Development Finance Review Weekly - July 30, 2020

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Spotlight

SBA Administrators to Speak on PPP, EIDL, 7(a), 504 Programs on Friday's CDFA Webinar

This Friday at 1 pm Eastern, CDFA will host top administrators from the SBA to discuss the current state of access to capital with special focus on the PPP, EIDL, 7(a), and 504 programs.

Small businesses are critical economic development drivers in urban centers, suburban enclaves, and rural cities, yet COVID-19 has left many struggling to identify and obtain the necessary capital to sustain the workforce and pay bills. The Small Business Administration is charged with administering several major financing programs aimed directly at supporting small businesses, such as the Paycheck Protection Program, the Economic Injury Disaster Loan Program, and SBA Disaster Loans.

During this webinar, administrators from the SBA will provide an analysis of its COVID-19 relief programs and discuss what we can learn about providing small businesses with access to capital.

>>> Click Here to Sign Up!

Feature

Depleted Tax Coffers Could Cause Shift in Incentive Policy

In this new environment of reduced tax revenues, impacts on incentives must be considered. While the country battles the coronavirus, state and local governments will be squeezed financially - just like so many businesses and households. Economic development organizations will have to respond by carefully managing - and better justifying - their incentive and financing programs.

Congress Considers COVID Recovery Bond Program

If COVID recovery bonds become a reality, the program would provide another way for public entities to secure funding that does not come solely from public coffers. The current discussions focus on a federal COVID recovery bonding program that would be launched with approximately $25 billion. A small number of states have already initiated programs such as this on a smaller scale.

Stimulus Negotiations: Republicans Release Opening Offer Without Payroll Tax Cut

Senate Majority Leader Mitch McConnell has unveiled the GOP's initial $1 trillion coronavirus relief proposal. Key points include more stimulus checks, no payroll tax cut, another round of PPP, extends unemployment benefits at a lower level, $16B for testing, enhanced employee retention tax credit, $105B in education funds, and more.

Supporting Microbusinesses in Underserved Communities During the COVID-19 Recovery

In Detroit, collaborations between public, private, nonprofit, and philanthropic leaders quickly listened to business owners, innovating and implementing strategies to ensure the most vulnerable businesses could address their specific needs that resulted from social distancing orders. The strategies outlined below could have potential applications for many underserved communities in cities across the United States.

COVID's Impact on Opportunity Zone Funds May Surprise You

When the pandemic broke out, nearly the entire U.S. economy came to a grinding halt. This meant most OZ fund projects and developments were delayed to some extent. But as the economy slowly starts to reopen, many projects that were underway are moving forward as planned with additional interest and demand for the injection of money into the funds.

Nongambling Tribal Business in Michigan Generates Over $288M

Nongaming business entities from nine federally recognized Michigan tribes presented Gov. Gretchen Whitmer's office and the Michigan Economic Development Corporation with an economic impact report demonstrating 38 nongaming business entities, owned and managed by tribes in Michigan, generated a statewide economic impact of $288,756,091 in 2019.

SBA Announces New Community Advantage Recovery Loan Program

The Small Business Administration (SBA) recently announced a new COVID-19 recovery program, the Community Advantage (CA) Recovery Loan Program, that allows eligible CA Lenders to provide technical and financial assistance to assist small businesses located in underserved areas, as defined by SBA. Loans can be approved through September 27, 2020, and must be fully disbursed no later than October 1, 2020.

Upcoming Events

Upcoming Webcasts

CDFA Federal Financing Webinar Series: Federal Recovery Resources from the SBA
July 31, 2020 - 1:00 - 3:00 PM Eastern

During this webinar, administrators from the SBA will provide a year-end analysis of its COVID-19 relief programs and discuss what we can learn about providing small businesses with access to capital.

CDFA-PFM Capital Markets Webinar Series: Today's Bond Regulatory Environment
August 20, 2020 - 2:00 - 3:30 PM Eastern

During this installment of the CDFA-PFM Capital Markets Webinar Series, experts will analyze how recent regulatory actions will impact how banks buy bonds and how deals are priced.

This Week's Headlines

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New Additions to the Online Resource Database

How Opportunity Zones Can Help Accelerate Post-COVID Economic Resurgence: A Milken Institute Working Paper
Disaster Recovery & Relief | Economic Development | Opportunity Zones | Redevelopment | Resiliency

In a post-COVID world, it will be imperative to invest in our underserved communities' capacity to serve themselves, and in their resilience. Opportunity Zones are one tool to drive this effort. The Milken Institute has developed this state and local official training guide to help community leaders engage more effectively with the private sector and philanthropic partners to create new, lasting models for building local prosperity and community wealth.

>>> SEARCH ONLINE RESOURCE DATABASE

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Partner Spotlight

informANALYTICS by Center for Governmental Research

The Center for Governmental Research (CGR) is a nonprofit organized under section 501(c)(3) of the Internal Revenue Code. CGR brings expertise to issues spanning economics and public finance, government management, health and human services and...

CDFA Bookstore

Tax Increment Finance Best Practices Reference Guide 2nd Edition

The Tax Increment Finance Best Practices Reference Guide 2nd Edition addresses what TIF is, why it should be used, and how best to apply the TIF tool. This guide highlights both TIF and special assessment projects across the country and how they can be applied to address common economic development issues.

New Members

Arctaris Impact Fund - Chestnut Hill, MA

Ark-Tex Council of Governments - Texarkana, TX

Cameron Economic Development Corporation - Cameron, TX

DcTaxHub LLC - Washington, DC

Lee-Russell Council of Governments - Opelika, AL

Watertown Development Company - Watertown, SD

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 about CDFA, visit www.cdfa.net or e-mail info@cdfa.net.

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