U.S. Department of Commerce Invests $3.2 Million in CARES Act Recovery Assistance to Support Business Development and Job Creation Efforts in California
WASHINGTON – Today, U.S. Secretary of Commerce Gina M. Raimondo announced that the Department’s Economic Development Administration (EDA) is awarding $3.2 million in CARES Act Recovery Assistance grants to help the state of California prevent, prepare for, and respond to coronavirus.
“President Biden is committed to empowering communities to build back stronger after the economic disruptions of the pandemic,” said Secretary of Commerce Gina M. Raimondo. “These EDA investments will catalyze job growth across Northern California by supporting commercialization and technical assistance programs for startups and small businesses.”
“The Economic Development Administration plays an important role in helping communities across the nation implement strategies to mitigate economic hardships brought on by the coronavirus pandemic,” said Dennis Alvord, Acting Assistant Secretary of Commerce for Economic Development. “These EDA investments will grow businesses and create new jobs, building a stronger and more resilient economy in California.”
“As California’s economy comes roaring back from the pandemic, the state is committed to fostering an equitable, broad-based recovery that provides hard-hit businesses and communities the support they need to get back on their feet,” said Governor Gavin Newsom. “These investments will give a boost to innovative startups and Oakland small businesses in need, creating and saving jobs and helping to ensure the Golden State remains the best place to start and grow a business.”
“This grant will help our community recover from the devastating impacts incurred by the COVID-19 pandemic and accelerate the already flourishing innovation in the biotech and agricultural manufacturing industries throughout the I-80 corridor and Northern California Megaregion. I thank President Biden, Secretary Raimondo, and everyone who is working tirelessly to ensure every American community can build back better after the pandemic,” said Congressman John Garamendi (CA-03).
“Our economy has suffered a once in a hit due to the COVID-19 pandemic,” said Congresswoman Barbara Lee (CA-13). “As a strong supporter of EDA funding and its mission, I’m pleased to see this investment back in our community. It will be crucial to helping Californians recover, especially in low-income communities and communities of color. I am joined by members of my community in Oakland and the East Bay in thanking the Biden administration for investing in small businesses, strengthening our economy and building back bolder.”
The EDA investments announced today are:
- The Regents of the University of California will receive a $2.2 million EDA CARES Act Recovery Assistance grant to support the Verde Innovation Network for Entrepreneurship (VINE) at the University of California-Davis in developing a new commercialization center that will support the scaling of high-growth startup companies. The project, to be matched with $552,519 in local funds, is expected to create or retain more than 720 jobs and generate $436.6 million in private investment.
- The city of Oakland will receive a $1 million EDA CARES Act Recovery Assistance grant to provide culturally-sensitive and linguistic 1-on-1 business technical assistance to 1,100 small businesses in the low-income neighborhood commercial corridors in Oakland. The project, to be matched with $332,192 in local funds, is expected to create 1,150 jobs and save 2,750 jobs.
This project is funded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136 PDF), which provided EDA with $1.5 billion for economic 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 eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.