Report to Mayor and City Council
Tuesday, April 07, 2020
Discussion
SUBJECT:
Title
CONSIDER PROVIDING DIRECTION TO CITY STAFF REGARDING THE CITY'S OPTIONS FOR SECURING FUNDING SOURCES FOR LOCAL SMALL BUSINESSES AND NON-PROFITS INCLUDING CHURCHES (CITY COUNCIL)
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I. SUMMARY
This item is being presented at the request of Councilwoman Lula Davis-Holmes.
The novel coronavirus currently designated COVID-19 was first detected in Wuhan City, Hubei Province in China in December 2019. Since then, on January 30, 2020, the World Health Organization declared COVID-19 a public health emergency of international concern. On January 31, 2020, The United States Health and Human Services Secretary declared this global outbreak a public health emergency for the United States. The Centers for Disease Control and Prevention (CDC) announced on February 25, 2020 that community spread of COVID-19 was likely to occur in the United States.
The State of California proclaimed a State of Emergency on March 4, 2020, and Los Angeles County declared a Local Health Emergency as well that same day. On March 12, 2020, Governor Newsom issued Executive Order N-25-20, declaring that state and local public health officials may, as they deem necessary in the interest of public health, issue guidance limiting or recommending limitations upon attendance at public assemblies, conferences, or other mass events, which could cause the cancellation of such gatherings through no fault or responsibility of the parties involved, thereby constituting a force majeure. On March 13, 2020, President Trump Declared a National State of Emergency.
On March 15, 2020, the California Department of Public Health (CDPH) reported that, to date, California had almost 500 confirmed cases of COVID-19, 11 of which have resulted in death. CDPH also reported that approximately 11,100 Californians who returned to the United States after travel were self-monitoring. On March 16, 2020, the World Health Organization reported that, to date, there were more than 180,000 confirmed cases of COVID-19, over 7,000 of which resulted in death, across 148 countries.
Due to the rapid spread of the disease and lack of a vaccine, the City declared a local state of emergency on March 17, 2020. Under Government Code Section 8630, the City Council can proclaim the existence of a local emergency.
II. RECOMMENDATION
Recommendation
DISCUSS and PROVIDE direction to City staff regarding the City’s options for securing funding sources for small businesses, non-profits and churches, including procuring consulting services.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
As part of the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, $350 billion in new federal assistance has been appropriated to assist the business community through the pandemic and assist their employees through the crisis. In addition, at the statewide level, Governor Newsom has ordered a number of actions to be taken to provide assistance to employees, and also to provide some regulatory relief to businesses struggling to continue operating and maintaining regulatory compliance through the shutdown period. A high-level summary of both the state and federal programs is included in the PowerPoint (Exhibit No. 1). Additional useful information is contained in The Small Business Owner’s Guide to the CARES Act, published by the SBA (Exhibit No. 2), as well as the Coronavirus Emergency Loans Small Business Guide and Checklist published by the United States Chamber of Commerce (Exhibit No. 3).
In addition, the Council has asked about assistance to non-profits including churches. Non-profits are covered under some of the SBA programs, and are eligible to apply for some of the loan programs designed to continue payroll. In addition, Assembly Member Gipson has sent a letter to Governor Newsom (Exhibit No. 4) making the following request, among others:
“While there is a clear order to halt evictions from residential properties, commercial tenants are still in limbo. We are urging you to have a clear order and enforce a statewide eviction moratorium on commercial properties that are occupied by small businesses and nonprofits similar to the intent of SB 939. This will ensure that small businesses and nonprofits will have a chance to reopen and not be forced to shut their doors permanently.”
The City Manager will assign staff and procure consulting services as needed to work closely with the Carson Chamber of Commerce, the local Small Business Development Center, the SBA, and other resources to connect local small businesses and non-profits to these valuable resources.
V. FISCAL IMPACT
None.
VI. EXHIBITS
1. Exhibit 1
2. Exhibit 2
3. Exhibit 3
4. Exhibit 4
Prepared by: John Raymond, Assistant City Manager