CDFA COVID-19 Recovery & Relief Update - September 15, 2020

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Features

HUD Awards Nearly $2B in CARES Act Relief Funds, Focusing on Communities With Higher Risk of Eviction

HUD Secretary Carson announced the allocation of the remaining $1.988 billion in CARES Act funding for the Community Development Block Grant (CDBG) program. The allocation focuses funds towards places with households facing a higher risk of eviction. To date, HUD has provided nearly $5 billion in CDBG funding nationwide to help communities combat the coronavirus and alleviate economic hardship.

Using CARES Act Funding for Economic Development Purposes

This article from CDFA's partners at Frost Brown Todd examines second-order effects that cost jobs and closed stores can be attacked with CARES Act funding. Eligible expenditures of CARES Act funds can include expenditures incurred to respond to "second-order effects" of the emergency.

Report Alleges More Than $1B In Bad PPP Loans As Feds Make Another Arrest

The PPP, which was part of the CARES Act, consists of billions of dollars in forgivable loans guaranteed by the Small Business Administration (SBA) intended to keep workers on the payroll. But mistakes have been made. A recent report by the House Select Subcommittee on the Coronavirus Crisis advised that over $1 billion in COVID relief went to companies in violation of the program's rules.

First-Ever Ohio USDA CARES Act Loan Guarantee Bolsters Rural Business During Pandemic

U.S. Department of Agriculture Ohio Rural Development State Director David L. Hall announced the agency is awarding its first-ever Business & Industry Loan Guarantee using targeted CARES Act funds through USDA's Business-Cooperative Services program.

Is Covid-19 Putting Municipal Bonds in Jeopardy?

Municipal bonds have long been considered some of the most reliable fixed income options with a low default rate. Enter Covid-19 and a once untouchable space could now be in jeopardy with defaults. According to the WSJ report, the number of municipal bond "defaults have reached their highest rate since 2011, the aftermath of the last recession, according to Municipal Market Analytics data."

SBA Officials Discuss ‘Growing Pains,' Inequities With PPP Loans

U.S. Small Business Administration officials visiting Michigan this week say the federal agency has undergone a major transformation during the COVID-19 pandemic while recognizing inequities in a key relief program for small businesses.

Transportation Groups Warn Congress of Billions in Canceled Projects

Transportation groups warn billions of dollars worth of future infrastructure projects will be canceled if Congress doesn't act swiftly to extend current surface transportation funding. In a letter to congressional leaders published this week, groups urged lawmakers to extend the Fixing America's Surface Transportation Act, which will expire Sept. 30, by one year.

Congress Faces Sept. 30 Deadline to Decide on State and Local Aid

The post-Labor Day return of Congress to Washington leaves lawmakers just over three weeks to agree on a stopgap to avoid a government shutdown and whatever new emergency aid might be provided to address the COVID-19 pandemic. The deadline for acting is the Sept. 30 end of the federal fiscal year.

Upcoming Events

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.

CDFA Food Systems Finance Webinar Series: Financing Food Systems Entrepreneurs
Tuesday, September 29, 2020 - 2:00 PM Eastern

During this installment of the CDFA Food Systems Finance Webinar Series, development finance professionals from around the country will describe their strategies for supporting local entrepreneurs in moving their business from idea to execution.

State & Local Programs

Federal Financing Programs

U.S. Dept. of Commerce (DOC)

Public Works and Economic Adjustment Assistance Programs

The Public Works and Economic Adjustment Assistance Program supports the construction or rehabilitation of essential public infrastructure and facilities needed to generate or retain private sector...

U.S. Dept. of Treasury

Primary Dealer Credit Facility

This loan facility provides credit to primary dealers in exchange for a broad range of collateral for term funding with maturities up to 90 days.

U.S. Small Business Administration (SBA)

SBA Disaster Assistance Loans

SBA offers low-interest long-term loans for physical and economic damage caused by declared disasters, including COVID-19.

The Council of Development Finance Agencies is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private, and non-profit entities alike. For more information visit CDFA.net or email info@cdfa.net

Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net