Last week, President Trump signed into law a new bill that effectively relaxes Paycheck Protection Program loan requirements for many small businesses—the Paycheck Protection Forgiveness Act.
The law allows businesses a bit more leeway concerning where the money coming from the loans, part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, are spent, as well as a few other key points. Click here to read the entire article.
It hasn’t been an easy ride for those applying for or administering Paycheck Protection Program loans since the program went into effect on April 15. A lightning-fast rollout, differing interpretations of the rules, a steady stream of updates, warnings to recipients about audits and penalties, and negative press about public companies that received money while small business applications were held up in lender logjams frustrated many potential borrowers to the point that some withdrew their applications or returned the money. Click here to read the entire article.
On May 15, the Small Business Administration (SBA) released the long-awaited Payroll Protection Program Forgiveness Application. Under the Payroll Protection Program (PPP) entrepreneurs may apply to have up to 100 percent of their loan forgiven.
However, the SBA has failed to give clear guidance on the details of loan forgiveness, and this has caused entrepreneurs to question what they need to do to prepare for PPP loan forgiveness. The new application provides clarity on a few points. Click here to read the entire article.
So you received your funds from the Paycheck Protection Program, now what? The next step is to make sure you spend the funds in a way that maximizes the forgiveness of the loan. That will take some planning on the front end and monitoring of regulatory guidance during the next eight weeks. Click here to read the entire article.
Democrats have released another sprawling stimulus package, known as the Health and Economic Recovery Omnibus Emergency Solutions or HEROES Act. The legislation includes $875 billion for cash for state and local governments and Democratic leaders say is the centerpiece of the fifth coronavirus relief package. The package also includes $20 billion each for tribal nations and for U.S. territories and provisions to support multi-employer pensions.
"We can all agree that we must open our economy as quickly as we can but we must do so based on science and data," Pelosi said. "The key to opening the door is testing, tracing, treatment and social distancing."
The legislation also includes a slew of liberal priorities left out of previous bills, including $75 billion for mortgage relief and $100 billion in assistance for renters, $25 billion for the U.S. Postal Service and $3.6 billion to shore up elections. Click here to read the entire article.
The novel coronavirus (COVID-19) has had a major impact on organizations and operations across all industries—construction is certainly no exception. As construction executives grapple with the unprecedented impact COVID-19 will ultimately have on their businesses, a great deal of uncertainty remains. Many question marks still exist around the ultimate scope of the pandemic and what recovery will look like in the construction sector and the economy at large.
From a risk management perspective, these uncertainties make planning for the future particularly challenging. Yet the recent Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, offers a glimpse at the future in terms of what relief will be available and opportunities for new projects in a post-coronavirus world. The $2 trillion act is the largest relief package in U.S. history, and the third stimulus effort dedicated to combatting the economic impact of COVID-19. Click here to read the entire article.
Trump administration clarifies that paycheck protection loan program applies to all small construction firms
New guidance from the Treasury Department appears to allow any U.S. firms with 500 or fewer employees to qualify for the Small Business Administration's Paycheck Protection Program regardless of revenue, according to the Associated General Contractors of America. The initiative was created as part of the $2 trillion Coronavirus rescue bill enacted late last month.
President Donald Trump's administration released the new guidance yesterday after the AGC raised concerns that many small construction firms appeared to be excluded from the program. While Congress had earlier declared that the program be open to all businesses with 500 or fewer employees, the administration's “interim final rule” issued on April 2 stated that businesses must have 500 or fewer employees and fall below the agency’s small business size standards in order to qualify. The AGC claims the rule would have excluded many construction firms that have fewer than 500 employees but earn more than the SBA rules allow. Click here to read the entire article.
Construction contractors all over the world are struggling with the economic effects of work stoppages resulting from the Coronavirus pandemic. To help mitigate the crisis in the US, government has expanded unemployment benefits and has made special loans available to small businesses. Click here to read the entire article.