Fed's Main Street Pandemic Lifeline Sees Low Utilization
The Federal Reserve's Main Street Lending Program isn't living up to expectations as some of the nation's biggest lenders have demanded such crushing terms that discussions have stalled from the get-go, while other banks have decided not to participate at all. That's meant the take-up for the $600 billion program is just 0.2%, threatening to undercut the economic recovery and efforts to protect jobs.
Poll of U.S. Mayors Shows Interest in P3, Infrastructure Amid Pandemic Budget Pressures
A new survey found that 69% of U.S. mayors report the need to invest in infrastructure as a top and immediate priority to recover from the pandemic, yet 98% expect their city's operating budget will decline over the next 12-18 months. Another common theme was the desire for more public-private partnerships and capital investments, with corporations playing a larger role helping to rebuild and revitalize the economy.
COVID Means Extra Challenges for Minority-Owned Businesses
Over 50% of small businesses with employees, face immediate risks to survival due to the impacts of COVID-19. Within the small business category are minority- and women-owned business enterprises. Of small businesses in immediate-risk industries (food service, retail, and accommodation), 39% are female-owned, or equally female- and male-owned, compared to 29% of business in industries at near-term risk and 36% at long-term risk.
Federal Reserve Loans Expand to Assist Nonprofits
The Federal Reserve's Main Street Lending Program is accepting loan applications to assist nonprofits experiencing cash flow problems due to the COVID-19 pandemic. The Federal Reserve Bank of Boston announced on Sept. 4 the Main Street Lending Program has expanded from offering loans to businesses, which it has been doing since July 6, to offer similar loans to nonprofit entities.
Sens. Wyden, Merkley, Feinstein, Murray, Harris Introduce Disaster Tax Relief Bill
Senate Finance Committee Ranking Member Ron Wyden, D-Ore., Senator Jeff Merkley, D-Ore., Senator Dianne Feinstein, D-Calif., Senator Patty Murray, D-Wa., and Senator Kamala Harris, D-Calif., introduced legislation to provide tax relief to individuals, businesses, and states affected by catastrophic wildfires and other presidentially-declared disasters.
Pennsylvania Governor Awards $10M to Fund Access to Fresh Food, COVID-19 Mitigation Efforts in Low-Income Communities
The Fresh Food Financing Initiative (FFFI) was funded at $10M through the federal CARES Act and opened in July to for-profit, nonprofit, or cooperative entities including grocery stores, corner stores, convenience stores, neighborhood markets, bodegas, food hubs, mobile markets, farmers markets, on-farm markets, urban farms, and food aggregation centers with a direct connection to direct-to-consumer retail outlets.
USDA to Provide Additional Direct Assistance to Farmers Impacted by the Coronavirus
President Donald J. Trump and U.S. Secretary of Agriculture Sonny Perdue announced up to an additional $14 billion for agricultural producers who continue to face market disruptions and associated costs because of COVID-19. The USDA will use funds being made available from the Commodity Credit Corporation Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture, and many additional commodities.
504 Loan Program Assists Nation's Small Businesses with Record $1.28B Funding in September
The Small Business Administration (SBA) 504 Loan Program completed its largest monthly funding of loans in the program's 34-year history, including 1,462 loans for $1,284,274,000 – more than double the previous record set in September 2012. Historic levels of 504 loan closings and fundings were driven by record low interest rates and debt relief provided by the CARES Act.