Fed Chairman Cites Importance of State, Local Government Aid
Federal Reserve Chairman Jerome Powell is telling Congress that federal aid to state and local governments deserves their attention. In video testimony with the Senate Banking Committee and with the House Financial Services Committee, Powell said that the 13% of the American workforce who are employed by state and local governments represent a significant part of the economy.
Coronavirus Effects: Credit Drivers and Rating Consequences
The credit quality of some US public finance issuers decreased in May largely driven by the direct and indirect effects of the coronavirus-induced economic slowdown. Still, downgrades accounted for less than 20% of the public finance sector's rating actions, indicating the pandemic is not having a widespread effect on issuers' credit profiles.
SBA Reopens Economic Injury Disaster Loan Program
The SBA has reopened its Economic Injury Disaster Loan program to all small businesses. The reopening comes more than a month after the SBA quietly closed the program to new applicants, except for agriculture-related companies. The closure sparked a backlash from business groups and lawmakers.
BDA Joins CDFA in Support of Industrial Development Bonds Legislation
The BDA is joining forces with the Council of Development Finance Agencies in support of the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA). The bill, sponsored by Reps. Stephanie Murphy (D-FL) and Darin LaHood (R-IL), would modernize the Internal Revenue Code as it relates to small issue bonds, specifically the private activity bond rules for first-time farmers and manufacturing bonds.
New York Fed Announces Start of Additional Secondary Market Corporate Credit Facility Purchases on June 16
The Federal Reserve Bank of New York today announced that the Secondary Market Corporate Credit Facility (SMCCF) will begin buying corporate bonds on June 16. The New York Fed also released additional Frequently Asked Questions regarding the purchase strategy for these eligible assets.
COVID-19 Likely to Result in Increased Entrepreneurship Rates
Despite the more than 40 million unemployment filings and anticipated millions of small business closures that will result due to COVID-19, previous economic downturns suggest that there may soon be ripe opportunities for business start-up activity.
HUD Provides Remaining $2.96B in CARES Act Funding for Homeless Populations
HUD Secretary Ben Carson announced the allocation of $2.96 billion in Emergency Solutions Grants (ESG) funding to support homeless Americans and individuals at risk of becoming homeless because of hardships such as job loss, wage reduction, or illness due to COVID-19.
IRS Extends Opportunity Zone Deadlines
In response to the COVID-19 pandemic, IRS Notice 2020-39 extends several deadlines and eases certain restrictions relating to the opportunity zone program and provides welcome relief for investors and qualified opportunity funds (QOFs).