Six Recommendations for Implementing the Next Stimulus Package

When the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed last spring, a substantial amount of federal dollars were unlocked for states to address the economic impacts of COVID-19. Yet, state and local governments faced significant challenges to rapidly distribute these funds and track how the money was spent.

U.S. Digital Response (USDR) partnered with dozens of states, counties, and cities to support them in the use and tracking of their CARES Act grants. As we start the new year, more rounds of stimulus grants are on their way. Here are the lessons we learned from our work this past year to help federal, state, and local governments better assist their residents, particularly small businesses and low-income communities, and ensure the money gets where it’s needed most. We’ve also included a section at the end listing free resources that USDR offers for governments across the country.

1. Focus on the whole customer journey and provide clear, proactive communication.

During the first round of stimulus funds through the CARES Act, many small businesses seeking assistance reported that they weren’t receiving the information they needed when they needed it. Siloed agencies offered individual programs, and applying for assistance could mean reaching out to multiple government agencies with different requirements for loan acceptance.

What works:

• Implement a hotline that serves as a trusted, one-stop-shop resource to help people navigate the process.
• Publish the latest policies in plain language, define what they mean, and outline how they impact individuals or businesses.
• Utilize a self-service screening tool that helps business owners access benefits and services and determine who is eligible under the new rules.
• Prepare for questions in advance and provide clear federal guidance that states can share with their residents.

2. Create a plan to handle the volume of requests.

The increased demand related to the CARES Act resulted in an unprecedented surge in the volume of applications, appointments, call center requests, and website traffic. As a result, many critical systems were unable to keep up when the pandemic hit.

What works:

• Learn about best practices for mitigating call center volume.
• Move on-premise databases to the cloud to improve quick scalability.
• Engage systems architects to evaluate and load test websites, servers, databases, and applications.
• Establish processes to easily update public messaging on websites, social media, and other communications as new information becomes available.

3. Implement machine-readable benefits applications and leverage structured administrative data to determine eligibility.

To apply for benefits, applicants need to upload documents that verify their identity and eligibility, such as a pay stub or a lease agreement. Anytime a piece of paper or a PDF needs review, it’s considered ‘unstructured data’ and a human must look at it. The user experience for state workers and applicants is largely dictated and restricted by legacy backend systems.

What works:

• Provide eligibility information in a way that is customer-centered, cohesive, and easy to understand with a web-based eligibility tool.
• Move critical processes — like uploading documents — online via web forms to eliminate the need for manual data entry and scraping of PDFs and images.
• Leverage administrative data, wherever possible, to simplify the burden on applicants and state officials.

4. Prioritize equity in distribution of funds.

At the state level, many programs were implemented on a first come, first served model that introduced significant challenges, especially for small businesses that are non-English speakers and do not have reliable access to the internet. Some businesses, including minority-owned and cash-based, were not set up to access the types of loans that were being provided.

What works:

• Revamp and relaunch the Economic Injury Disaster Advance (EIDL Advance) program, which gives small businesses grants not loans, enabling non-employer firms to apply.
• Launch an online loan and grant eligibility tool to help small business owners understand if they are eligible.
• Implement an online loan and grant calculator to help small businesses find the right numbers to fill in and to generate an estimated loan or grant amount.

5. Reduce complex manual data entry, data sharing, and reporting.

We heard from states that major challenges for reporting and tracking stimulus funds stemmed from having to rely on old or non-existent technology. Governments that don’t have access to a statewide grants system found the process of coordinating large reporting efforts across multiple state agencies to be difficult and time consuming, often requiring complex queries and extensive manual data analysis.

What works:

• Set clear federal reporting requirements and guidance on use of funds as they are provided.
• Implement a state-wide, standardized budgeting tool to streamline reporting and ensure data integrity.
• Use an enhanced funding opportunity tool that links to the management of opportunities the state is interested in and qualifies for.
• Enable the interoperability of reporting tools, such as leveraging USAspending with extra reporting/query functionality.

6. Repurpose existing tools to quickly increase capacity.

Now that we are on our second round of stimulus funding with the Consolidated Appropriations Act, governments should not be shy about using what worked last time so they can immediately make the best use of their funding. Here are three tools that could help, along with links to free USDR versions that can be adopted and customized for state and local governments within a matter of days.

What works:

• Set up a grant tracking and reporting tool from day one. USDR volunteers built this tool, used by two states, based on prior federal Recovery Act and DATA Act reporting requirements.
• Centralize information to help small business owners understand their eligibility for federal stimulus funds. Here is USDR’s customizable online tool, developed in partnership with four states.
• Open accessible lines of communication with your community early. USDR volunteers supported one local government by building a texting tool to share guidelines and grant information with local small businesses.

Next week marks one year since the first case of COVID-19 was reported in the United States and, today, small businesses across the country continue to fight to keep their doors open. Stimulus funding is still an essential lifeline for small and minority-owned businesses. Now is the time for all levels of government to tap into volunteer tech support to adopt innovative processes — from websites to forms to databases — to support businesses when they need it most. Access our full CARES Act retrospective report here.

Our team of experienced volunteers is here to work alongside you — fast and free — to provide real solutions to your most challenging problems. If you are a government seeking assistance with stimulus fund implementation, please connect with our team by filling out this brief intake form.