CDFA COVID-19 Recovery & Relief Update - September 1, 2020

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Spotlight

The COVID-19 Community Vulnerability Index (CCVI)

Every community in the US will be affected by COVID-19, but the impacts will not be the same in each. This index - developed by Surgo Foundation and featured as a CDC resource - identifies which communities may need the most support as coronavirus takes hold. Mapped to US census tract, county, and state levels, the CCVI helps inform COVID-19 planning and mitigation at a granular level.

Features

Minority Entrepreneurs at a Tipping Point as Black-Owned Banks Dwindle in the U.S.

Black Americans have been hit disproportionately hard by the COVID-19 pandemic, and the white-led financial institutions that could theoretically offer economic support may simply not be enough. The coronavirus pandemic has exacerbated a crisis for Americans already facing poor economic and health outcomes and highlights the lack of financial services institutions run by Black founders and executives.

Is This the End for America's Mom and Pop Stores?

Now economists fear that the economic shock of coronavirus will prove ruinous for tens of thousands of mom-and-pops, with dire consequences for not only the businesses affected but also the independent, entrepreneurial streak that is hard-wired into the nation's psyche.

COVID-19 Loan Programs Reached Businesses Across New Mexico

With a broader selection of state and federal economic assistance now open to small business owners, the New Mexico Economic Development Department (EDD) has closed its COVID-19 Business Loan Guarantee (CBLG) program after assisting with $1.77 million in lending to 47 businesses. A second relief measure that granted almost $6 million in no-interest loans from the state LEDA fund is also no longer taking applications.

Rural Hospitals Are Sinking Under COVID-19 Financial Pressures

As COVID-19 continues to spread, an increasing number of rural communities in the U.S. find themselves without their hospital or on the brink of losing already cash-strapped facilities. Eighteen rural hospitals closed last year and the first three months of 2020 were "really big months," says Mark Holmes, director of the Cecil G. Sheps Center for Health Services Research at UNC-Chapel Hill.

Michigan's COVID-19 Fiscal Wounds Less Severe Than Previously Forecast

Michigan trimmed about $3 billion off its projected COVID-19-driven deficits between fiscal 2020 and 2022 after federal relief helped soften the economic blow. The state's revised revenue projections are down by $5.106 billion for fiscal 2020, 2021, and 2022 from its formal January estimates. The good news is that's down from a collective $8.37 billion revenue loss projected in May.

Sacramento, CA School District Installs 10 Broadband Towers for Students

The Patterson Joint Unified School District in Sacramento is partnering with Motorola to install 10 broadband towers across the district's eight campuses, with the more rural schools both receiving two. The district already had money set aside for 1-2 new towers, so CARES Act funding is enabling them to install all 10 in the next few months.

Local and Regional Farmer and Market Support Act Introduced in Congress

Congresswoman Alma Adams (D-NC-12) introduced the Act to provide meaningful support to farmers, ranchers, and critical local and regional food systems businesses. The Local Farmer Act would provide direct payments to local and regional food producers based on their historic revenue, and help their local markets as they both cope with the economic impacts of the coronavirus pandemic.

Coronavirus Pandemic Refugees and the Future of American Cities

History informs us that some people, especially the wealthy, flee cities in response to pandemics and other major catastrophes. In past pandemics and crises, refugees have typically returned, remaining attracted to the social and cultural dynamism cities offer. However, the circumstances surrounding the COVID-19 pandemic raise questions about the future attractiveness of large cities as places to live and do business.

Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery

How can economic development organizations modify their incentive programs to help struggling small businesses? To assist in sorting through the options, Smart Incentives has published Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery, prepared for the State Economic Development Executives Network with their partners at the Center for Regional Economic Competitiveness (CREC).

Upcoming Events

CDFA Brownfields Financing Webinar Series: Brownfields and Opportunity Zones
Septermber 10, 2020 - 1:00 PM Eastern

Join CDFA as we closely examine the current regulations of Opportunity Zones, how communities are preparing themselves for Opportunity Zone investments , and how this tool can fit into the captial stack of a brownfield site in your community.

CDFA // BNY Mellon Development Finance Webcast Series: Understanding The Municipal Liquidity Facility
Tuesday, September 15, 2020 - 1:00 PM Eastern

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, finance experts will discuss the Municipal Liquidity Facility's requirements, market trends since the MLF's launch, and what can be done to make the MLF an attractive option for issuers.

CDFA-Bricker PACE Webinar Series: PACE Program Capitalization
Tuesday, September 22, 2020 - 11:00 AM - 1:00 PM Eastern

PACE program financing can be provided through private third parties, public bonds, or a combination of both, and within those options, there are many creative approaches being implemented across the nation. In 2017, The Kresge Foundation made a $3 million program-related investment into the St. Paul Port Authority's "Trillion BTU" and "MinnPACE" loan programs. This was a first of its kind PRI to help the community on-board PACE. This webinar will explore this and other creative methods that communities can utilize to capitalize their PACE program.

State & Local Programs

Federal Financing Programs

U.S. Dept. of Commerce (DOC)

EDA CARES Act Recovery Assistance

EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau's flexible Economic Adjustment Assistance (EAA) program, provides a wide-range of financial assistance...

U.S. Dept. of Education (DoED)

Education Stabilization Fund Discretionary Grants

Congress set aside 1% of the $30.75 billion allotted to the Education Stabilization Fund through the CARES Act for grants to States with the highest coronavirus burden. The Department will make these...

U.S. Small Business Administration (SBA)

Economic Injury Disaster Loan (EIDL)

These loans of up to $2 million help meet financial obligations and operating expenses. Loan advances up to $10,000 are also offered.

Highlights from the Online Resource Database

This webinar focused on how the Department of Transportation's programs can finance surface, seaport, transit, and rail projects to make infrastructure more resilient.

Forward-Looking Statements in Municipal Disclosures
Bond Finance | Disaster Recovery & Relief | Municipal Securities Rulemaking Board (MSRB)

Due to recent events related to COVID-19, the SEC released a public statement on May 4, 2020 encouraging municipal issuers and issuers to consider voluntary disclosures of forward-looking information regarding the potential future impacts of COVID-19 on current financial and operating conditions and future results of operation.

Transportation Infrastructure Investment as Economic Stimulus: Lessons from the American Recovery and Reinvestment Act of 2009
Bond Finance | Disaster Recovery & Relief | Economic Development | Infrastructure Finance | Legislative

Congress is considering federal funding for infrastructure to revive an economy damaged by COVID-19. Congress previously provided infrastructure funding for economic stimulus in the American Recovery and Reinvestment Act of 2009. This Congressional Research Service report examines approximately a decade or more of program data and observations that can be made with regard to the economic effects of ARRA funding for transportation infrastructure.

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