Almost Daily Briefing, April 3, 2020
The Almost Daily Briefing
Published news articles from local, regional, and national media on topics of interest to the #LoveLafayette Community
This update was provided to the City of Lafayette by Townsend Public Affairs and includes Cal OES announcements. Read the latest coronavirus information and find resources for Lafayette residents and businesses on the City’s COVID-19 Webpage: http://bit.ly/LafayetteCoronavirusInfo.
- Small Business Assistance: Today the Governor Newsom highlighted new assistance that the State is offering small businesses, as well as federal efforts that were part of the stimulus measures signed into law in March. More information on the below programs can be found here: https://covid19.ca.gov/business-and-employers/.
- Sales Tax Bridge Loan: The State has announced the free deferral of sales/use tax, up to $50,000, for businesses with less than $5 million in taxable assets. The State is allowing qualified businesses to defer their payment of sales/use tax for up to one-year with no fines or penalties. Additionally, there will be no interest payments required for any deferred payments. The intent is for this funding, which businesses collect and remit to the State, to act as a bridge loan.
- California Small Business Loan Guarantee Program: This program is being started with $50 million in funding being provided to the IBank. This program is targeted at small businesses with 1-750 employees who do not qualify for federal funds. The loans would be eligible for businesses and non-profits, and the funds could be used for operating costs, such as rent and payroll. Businesses can apply directly with a private lender or through a participating Financial Development Corporation.
- Economic Injury Disaster Loan: This program was previously approved by Congress and is available through the US Small Business Administration. This program can provide qualifying businesses with a loan of up to $2 million. The loan can be paid back over 30 years at an interest rate of 3.75% (2.75% for non-profits). Applicants can receive an upfront advance of up to $10,000 while their application is being processed.
- Paycheck Protection Program: This program was approved through the CARES Act and begins accepting applications tomorrow (April 3) Congress has made $349 billion available, nationwide, for this program. The program is designed to provide a direct incentive for small businesses to keep their employees on payroll.
- This program can provide qualifying businesses with up to $10 million loan. The loan has a maturity of 2 years and an interest rate of 0.5%. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities (at least 75% of the forgiven amount must be used for payroll0. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines or if salaries and wages decrease.
Water Shutoffs: Today, Governor Newsom signed an Executive Order that will restrict water shutoffs to homes and small businesses while the state responds to the COVID-19 pandemic. Over 100 public and private water systems have already voluntarily suspended water shutoffs for non-payment due to COVID-19. The State Water Resources Control Board will issue best practices and guidelines on support for the state’s water systems. Under the Executive Order, water systems shall restore any residential service to occupied residences that has been discontinued for non-payment since March 4.
Unemployment: The US Department of Labor published updated data on unemployment claims nationwide. The number of initial claims continued to spike, jumping from a weekly total of 3.3 million to 6.6 million. State Unemployment: Governor Newsom indicated, that since March 12th, over 1.9 million Californians have filed for unemployment benefits.
To help handle the increased volume of those seeking benefits, the Employment Development Department has reorganized staffing in order to speed up the processing of eligibility and distribution of benefits. The State is making every effort to keep up with a 21-day turn around for those who apply.
Property Taxes: In response to a question from the media, Governor Newsom indicated that there are currently no plans, at the state level, to delay or relieve property owners of their property tax obligations. The Governor has been in communication with representatives for local governments and they have stressed the critical need for the funding they receive from property tax. Local governments have requested that the State not delay or suspend property tax payments, unless the State backfills the revenue to local governments.
Earth is moving less, thanks to coronavirus. Researchers say there is less observable seismic noise.
The Almost Daily Briefing (ADB) is an aggregation of links to news articles from local and regional newspapers, magazines, websites, and other news sources. Its purpose is to alert readers to current issues and affairs that may impact Lafayette. The ADB does not promote, favor, disfavor, support, reject, or endorse any position, candidate, campaign, or proposition, and nothing about the ADB, including the selection, presentation, arrangement, or content of the links presented should be construed as an advocacy position. Please note: At times, the ADB features articles from sites that limit access for nonsubscribers. If you have questions about the ADB, please contact the City of Lafayette's Communications Analyst, Jeff Heyman, at firstname.lastname@example.org. You can subscribe to the ADB and learn more about Lafayette’s publications and social media sites here.