Daily Business Report-April 2, 2020
Illustration by Anne Wernikoff for CalMatters. Elements via iStock
Political watchdog agency investigating
use of charities by state legislators
Following a CalMatters investigation, California’s political watchdog agency is rethinking the laws permitting elected officials to solicit donations to nonprofits controlled by them, their relatives or their staff, CalMatters’ Laurel Rosenhall reports. One Fair Political Practices Commissioner said she’s concerned about the potential for “self dealing” and politicians using charitable contributions to subsidize their lifestyles.
CalMatters previously found that an Alameda County assemblyman helped raise $588,000 for organizations that employed his wife by soliciting donations to nonprofits she worked for and to his own foundation that in turn loaned $25,000 to his wife’s employer. Experts say it was legal.
— CalMatters
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As unemployment surges,
beware of loan sharks and debt traps
CalMatters
As millions of Americans lose their jobs or face reduced hours because of the coronavirus pandemic, financial experts say loan sharks are looking for blood. Although the number of payday lenders in California has decreased over the past decade, the majority are located in ZIP codes with above-average poverty rates.
The Fresno Bee’s Manuela Tobias compiled a list of tips for how to get financial help without falling into a debt trap.
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Conrad Prebys Foundation makes
$1 million challenge grant to Scripps Health
The Conrad Prebys Foundation has made a $1 million challeng grant to Scripps Health to help front-line health care workers in the fight against COVID-19. The gift will be coupled with matching donations from the community.
Scripps said it has fully mobilized its resources in the fight against COVID-19, including providing a dedicated nurse call line and setting up triage tents outside emergency departments and urgent care centers where patients with fever and/or respiratory symptoms are evaluated. Thousands of masks, gowns and other crucial supplies are used daily to protect doctors, nurses and patients, which comes at a high cost to the organization.
“Conrad would be pleased to know that we are already seeing a tremendous response from our donors,” said Scripps Health Corporate Senior Vice President and Chief Development Officer John Engle. “The challenge match campaign just launched, and I have every confidence that with the help of our community, we will achieve our goal of $1 million in community matching donations.”
Philanthropist Conrad Prebys was a property developer and philanthropist who died in 2016.
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Aspen Neuroscience announces
$70 million Series A financing
San Diego-based Aspen Neuroscience, a private biotechnology company developing the first autologous neuron replacement therapy to treat Parkinson disease, announced the close of its Series A funding round of $70 million. OrbiMed led the investment round with participation from ARCH Venture Partners, Frazier Healthcare Partners, Domain Associates, Section 32, and Sam Altman.
Aspen’s lead product, ANPD001, is currently undergoing investigational new drug (IND)-enabling studies for the treatment of sporadic forms of Parkinson disease. Aspen’s second product, ANPD002, combines gene correction and autologous neuron therapy for the treatment of genetic forms of Parkinson disease.
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SBA taps Microsoft, Amazon to help
disburse $350 billion in small business loans
Govcon Wire
The Small Business Administration has partnered with Amazonand Microsoft to help SBA distribute approximately $350 billion worth of loans to small companies as part of the Paycheck Protection Program, CNN reported.
A source with knowledge of the matter described the collaboration as “unprecedented public-private partnership.”
The Paycheck Protection Program is part of the $2 trillion stimulus package President Trump signed into law Friday to mitigate the economic impact of the coronavirus pandemic. The loans to be doled out through the program seek to help small businesses keep their employees on payroll and pay rent and other utilities.
The office of inspector general at SBA has begun educating consumers, law enforcement officials and lenders about how to detect and prevent potential fraud schemes.
Treasury Secretary Steven Mnuchin said in an interview the loans to small businesses would be available as early as Friday.
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Alliance San Diego leading census effort
Wednesday was Census Day, the day by which every household in the country should have received an invitation to participate in the decennial census. With social distancing and stay-at-home orders across the state, Alliance San Diego staff is leading the effort to contact San Diegans in hard-to-count areas to remind them that now, more than ever, participating in the 2020 Decennial Census is vital to get the resources our communities need.
Census data is used to fund research and programs that provide essential information for our public health system and services for our communities. Census data also determines political representation in Sacramento and Washington, D.C., which will impact how our government responds to risks, like COVID 19.
Alliance San Diego is part of the Count Me 2020 Coalition, a group of over 100 organizations working to educate and mobilize residents in hard-to-count areas of our region.
San Diegans can complete the census questionnaire on the Census 2020 website by responding to a few simple questions. They can also respond by phone in 13 different languages.
“This public health crisis is a stark reminder of what’s at stake when it comes to counting everyone who lives in our region and determining the type of resources needed for everything from education and infrastructure, to public health and political representation,” said Christopher Rice Wilson, associate director of Alliance San Diego.
“We have shifted our outreach team to work remotely and we are committed to contacting residents in hard-to-count and vulnerable communities, especially during these uncertain times.”
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McClatchy puts coronavirus paywalls back up
Editor & Publisher
McClatchy will put its paywall back up around some coronavirus news as it aims to balance its duty keep people informed with its need to bolster subscriptions, executives tell Axios.
Why it matters: The company is trying to be strategic about how much they allow to be free. While it’s important that some information remains free, like breaking news that could impact the health and safety of their readers, they don’t want that free information to cannibalize a surge in subscription interest.
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McDonald’s and other brands making
‘social distancing’ logos
CNN Business
It’s not just people that are social distancing. Brands are doing it too.
McDonald’s, Coca-Cola, Audi and Volkswagen are just a few of the corporate conglomerates that are interpreting “social distancing” with logo redesigns.
The term has become popular recently because of the spread of the novel coronavirus. Social distancing means standing 6 feet apart from others in an effort to lower the risk of contracting the illness.
The messages and logos created to promote social distancing have pros and cons, according to two experts in the design field.
