Congress Extends Small-Business Loan Program
The House agreed to extend for five weeks a popular pandemic relief loan program for small businesses. The move to extend the Paycheck Protection Program through Aug. 8, which allows small businesses to secure low-interest loans to help maintain their payrolls, came as Republicans and Democrats remained divided over how much additional federal assistance to provide to businesses and individuals affected by the coronavirus and the economic hardship it has caused.
Fed's $600B Main Street Lending Program Sees Lukewarm Interest
The government is offering to lend up to $600 billion to help small and midsize businesses weather the coronavirus-induced recession, but so far interest has been sparse. Under the Main Street Lending Program, commercial banks lend to companies and then sell all but a small portion of each loan to the Federal Reserve. The Treasury Department stands ready to cover the Fed's losses if companies fail to repay. More than two months after the program was announced, however, some bankers say they are still trying to decide whether to take part.
House Sends Massive Infrastructure Bill to the Senate
The bill, which passed in the House, 233-188, is massive in its scope with $1.5 trillion for priorities such as schools, hospitals, housing, broadband, drinking water, stormwater, the energy grid, and vehicle safety. The Moving Forward Act includes several bond financing provisions, makes the NMTC permanent, gives LIHTC a major boost, delays the phasedown of the ITC, and increases the Historic Tax Credit, among many other provisions.
IRS Notice Provides COVID-19 LIHTC Relief
The Internal Revenue Service today released an advance copy of proposed regulations concerning low-income housing tax credit (LIHTC) compliance issues, returning to a previous standard of required inspection of the lesser of the applicable Real Estate Assessment Center (REAC) number of 20 percent of the low-income units in the development.
USDA Food Box Program 25% Short of Its Forecasted Delivery
In mid-April, the Department of Agriculture (USDA) announced a novel plan to connect struggling farmers directly with families dealing with virus-related loss of income: The aptly named Farmers to Families Food Box program would pay distributors to purchase produce, dairy, and meat; package the food into boxes; and deliver those boxes to churches, schools, and food banks. As of July 1, the USDA is 10 million boxes and 25 percent short of its forecasted delivery.
Minority Business Development Agency Awards $10M in Federal Funding from CARES Act
The U.S. Department of Commerce, Minority Business Development Agency (MBDA) announced the deployment of $10 million in CARES Act funding to the network of MBDA Business Centers and national minority chambers of commerce. The grants will be used for education, training, and advising small and minority business enterprises in their recovery from the effects of the COVID-19 crisis.
HUD Extends Due Date for All Financial Statements Until Sept. 30
The U.S. Department of Housing and Urban Development (HUD) today announced that the Office of Housing approved an extension for all financial statements until Sept. 30. The extension applies to all submissions, both audited and unaudited. Any submission with a due date before Sept. 30 is affected.
Clean Energy Advocates Say Industry Can Lead Economic Recovery
Clean energy advocate groups in Wisconsin are encouraging direct economic stimulus funding along with policies from state and federal government to advance clean energy development and create jobs across numerous sectors of the economy, including construction, manufacturing, transportation, finance, and agriculture.
Is There Help on the Horizon with the Food Supply Protection Act?
The Food Supply Protection Act (FSPA – S. 3840) was introduced last month by Senate Agriculture Committee Ranking Member Senator Debbie Stabenow (D-MI). The FSPA has three main sections to address food bank infrastructure, partnerships to purchase and provide farm products excluded from the current CFAP 'Food Box' program, and processing capacity of small and mid-sized food processors.
Philadelphia, PA Businesses in High-Poverty Areas Awarded Less in Relief Funds
The City of Philadelphia distributed millions of dollars in aid for small businesses, but commercial corridors in high-poverty neighborhoods received less funding than their wealthier counterparts. Poorer corridors had more businesses awarded grants through the program, and the report notes that high-poverty neighborhoods "should be targets of future rounds of investment."