can be emailed to Toni at Toni.Symonds@asm.ca.gov.
DISASTER- AND ECONOMIC JUSTICE-RELATED LEGISLATION
JEDE Hearing on Small Business Penalty Reduction Legislation: The JEDE Committee is holding a legislative hearing on Tuesday, August 4, 2020, beginning at 1:30 pm. The Committee is hearing SB 1457 (Borgeas) Small Business Penalty Reductions. JEDE has created a special webpage for this hearing.
Informational Hearing on Proposed Consumer Financial Protection Department: Assembly Committee on Budget and the Assembly Budget Subcommittee 6 are holding an informational hearing on the proposed Consumer Financial Protection Department on Thursday, August 6, 2020. The hearing is scheduled to begin upon the call of the Chairs. Written testimony can be submitted to: www.BudgetSub6@asm.ca.gov.
Job Killer List: California Chamber of Commerce maintains a job killer list for bills the organization believes “threaten California’s economic recovery and would hurt the ability of employers to rehire or maintain employment of California workers should they become law.”
DATA, SURVEYS, AND ANALYSES
State Unemployment Insurance Numbers Released: EDD released unemployment insurance data for California for the week ending July 23. Among other information, the weekly UI report stated:
482,783 UI and Pandemic Unemployment Assistance (PUA) claims were filed for the week ending July 23.
Between March 14 and week of July 23, 7.6 million UI and PAU claims have been filed with EDD.
$55 billion has been paid to out-of-work Californians since start of pandemic.
June Personal Income Data: The US Bureau of Economic Analysis released June 2020 personal income data. According to the announcement, personal income decreased $222.8 billion (-1.1%). Disposable personal income decreased $255.3 billion (-1.4%) and personal consumption expenditures increased $737.7 billion (5.6%). The decrease in personal income in June reflected lower overall payments made to individuals from federal economic recovery programs.
JEDE Employment Cost Index Data: The US Bureau of Labor Statistics released June 2020 employment cost index data. According to the announcement, compensation costs for private industry workers increased 2.7% over the year and the cost of benefits rose 2.0% over the preceding 12-month period. Employer costs for health benefits increased 1.9 percent for the 12-month period ending in June 2020.
GRANTS, LOANS, AND INVESTMENT CAPITAL
Minority CARES: Community Capital Management has released a video on its Minority Community Advancement Racial Empowerment Strategy, also known as Minority CARES. According to the announcement, the new video highlights the history of economic injustice and the Minority CARES vision for an impact investment strategy that has a positive impact in underserved minority communities.
Grants for Immigration Services: The US Citizenship and Immigration Services is accepting applications for two funding opportunities under the Citizenship and Assimilation Grant Program:
Clean Mobility Options Voucher Pilot: The California Air Resources Board announced it will begin accepting applications to its Clean Mobility Options Voucher Pilot on October 20, 2020. The $20 million in funding will be awarded on a first-come, first-served basis. $2 million of the $20 million is set aside for California Native American tribes. Funding can be used for the design and implementation of zero-emission carsharing, carpooling/vanpooling, bikesharing/scooter-sharing, innovative transit services, and ride-on-demand services in California's historically underserved communities.
EDA Grant Opportunities: The US Economic Development Administration (EDA) is still accepting applications for funding under its CARES Act appropriations. According to the amended NOFA for FY 2020, funding is available to rural and urban areas for the purpose of making investments that support construction, non-construction, technical assistance, and revolving loan fund projects under EDA’s Public Works and EAA programs.
EDA CARES Act Grant Awards: The US Department of Commerce’s Economic Development Administration (EDA) announced the following CARES Act Recovery Assistance grant awards:
$7.8 million to universities for the purpose of increasing their capacity to support regional economic development strategies in response to the coronavirus pandemic. This includes $300,000 to the California State University, Chico, to advance efforts of the Center for Economic Development and “its partners in providing technical assistance to entrepreneurs, businesses, educational partners, and communities on business modeling, marketing resources, fiscal management and diversification, and workforce guidance to enable business viability through the coronavirus pandemic and future business disruptions.”
$38 million to capitalize and administer Revolving Loan Funds (RLFs) that support small businesses and entrepreneurs adversely affected by the coronavirus pandemic across Southern California. According to the announcement, grant awards and recipients include:
$11 million to the Los Angeles County Development Authority to small, diverse businesses in Los Angeles County, and augment business recovery assistance programs currently underway to avert job losses and closure.
$5.4 million to the County of San Joaquin to serve businesses in San Joaquin County that have been impacted by the coronavirus pandemic.
$4 million to Pacific Coast Regional Small Business Development Corporation, Los Angeles, to serve coronavirus-impacted businesses in the cities of Alhambra, Artesia, Bell, Bellflower, Bell Gardens, Carson, Commerce, Compton, Cudahy, Culver City, Downey, El Segundo, Gardena, Hawthorne, Huntington Park, Inglewood, Santa Monica, Lakewood, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Manhattan Beach, Maywood, Montebello, Monterey Park, Norwalk, Paramount, Pico Rivera, Rosemead, San Gabriel, Santa Monica, Signal Hill, South Gate, Torrance, and Vernon.
$3.6 million to PACE Finance Corporation, Los Angeles, to capitalize and administer an RLF that will provide loans to coronavirus-impacted businesses in the cities of Baldwin Park, Bell Carson, Boyle Heights, Commerce, Compton, Culver City, Diamond Bar, Duarte, East Los Angeles, El Monte, South El Monte, Gardena, Hawthorne, Highland Park, Huntington Park, Inglewood, Lawndale, Lincoln Heights, Long Beach, Los Angeles, Lynwood, Maywood, Monrovia, Pomona, Rosemead, San Dimas, Southgate, West Covina, and Alhambra.
$2.7 million to the Economic Development Collaborative-Ventura County, Camarillo, to serve coronavirus-impacted businesses in Ventura County.
$2.7 million to the City of Long Beach to serve small businesses to transition, rebuild, and reopen as a result of the coronavirus pandemic in Long Beach.
$2.6 million to the city of Los Angeles, to serve coronavirus-impacted businesses in Los Angeles.
$1.8 million to the city of San Diego to serve coronavirus-impacted businesses in San Diego and Chula Vista.
$913,000 to the city of Fresno to serve businesses struggling as a result of the coronavirus pandemic in Fresno.
$858,000 to the County of Riverside Business and Community Services, Riverside, to serve coronavirus-impacted businesses in Riverside County.
$836,000 to the Success Capital Expansion & Development Corporation, Modesto, to assist coronavirus-impacted businesses in recovery, growth, and workforce needs in Stanislaus County.
$550,000 to the city of El Centro to serve corona-impacted businesses in El Centro.
$550,000 to the Fresno Area Hispanic Foundation, Fresno, to serve corona-impacted businesses in the city of Coalinga.
$550,000 to the Southland Economic Development Corporation, Santa Ana, to serve corona-impacted small businesses in San Luis Obispo and Tulare counties.
$15 million to capitalize and administer Revolving Loan Funds (RLFs) that support small businesses and entrepreneurs adversely affected by the coronavirus pandemic across Northern California. According to the announcement, grant awards and recipients include:
$5 million to the Redwood Region Economic Development Commission, Eureka, to serve coronavirus-impacted businesses in Humboldt County.
$2.1 million to the California Association for Local Economic Development, Sacramento, to serve coronavirus-impacted businesses throughout California.
$1.7 million to the County of Monterey to coronavirus-impacted businesses in Monterey County.
$1.4 million to 3CORE Inc., Chico, to serve coronavirus-impacted businesses in Butte, Glenn, and Tehama counties.
$1.1 million to the Superior California Economic Development, Redding, to serve small and mid-sized businesses in Shasta, Siskiyou, Trinity, and Modoc counties.
$814,000 to the city of Berkeley, to serve coronavirus-impacted small businesses in Berkeley.
$550,00 to the city and county of San Francisco, to serve coronavirus-impacted businesses in the city and county of San Francisco.
$550,000 to the city of Oakland, to serve coronavirus-impacted small businesses in Oakland.
$550,000 to California Capital FDC, Sacramento, to coronavirus-impacted small businesses in Sacramento, Yolo, El Dorado, Placer, and Nevada counties.
$550,000 to Fresno Community Development Financial Institution, Fresno, to serve coronavirus-impacted businesses in San Benito county.
$550,000 to the Economic Development and Financing Corporation, Ukiah, to serve coronavirus-impacted businesses in Mendocino and Lake counties.
Orange Cove Receives Infrastructure Funds: US Department of Commerce’s Economic Development Administration (EDA) announced a $1.9 million grant to the city of Orange Cove, to provide sewer and roadway infrastructure improvements. The infrastructure improvements will be built within an Opportunity Zone and matched with $485,700 in local funds. This work is expected to create or retain 330 jobs.
UPDATES ON COVID-19 RESPONSE AND RECOVERY PROGRAMS
Rehabilitation Tax Credit: The US Internal Revenue Service granted an extension on the time allowed for a project to satisfy the substantial rehabilitation test and remain compliant with the requirements of the rehabilitation credit. Certain taxpayers will now have until March 31, 2021, to satisfy the test.
PPP Aggregate-Level Data Update: The US Small Business Administration released program utilization information for the Paycheck Protection Program (PPP). As of July 24, 5 million PPP loans have been approved in the US for a total of $519.5 billion. In California, 597,746 PPP loans have been approved for a total of $67.7 billion. Link to a PowerPoint displaying data for loan activity through 7/24/2020:
EIDL Aggregate-Level Data Update: The US Small Business Administration released program utilization information for the Economic Injury Disaster Loan (EIDL). As of July 26, 2.9 million EIDL loans have been approved in the US for a total of $163.8 billion. In California, 469,484 EIDL loans have been approved for a total of $29.6 billion. Link to a PowerPoint displaying data for loan activity through 07/26/2020.
SBA Weekly Lending Reports: The US Small Business Administration (SBA) released its weekly lending report for the week ending July 24, 2020. Information includes race, ethnicity, gender, and veteran participation in the SBA 7(a), 504, and Advantage Loan Programs.
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.
US Small Business Administration Disaster Assistance
CA Loans (EIDL) Approved (as of 7/27)
469,484
Dollar Amount of CA Loans (EIDL) Approved (as of 7/27)
$29,697,072,596
CA Loan Advances (EIDL) Approved (as of 7/15)
809,792
Dollar Amount of CA Loan Advances (EIDL) Approved (as of 7/15)
$2,666,662,000
Payment Protection Plan (as of 7/24)
597,746
Payment Protection Plan Approved (total) (as of 7/24)
