EDA CARES Act Recovery Assistance

Applications are now being accepted for EDA CARES Act Recovery Assistance.
Please see the Notice of Funding Opportunity and apply today!
For up-to-date info on COVID-19, visit www.coronavirus.gov.

OVERVIEW

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law by President Donald J. Trump on March 27, 2020, provides the Economic Development Administration (EDA) with $1.5 billion for economic development assistance programs to help communities prevent, prepare for, and respond to coronavirus.

EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to communities and regions as they respond to and recover from the impacts of the pandemic.

On May 7, 2020, Secretary Wilbur Ross made EDA’s CARES Act Recovery Assistance funding available with the announcement that EDA had published an Addendum to its FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity. EDA intends to deploy its CARES Act funding as quickly, effectively, and efficiently as possible, and in a manner that meets communities needs.

RESOURCES

* As stated in the CARES Act Recovery Assistance Addendum to the PWEAA NOFO, EDA may invite existing grantees, such as Economic Development Districts and Tribes currently in receipt of Partnership Planning awards, operators of existing EDA funded Revolving Loan Funds, and EDA-funded University Centers, to apply for supplemental awards. These standard Scopes of Work and Specific Award Conditions are for use with these supplemental awards only. Existing grantees who are eligible to apply for these awards will be contacted individually for instructions on how to apply.

State Grant Programs
(Referenced on VEDA’s Public Policy Webinar)

State Grant Programs

On April 22, the General Assembly approved the governor’s plan to amend provisions of the Small Business Jobs Fund (which had been slated for dissolution) to allow the approximately $750,000 in remaining monies in that fund to be used for a grant program.  The eligibility provisions were laid out in the governor’s amendments and are as follows:

  • A small business must demonstrate financial stress from the emergency;
  • be established before March 12, 2020;
  • be in good standing;
  • have annual gross revenues of no more than $1.5 million in its most recent fiscal year;
  •  have no more than 25 employees, all of whom are employed within the Commonwealth; and
  •  otherwise meet the requirements of a “small business” as that term is defined in subsection A of § 2.2-1616 of the Code of Virginia – the criteria of which are:
    • (i) a corporation, pass-through entity, or other entity that (i) has annual gross revenues of no more than $5 million in its most recent fiscal year;
    • (ii) has its principal office or facility in the Commonwealth;
    • (iii) is engaged in business primarily in or does substantially all of its production in the Commonwealth;
    • (iv) has not obtained during its existence more than $5 million in aggregate gross cash proceeds from the issuance of its equity or debt investments, not including commercial loans from national or state-chartered banking or savings and loan institutions; and
    • (v) has no more than 50 employees who are employed within the Commonwealth;

Recipients may then receive a grant of up to $5000 for the following eligible expenses:

  • payroll support, including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits during those periods of leave;
  • employee salaries;
  • mortgage payments;
  • rent (including rent under a lease agreement);
  • utilities; and
  • principal and interest payments for any business loans from national or state-chartered banking, savings and loan institutions, or credit unions, that were incurred before or during the emergency.

Applications have yet to be developed, along with program rules, however, we will provide further updates in the future as this information becomes available.

The General Assembly has also approved the governor’s proposed creation of a COVID-19 Relief Fund supported by taxes on electronic skills games which had been banned by the 2020 General Assembly.  This fund could total $150 million and would be available for affordable housing, healthcare facilities, and small businesses. No application material or criteria for this potential fund are known at this time.  Additional information will be provided if the program is approved and once criteria are established.

Virginia’s SBDC Network: Business Recovery Webpage

Greetings – as Virginia businesses and communities look forward to safely reopen, the Virginia SBDC network, and your local SBDC, have developed the Business Recovery webpage to help owners carefully plan for and execute their businesses’  new strategy.

These detailed guidelines cover a broad range of critical considerations.  While business owners can use them by themselves, they were designed to ideally be used in collaboration with an expert business consultant in your local SBDC.

Reopening a business under current circumstances requires owners to make a careful analysis of the current situation, their capabilities, and goals.  They must recognize how the market and customer has changed- the same applies to businesses that were able to continue operations.  Additionally, businesses will need to calculate the new operating costs they’ll incur with additional safety measures. It might also necessitate owners to re-imagine their business concept.

The Virginia SBDC’s consultations have a solid track record of helping business owners through such considerations.  SBDCs also have contacts in the local area that can help businesses make opportune connections.

Please share the Business Recovery resources with your businesses as your communities prepare to safely reopen in the coming weeks and months.

Thank you,
Jody Keenan, Managing Director, Mason Enterprise Center, State Director, Virginia SBDC Network

Governor Northam Announces Phase One Guidelines to Slowly Ease Public Health Restrictions
Phase One will begin no sooner than Friday, May 15

Governor Ralph Northam signed Executive Order Sixty-One and presented a detailed framework for the first phase of the “Forward Virginia” plan to safely and gradually ease public health restrictions while containing the spread of COVID-19. The Phase One guidelines will be implemented when the data meets the public health criteria outlined by the Commonwealth. The new executive order modifies public health guidance in Executive Order Fifty-Three and Executive Order Fifty-Five and establishes guidelines for Phase One.

The Governor’s phased approach is grounded in science and data and includes mitigation strategies to slow the spread of the COVID-19 virus through enhanced safety practices. The plan allows localities to consider delaying implementation of Phase One guidelines based on local conditions.

“I am proud of the millions of Virginians who have stayed home and helped to flatten the curve, but our work is not done,” said Governor Northam. “These guidelines represent one step forward in a gradual process, establishing the necessary modifications to business operations to minimize the risk of COVID-19 exposure for employees and customers. When we move into this first phase, it will be important for Virginians to act cautiously-especially our most vulnerable populations, the elderly, and those with underlying medical conditions.”

Under Phase One, the Commonwealth will move to a Safer at Home strategy, which continues the ban on social gatherings of more than 10 people and maintains recommendations for social distancing, teleworking, and wearing face coverings. All businesses should make modifications to maintain six feet of physical distancing, increase cleaning and sanitization of high contact surfaces, and provide enhanced workplace safety measures.

Retail establishments will be allowed to operate at 50 percent occupancy, restaurant and beverage establishments may offer outdoor dining at 50 percent occupancy, personal grooming services may begin operating with one patron per service provider, and fitness centers may offer outdoor exercise services. Campgrounds may also begin taking reservations for short-term stays.

Places of worship have had a 10-person limit and have been allowed to hold drive-in services allowed. In Phase One, drive-in services may continue, and services may be held inside at 50 percent capacity. Specific guidelines for religious services can be found here.

Many of the restrictions put in place by Executive Order Fifty-Three will remain in place in Phase One. Entertainment and public amusement venues will remain closed and beaches will continue to be open only for exercise and fishing. Childcare centers remain open for children of working families. Overnight summer camps will remain closed in Phase One.

Useful Links

Forward Virginia: Phase One

Phase One Guidelines for Specific Business Sectors

Graphs & Slides From Governor’s Presentation

Full Text of Executive Order Sixty-One and Order of Public Health Emergency Three

VEDA Resources and Request for Feedback

VEDA to Compile List of Local, Regional, State, and Federal Resources for COVID-19 Relief and Recovery

This week, VEDA staff will be working on a compilation of COVID-19 Relief and Recovery Resources available to Virginia localities and their businesses for distribution. We think we have a good handle on the state and federal resources, but would like to hear from localities and regions for specific relief and recovery programs that have been initiated. Please send any information about these types of programs to kathy@associationbuilders.com by Friday, May 15th.

VEDA/VEDP impactED Session Recordings and Resources Available on the VEDA Website

Check out VEDA’s website for recordings and information for the weekly VEDA/VEDP impactED Sessions. CLICK HERE to download!