COVID-19 Response: Resources and Updates

Crises are not equalizers. People of color are likely to suffer the deepest economic impacts from the COVID-19 pandemic. The housing crisis of the Great Depression shows us how the greatest wealth losses occurred in Latino and African American households. We can expect the same during this crisis and must target our solutions and resources accordingly.

We are calling for a comprehensive response to COVID-19 to ensure America’s working families are able to withstand the economic shock that is just beginning and threatens to be long lasting. Read our most recent email in response to the proposed CARES Act.

CRC Calls On Governor Newsom To Take Action

On behalf of our 300 community based member organizations, we at the California Reinvestment Coalition (CRC) write to urge you to consider the following to protect the state’s most vulnerable, immigrants and communities of color from economic ruin brought on by the necessary lockdown in response to the spread of novel coronavirus, COVID-19. In a state that has experienced sudden devastation due to natural disasters such as fires and earthquakes, we recommend the following as both immediate stop gap measures to assist the hardest hit low wage workers and their families in this public health crisis, and as a way to ensure that in future climate and natural disasters working families are prepared to withstand economic impacts.

Sign On To Our Letter Here

Download Our Letter to the Governor Here

A Comprehensive Proposal to Save California’s Small Businesses

In order to confront the challenges faced by the almost 5 million small businesses in California and the economic devastation that can result from COVID-19, a bold comprehensive plan is needed by California’s elected leaders. Most small businesses in CA did not have well established banking relationships to get in the queue for relief, or enough professional staff to quickly complete the complex applications. This means that many of the state’s smallest businesses and those owned by people of color were left out of accessing relief. Small businesses need the full backing of the State of California if they are to survive this crisis.

Download and read CRC’s Comprehensive Proposal to Save California’s Small Businesses

Support for AB 2501 If Amended

We strongly support the intent of AB 2501 – to keep homeowners and tenants in their homes, and to provide relief to consumers who will otherwise have to choose between meeting loan repayment obligations and providing basic necessities to their families. The California Reinvestment Coalition (CRC) and the undersigned California based community organizations respectfully register our position on AB 2501 as SUPPORT IF AMENDED to include additional protections that will ensure we do not repeat the mistakes of the last crisis.

Download and read CRC’s letter to the capitol here.

Emergency Interest Rate Cap on Small Dollar Lending

Even during the best economic times, high-cost payday and installment lenders prey upon the financially vulnerable and trap them in triple-digit interest debt, leaving them far worse off than when they started. During periods of sustained crisis, this harm will be far greater if not reined in. For consumers experiencing income instability, high-cost debt they cannot afford to repay will only deepen their economic hardship.

Download & read our proposal to Governor Newsom on an Emergency Interest Rate Cap on Small Dollar Lending in the time of COVID-19

CA Dream Alliance

“This pandemic has only amplified our already unacceptable, destructive legacy of structural racism and inequality. The death toll — disproportionately people of color — has exposed the inevitable consequences of unequal access to affordable health care and the social determinants of health. It has laid bare the consequences of decades of inattention to inequality in housing, our environment, quality childcare and education.”

Download & read the full proposal here.

We Need To Hear From You

We are hearing from you in calls and emails about how your communities and clients are experiencing the change in the economy brought on by the pandemic. Yet, we know that there is more we need to hear. To that end, we designed a short survey that will collect key information about what you are seeing.  Kindly take 10 minutes to respond and share your experience. Your time responding to the survey allows us to move in the right direction with our advocacy efforts.

Bail Out the People Plan

CRC is calling for a comprehensive response to COVID19 to ensure America’s working families are able to withstand the economic shock that is just beginning and threatens to be long lasting.

A comprehensive and commensurate response to COVID19 will require that the nation’s wealthiest, largest institutions, those that have profited off the backs of working families, sacrifice the most during this time of greatest need.

Wells Fargo and JP Morgan Chase announced COVID19 relief that amounts to less than half their CEO pay and .00185% of their net assets respectively. So far, other banks have not made any commitments at all. If we are truly in this together, then banks are a part of the solution. They can do better and must do so immediately.

CRC’s demands for COVID19 for both government actors and the nation’s banking system. We are in this together.

Click on the images below to download our demands.

Protecting Californians from Financial Harm

Right now, financial predators and scammers are already taking advantage of the coronavirus crisis to target seniors, people who are fearful or cash strapped, and even people who are trying to be helpful.

We have developed a helpful infographic to alert community members on how they can protect themselves and loved ones.

Please share widely through your social networks by clicking on the images below to download in English or Spanish.

Avoid Coronavirus Scams

Evite Estafas Financieras

Additional Resources

Many organizations and governments have responded with resources and services to help individuals, small businesses and institutions cope with these challenges.

In The News

High-powered Bay Area group aims to outdo DC in coronavirus help for small business

Up to 90% of minority and women owners shut out of Paycheck Protection Program, experts fear

Early lessons learned from the U.S. Small Business Administration’s first round of lending from its Payroll Protection Program

Bailout money bypasses hard-hit New York, California for North Dakota, Nebraska

Ranking Member Brown, Chairwoman Waters Call on Administration to Stabilize the Housing Market During the Coronavirus pandemic

Supporting Small Businesses in a Time of COVID-19

Tax change in coronavirus package overwhelmingly benefits millionaires, congressional body finds

Opinion: Coronavirus is going to create the mother of all housing crises if we don’t bail out renters soon

Civil Rights and Consumer Groups Condemn Regulatory Guidance that Could Allow Banks to Make Predatory Payday Loans

Committee Democrats Call on Regulators to Suspend CRA and Other Rulemakings Unrelated to COVID-19

Western Center on Law & Poverty, Analysis of Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act

Essential Workers and COVID-19

White Paper: Immediate Actions For CFPB To Address COVID-19 Crisis

Small Nonprofits Struggle to Get Payroll Loans in New Federal Program

Disability Rights Center, Western Center on Law and Poverty and California Rural Legal Aid Foundation

Roundup of San Francisco Actions to Alleviate the Burden of Government Fines, Fees, and Collections During the COVID-19 Health Crisis

LA Times Editorial: Hey, Gov. Newsom, give California renters a real eviction moratorium

Black Americans Face Alarming Rates of Coronavirus Infection in Some States

Early Data Shows African Americans Have Contracted and Died of Coronavirus at an Alarming Rate

What are Banks Doing to Address the Impacts of COVID-19 on LMI Communities?

Nonprofits Seek Dedicated COVID Funding Stream

Join CRC

We will be following up in the weeks ahead with a rapid response strategy that identifies policy recommendations and actions to help protect low-income families and communities of color from financial harm.

To stay informed, sign up for our email list at the bottom of this page.

Anyone in your network who should be involved in this fight more directly can sign up to be a CRC member.

Your financial support helps CRC create a more just and equitable economy for Californians.
Please make a tax-deductible donation here.