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
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.
U.S. to Start Forgiving PPP Loans After Borrowers Complained
The Wall Street Journal
| 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.
504 Loan Program Assists Nation's Small Businesses with Record $1.28B Funding in September
| Sep. 18 |
The Small Business Administration's 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.
Federal Reserve Loans Expand to Assist Nonprofits
Enid News & Eagle
| Sep. 16 |
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.
HUD Awards Nearly $2B in CARES Act Relief Funds, Focusing on Communities With Higher Risk of Eviction
U.S. Department of Housing & Urban Development
| Sep. 11 |
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.
Rural Development Invests $46M in Rural Community Facilities in 16 States
USDA Rural Development
| Aug. 24 |
The United States Department of Agriculture (USDA) is investing $46 million to improve critical community facilities to benefit 363,000 rural residents in 16 states. The investments can be used to build or upgrade schools, libraries, clinics, and public safety facilities.
HUD Issues Guidance for Coronavirus Relief Funds
U.S. Department of Housing and Urban Development
View more Federal Resources
| Aug. 20 |
HUD provided guidance and additional flexibility to states and units of local government who are utilizing their existing federal disaster recovery funds to support low- and moderate-income persons and vulnerable populations for disasters occurring in 2015, 2016, 2017, 2018, and 2019 during the coronavirus outbreak. The August 17 Federal Register notice grants extensions and clarifies submission deadlines for CDBG-DR grantees.
-State and Local Resources
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.
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
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.
The COVID-19 Community Vulnerability Index (CCVI)
Every community in the US will be affected by COVID-19, but the impacts will not be the same in each. This index - developed by Surgo Foundation and featured as a CDC resource - identifies which communities may need the most support as coronavirus takes hold. Mapped to US census tract, county, and state levels, the CCVI helps inform COVID-19 planning and mitigation at a granular level.
Coronavirus Pandemic Refugees and the Future of American CitiesMembers only Login
History informs us that some people, especially the wealthy, flee cities in response to pandemics and other major catastrophes. In past pandemics and crises, refugees have typically returned, remaining attracted to the social and cultural dynamism cities offer. However, the circumstances surrounding the COVID-19 pandemic raise questions about the future attractiveness of large cities as places to live and do business.
Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery
How can economic development organizations modify their incentive programs to help struggling small businesses? To assist in sorting through the options, Smart Incentives has published Guidance on Adjusting Discretionary Incentive Programs to Support Small Business Recovery, prepared for the State Economic Development Executives Network with their partners at the Center for Regional Economic Competitiveness (CREC).
Baker Tilly Develops Public Sector COVID-19 Recovery Assessment Tool
View More Disaster Recovery & Relief Resources
The Baker Tilly Public Sector COVID-19 Recovery Assessment tool can help state and local government, utility and school district leaders assess the current impact of the coronavirus crisis on your entity and community, understand your level of preparedness for recovery in a possibly permanently altered environment and identify potential risks your entity may need to mitigate.
Reframe, Build, Plan: Restoring America's Local Food Systems
Thursday, October 29, 2020
1:00 PM Eastern
CDFA recently released the final publication of the CDFA Food Finance White Paper Series, Advancing Local Food Systems Through Development Finance. Join us for an overview of this publication as we review CDFA's framework for expanding traditional financing and attracting capital to local food systems through the Reframe, Build, Plan approach.
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 study examples that showcase the variety of financing programs.
COVID-19 Weekly Briefing - State of the Bond Issuers
View more Webcasts
During the May 15, 2020 Weekly COVID-19 Development Finance Briefing, three top bond issuers discussed how issuers are faring during the COVID-19 crisis, the state of issuers' portfolios, issuers' concern about default risk, and how issuing authorities are managing long-term economic concerns related to state and local government budgets as well as their own budgets.