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.

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-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

-Federal Resources

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.

The U.S. Department of Commerce announced the opening of the EDA new Scaling Pandemic Resilience Through Innovation and Technology (SPRINT) Challenge, which will enable organizations across the country to address the economic, health, and safety risks caused by the coronavirus pandemic through entrepreneurship and innovation. The SPRINT Challenge is a $25 million national competition funded by the CARES Act.

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.

HUD announced over half a million dollars in additional funding to HUD Fair Housing Assistance Program (FHAP) agencies in 12 states to support activities related to COVID-19. These awards are part of $1.5 million in Partnership and Special Enforcement Effort funds provided through the CARES Act of 2020

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.

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 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.

Coronavirus Relief Fund FAQs Related to Reporting & Recordkeeping - Treasury Office of Inspector General Members only

The Department of the Treasury Office of Inspector General (OIG) is responsible for monitoring and oversight of the receipt, disbursement, and use of Coronavirus Relief Fund (CRF) payments. Treasury OIG was also assigned authority to recover funds in the event that it is determined a recipient of a CRF payment failed to comply with requirements of subsection 601(d) of the Social Security Act.

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 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.

View more Federal Resources

-State and Local Resources

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

Access to Capital | Disaster Recovery & Relief | COVID-19

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

Bond Finance | Disaster Recovery & Relief | COVID-19

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?

Access to Capital | Disaster Recovery & Relief | Economic Development | COVID-19

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

Community Development | Disaster Recovery & Relief | COVID-19

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.

Where to Prioritize Emergency Rental Assistance to Keep Renters in Their Homes

Disaster Recovery & Relief | Housing Finance | COVID-19

As states and localities allocate emergency rental assistance funds to help renters avoid losing their homes, local leaders must decide where to prioritize their resources. To help inform those decisions, the Urban Institute has developed the Emergency Rental Assistance Priority Index.

The COVID-19 Community Vulnerability Index (CCVI)

Disaster Recovery & Relief | Economic Development | Centers for Disease Control and Prevention (CDC) | U.S. Dept. of Health & Human Services (HHS)

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 Cities Members only

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

Access to Capital | Disaster Recovery & Relief | Economic Development | Incentives | Local Finance Program

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).

View More Disaster Recovery & Relief Resources

-Additional Resources

-Headlines

Senate Fails to Pass $500B COVID-19 Stimulus Package as Relief Talks Continue
USA Today | Oct. 21 | Disaster Recovery & Relief | Legislative | COVID-19

Self Storage and Investing in Opportunity Zones During COVID-19
Commercial Property Executive | Oct. 15 | Disaster Recovery & Relief | Opportunity Zones | COVID-19

View more Headlines

-Upcoming Events

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.

CDFA Virtual National Summit: Financing Our COVID Recovery
November 9-13, 2020
Daily: 1:00 PM - 5:00 PM (Eastern)
Register

CDFA // BNY Mellon Development Finance Webcast Series: Financing Resilient Infrastructure
Tuesday, November 17, 2020
1:00 PM Eastern

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we will analyze how to finance the built environment to mitigate disaster and protect human life.

Intro Food Systems Finance WebCourse
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.

View more Upcoming Events

-Webcasts

CDFA // BNY Mellon Development Finance Webcast Series: Bond Financing for Disaster Response

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we looked at how bonds act as a resilient economic driver by financing the critical facilities and infrastructure that stabilize local economies during and after crises.

CDFA // BNY Mellon Development Finance Webcast Series: Understanding The Municipal Liquidity Facility Members only

Bond Finance | Disaster Recovery & Relief | Webcasts | Federal Reserve | U.S. Dept. of Treasury

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, finance experts discussed the Municipal Liquidity Facility's requirements, market trends since the MLF's launch, and what can be done to make the MLF an attractive option for issuers.

CDFA // BNY Mellon Development Finance Webcast Series: Financing Small Business Recovery After COVID-19 Members only

Access to Capital | Disaster Recovery & Relief | Revolving Loan Funds (RLFs) | Webcasts

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, we discussed the impacts of COVID-19 on access to capital and how finance tools have evolved to meet the growing needs of small businesses as the nation works towards economic recovery.

CDFA - PFM Capital Markets Webinar Series: What Worries Your Municipal Advisor Members only

Bond Finance | Disaster Recovery & Relief | Housing Finance | Infrastructure Finance | Webcasts

What should issuers, underwriters, and advisors know about working with their team of professionals to complete a bond deal during times of crisis? This interview-style discussion featured a round-robin of advisors divulging the capital markets trends they’re following and offered some best practices on how to deal with them.

CDFA - ARI Rural Finance Webinar Series: Access to Captial and Community Facilities

Disaster Recovery & Relief | Rural Development | Webcasts

During the fourth installment of the CDFA-ARI Rural Finance Webinar Series, we discussed resources for community facilities and other accessible capital for rural community development.

View more Webcasts