Welcome to the 73rd issue of the California Coronavirus Weekly Recap newsletter.
In This Issue:
- The Economy & Your Finances: Fed Chair Powell believes COVID surge won’t impact economy
- The Market & Industry: Federal eviction ban expires, California ban continues through Sept.
- Around the State: California contends with fourth wave
- Health Check-Up: Delta as contagious as chicken pox
The Economy & Your Finances: Fed Chair Powell believes COVID surge won’t impact economyFederal Reserve Chair Jerome Powell said last week he believes the U.S. economy has “learned to handle” the coronavirus and won’t be severely impacted in the coming weeks as cases continue to rise. After contracting 19.2 percent during the recession brought on by COVID-19, the U.S. economy is now larger than it was before the pandemic — although its growth rate may have peaked. Economic activity is expected to pick up in September when schools reopen and workers are expected to return to their offices.
U.S. jobless claims fell by 24,000 last week to 400,000, a new pandemic low. Meanwhile, California jobless claims rose by 10,900 to 67,400. Using comparable numbers for both the U.S. and the state that weren’t adjusted for seasonal volatility, the 67,400 jobless filings in California equated to 19.6% of all the unemployment claims that were filed in the United States last week. Californians receiving PUA or unemployment benefits are required to look for work to maintain their eligibility. REALTORS® that are self-employed or independent contractors can include activities to resume or rebuild their business or to obtain independent contracting work. EDD has encouraged claimants to keep a record of their work search effort, and to make the records available to EDD upon request. C.A.R.’s PUA certification guide has been updated to reflect the changes to Certification Question 3 PUA benefits will end on September 4, 2021.
The U.S. Small Business Administration (SBA) launched a new portal where borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less may apply for forgiveness. This portal is only available if a lender opts in to the program, so borrowers should check with their lender to determine if they will be able to use the SBA portal to obtain loan forgiveness. The platform begins accepting applications today.
Sources: Bloomberg, The Mercury News, Reuters, CNBC, Small Business Administration, REALTOR® Magazine
The Market & Industry: Federal eviction ban expires, California ban continues through Sept.
The federal eviction moratorium expired last Saturday. The day prior, House lawmakers attempted, but failed, to pass a bill to extend the moratorium even for a few months.
California, however, has its eviction moratorium in place through September 30 — the third extended deadline. Newsom has said a fourth extension is unlikely.
California has agreed to pay off 100 percent of eligible tenants’ unpaid rent from April 2020 through September 30, 2021, so long as tenants earn 80 percent or less of the area median income. The money will come from the federal government. People who are not eligible to get the money can still qualify for the eviction ban if they pay at least 25% of what they owe by Sept. 30.
The National Association of REALTORS® has created a list of resources for housing providers seeking rental assistance. It includes NAR’s FAQ for housing providers, NAR’s background/talking points on the end of the eviction moratorium, resources from the federal government (including the Consumer Financial Protection Bureau toolkit), and resources from other housing industry groups, such as the National Multifamily Housing Coalition, which includes tools for communicating with residents about rental assistance.
Sources: Los Angeles Times, KCRA, NAR
Around the State: California contends with fourth wave
California is battling a fourth wave of the coronavirus. Last week, California health officials urged all fully vaccinated Californians to wear masks indoors to slow the spread. More local areas are imposing indoor mask mandates, including Sacramento County last Thursday. As of 11:38 a.m., cases in California number 3,968,827 and hospitalizations numbered 4,662. The statewide average for ICU bed availability was 1,040.
Newsom told reporters last week that the state’s “projections are sobering,” and that hospitalizations will continue to rise if something doesn’t change. California is currently averaging eight times the rate of new coronavirus cases from four weeks ago. On Friday, new California cases jumped 39 percent from the day prior, the biggest one-day jump of the year. While the state has seen a small rise in vaccinations in response to the surge, the pace of vaccinations has fallen off dramatically since mid-April.
Across the country, unvaccinated people infected with the Delta variant are filling up hospitals. More than 90 percent of people hospitalized with COVID-19 are unvaccinated. And Dr. Anthony Fauci has warned things are going to “get worse” before they get better.
Sources: CAL Matters, Los Angeles Times, County of Sacramento, Deadline, CNN, ABC News
Health Check-Up: Delta as contagious as chicken pox
The CDC warned House lawmakers that the Delta variant spreading across the country is as contagious as chicken pox, has a longer transmission window than the original strain of COVID-19, and may make older people sicker even if they’re vaccinated. The report also indicated that fully vaccinated people infected with the Delta variant can spread the virus to others, and that the variant is causing more breakthrough infections in vaccinated people than expected.
The FDA authorized a preventative monoclonal antibody treatment for those at considerable risk of developing severe symptoms from COVID-19 who have been exposed. This treatment would provide the estimated 3 percent of Americans who are immunocompromised with extra protection, as they may still be vulnerable to COVID even after vaccination.
Sources: CNBC, NBC News, The San Francisco Chronicle