This report from Drexel University's Nowak Metro Finance Lab provides a guide to federal funding in the American Rescue Plan. The authors place a special emphasis on formula funds received by local anchors, competitive grants, and funds distributed to public authorities that city leaders can leverage to boost their recovery.

An unexpected decrease in revenue is one of the most challenging budget situations that state governments can face, as recent experiences grappling with the impact of the pandemic show. Policymakers are also feeling pressure to get their economies back on track. If economic development incentives are part of a state's recovery strategy, leaders should reduce fiscal risk, make informed policy decisions, and revisit programs for relevancy.

U.S. Secretary of Commerce Gina Raimondo announced on April 6 that a total of $29 million would be awarded to 44 organizations as part of the Economic Development Administration's (EDA) Scaling Pandemic Resilience Through Innovation and Technology (SPRINT) Challenge.

With the Small Business Administration's (SBA) announcement in a Senate hearing that it plans on rolling out the Restaurant Revitalization Grant Program, under the American Rescue Plan Act of 2021, as soon as early April, potential applicants should begin preparing for the application process.

A survey of minority entrepreneurs in the Upper Midwest by the Minneapolis Federal Reserve Bank at the start of this year found minority businesses were in greater financial danger than businesses in general. Sixty percent of owners reported fourth-quarter revenue was lower in 2020 than for the same quarter of 2019. A majority said the decline was greater than 25 percent.

Travel's economic footprint in the U.S. declined by 42% last year. The U.S. Travel Association is pressing Congress to pass the bipartisan Hospitality and Commerce Job Recovery Act, which would provide a temporary business tax credit to revitalize business meetings and conferences, a temporarily restored entertainment business expense deduction, an individual tax credit to stimulate nonbusiness travel, and tax relief for restaurants and food and beverage companies.

A year after the Paycheck Protection Program started, studies show how its design hurt Black- and other minority-owned businesses. Congress created the Paycheck Protection Program in March 2020 as an emergency stopgap for what lawmakers expected to be a few months of sharp economic disruption.

Socially disadvantaged farmers, including African American, Hispanic, Native American, and Asian American farmers, will receive aid in the form of debt relief, grants, training, and education as a part of the American Rescue Plan Act of 2021. This aid will provide significant relief to disadvantaged farmers who have faced economic hardships and a disproportionate adverse impact from the COVID-19 pandemic.

The U.S. Department of Housing and Urban Development (HUD) granted an extension of the deadline for certain financial reports for owners of multifamily housing projects and residential care facilities due to the COVID-19 pandemic.

CDFA // BNY Mellon Development Finance Webcast Series: Social Impact Investing Credit Ratings for CDFIs
Tuesday, April 20, 2021 - 2:00 PM - 3:00 PM Eastern

CDFA SSBCI Briefing
Friday, April 23, 2021 - 1:00 PM - 2:00 PM Eastern

This report from Drexel University's Nowak Metro Finance Lab provides a guide to federal funding in the American Rescue Plan (ARP). The authors place a special emphasis on formula funds received by local anchors, competitive grants, and funds distributed to public authorities that city leadership can leverage to boost their recovery. They clarify which entities are responsible for applying for grant funds, when funding expires, and what role city and county leadership can play even when they will not be the primary applicant for funds.

This table includes all the federal-to-local funding streams in the American Rescue Plan that reach cities and their residents. It does not include appropriations to Tribal Governments or Agency appropriations focused on program operations at the federal level with no further sub-allocation. It is a dynamic summary to be paired with the Federal Investment Guide produced by Accelerator for America, Drexel University, and the US Conference of Mayors.

The Urban Institute hosted this discussion about how small businesses are faring one year after the start of widespread economic shutdowns due to the pandemic. The webinar explored the disconnect between the fall in business activity and revenues, and generally positive small business credit and debt patterns. It also discussed what roles governments and philanthropic entities should play, including what work is needed to ensure businesses historically excluded from access to capital can have a prosperous future.

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