COVID-19 Resource Center
Development finance has always been at the forefront of recovering from natural disasters and economic challenges. The CDFA COVID-19 Resource Center is a collection of financing programs and resources to address disaster relief and recovery.
As the situation surrounding COVID-19 evolves, small businesses and communities across the country will very quickly face liquidity challenges, job losses, and project stagnation. Credit will be tightening and small businesses will struggle to make payroll while communities will be forced to scale back or halt infrastructure development. Moreover, communities are facing difficulties financing critical infrastructure such as health facilities, broadband networks, and testing centers to address local COVID-19 demands.
Development finance agencies are uniquely positioned to solve these challenges through pragmatic solutions and adjustments to existing initiatives. CDFA developed this COVID-19 Resource Center to serve as a central hub of everything the development finance world is doing to mitigate the impacts of COVID-19.
Subscribe to CDFA's COVID-19 Recovery & Relief Update
newsletter for regular updates on relief and recovery financing initiatives.
-CDFA's COVID-19 Comprehensive Recovery Strategy
Based on the input of our 500+ members, CDFA has developed a set of policy proposals that would allow state and local governments, through development finance agencies, to be immediate problem solvers that can help alleviate the extreme economic challenges facing small businesses and communities to put America securely on the path to recovery.
Read the Comprehensive Recovery Strategy
Unlock Capital for Small Business Immediately
To support small businesses, Congress and the Administration should:
- Reauthorize & Fund the State Small Business Credit Initiative
- Temporarily Remove Match Requirements from Certain Federal Programs
- Amend Existing Revolving Loan Funds
Pass Immediate Bond Financing Provisions
To support communities, Congress and the Administration should:
- Pass the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA)
- Create a Permanent Category of Disaster Recovery Bonds
Allocate Federal Funding Accordingly
- CDFI Fund - $1 billion to address critical community lending needs
- EDA - $500 million to seed new, flexible revolving loan funds and to provide direct technical assistance to communities hit hard by the crisis
- HUD - $2 billion to address urban disaster recovery due to small business losses
- USDA - $2 billion to address rural development stagnation and the loss of small businesses
-Weekly Development Finance COVID-19 Briefings
CDFA hosted weekly briefings about development finance COVID-19 news and resources. These one-hour phone calls featured legislative updates, news from our members, state and local financing strategies, and lessons learned from previous development finance responses to disasters.
CDFA's Weekly Development Finance COVID-19 Briefings were held every Friday at 1:00 PM (Eastern) through May 15, 2020:
-State Response Map
Click a state to view COVID-19 financing programs and related headlines.
-COVID-19 Recovery & Relief Resources
Main Street Lending Program Adjusted to Better Target Smaller Businesses
| Nov. 12 |
Faced with growing but modest uptake in program loans, the Federal Reserve recently adjusted the terms of the Main Street Lending Program to better target support to smaller businesses. Established in the wake of the CARES Act, the program is intended to help otherwise healthy small and medium-sized businesses and nonprofits weather the financial strains of the pandemic.
Local Food Systems Response to COVID
Nov. 9 |
The COVID-19 pandemic and associated public health and social distancing mandates caused unprecedented shifts and disruptions for Local and Regional Food Systems (LRFS). USDA Agricultural Marketing Service (AMS) along with the cooperating research team led by the University of Kentucky seek to enrich existing efforts within LRFS communities of practice who provide essential support to our nation’s local food producers.
IRS Extends Period for Telephonic Public Hearings for Private Activity Bonds to Sept. 2021
Holland & Knight LLP
| Nov. 9 |
Because of the continuing COVID-19 crisis, the IRS has issued Revenue Procedure 2020-49 (the Revised Guidance), which extends the period during which remote telephonic hearings qualify as "public hearings" required for private activity bonds to Sept. 30, 2021. Originally, such telephonic hearings could not be held past Dec. 31, 2020.
USDA Announces Fourth Round of the Farmers to Families Food Box Program
| Oct. 23 |
The U.S. Department of Agriculture (USDA) announced it has authorized $500 million for a fourth round of purchases for the USDA Farmers to Families Food Box Program. USDA is issuing solicitations for the fourth round to existing Basic Ordering Agreement (BOA) holders and expects to award contracts by Oct. 30 for deliveries of food boxes from Nov. 1 through Dec. 31, 2020.
SBA, Treasury Announce ‘Simpler’ PPP Forgiveness Process
Land Line Magazine
| Oct. 19 |
The U.S. Small Business Administration and the U.S. Treasury Department are trying to simplify the forgiveness application process for Paycheck Protection Program loans of $50,000 or less. Announced this past week, the changes are aimed at streamlining the PPP forgiveness process to provide financial and administrative relief to America's smallest businesses.
FCC, HHS, and USDA Team Up for Rural Health Initiative
USDA, HHS, FCC
| Oct. 1 |
The FCC, HHS, and USDA announced that they have signed a Memorandum of Understanding to work together on the Rural Telehealth Initiative, a joint effort to collaborate and share information to address health disparities, resolve service provider challenges, and promote broadband services and technology to rural areas in America.
U.S. to Start Forgiving PPP Loans After Borrowers Complained
The Wall Street Journal
View more Federal Resources
| Sep. 29 |
The SBA will begin forgiving loans granted to small-business owners under the Paycheck Protection Program, following banks' and borrowers' complaints that the process had been bogged down. Business advocates, banks, and lawmakers have raised concerns that the process of turning the loans into grants is too complex and slow under the $670 billion federal program.
-State and Local Resources
Washington Allocates $135M to Help Businesses, Workers Hit Hard by New COVID Restrictions
Governor Jay Inslee announced a $135 million federal relief package that will provide financial support for small businesses, workers and families who have been hit hard by Washington's new novel coronavirus restrictions. The package includes $70 million in business support grants, which will be distributed by the Department of Commerce. It also includes $30 million in business loans, $20 million for rental assistance, which will also help landlords, and finally $15 million for energy assistance for low-income families.
Assessment of County Needs in Economic Recovery from COVID-19
County leaders have witnessed firsthand the impacts of the COVID-19 pandemic on their neighbors and constituents and are well-informed on needs arising in their local communities. While county governments are uniquely positioned to support recovery efforts, counties, themselves, need support to meet those needs and secure the physical and economic well-being of their residents moving forward. This report outlines what county leaders have identified as primary concerns, priority actions and resources needed to create equitable long-term economic recovery.
Big Ideas for Small Business
This report provides a five-step roadmap towards a more inclusive, dynamic, and productive small-business sector. The report breaks down the five steps into ten major policy recommendations with detailed policy proposals. It was authored by the Drexel University Nowak Metro Finance Lab and Yale's Institution for Social and Policy Studies.
EIG Introduces the Distressed Communities Index
The Economic Innovation Group released the Distressed Communities Index (DCI), a timely research project that maps community well-being across the country down to the zip code scale. The report is accompanied by a digital mapping interactive that allows users to explore all of the data included in the DCI across zip codes, counties, and congressional districts.
Business Credit Programs in the Pandemic Era
The Federal Reserve's Main Street Lending Program for small and medium-sized businesses should take more risks to meet the unique challenges posed by the COVID-19 pandemic, suggests a paper discussed at the Brookings Papers on Economic Activity (BPEA) conference.
Coronavirus Rating Action Tracker for Structured Finance and Covered Bonds
Fitch's Coronavirus Rating Action Tracker For Structured Finance and Covered Bonds monitors all public structured finance and covered bonds rating actions taken after 1 March. The Data tab includes line-by-line data for every transaction / program that was reviewed since the start of the pandemic.
Update on the Economic Well-Being of U.S. Households: July 2020 Results
The findings in this report primarily reflect the financial circumstances of families in the United States in late 2019, prior to the onset of COVID-19 and the associated financial disruptions. This survey contains updated information from follow-up surveys conducted during the COVID-19 pandemic.
How Much is COVID-19 Hurting State and Local Revenues?
As in other economic downturns, the pandemic has reduced state and local revenues, but this time is different. This Q&A examines the fiscal impact that COVID-19 has had on state and local governments and is drawn from the Brookings Institute's paper, "Fiscal Effects of COVID-19."
Using CARES Act Funding for Economic Development Purposes
View More Disaster Recovery & Relief Resources
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.
Intro Food Systems Finance WebCourse
View more Upcoming Events
December 9-10, 2020
12:00 - 5:00 PM Eastern
The Intro Food Systems Finance WebCourse examines the development finance programs that sustain a local food system and how investments in that system can drive economic development on a broader scale. Topics covered include federal, state, and local sources of capital, stakeholders involved in the financing process, and case studies that showcase the variety of financing programs.