The Associated General Contractors of America today announced that the Trump administration released new guidance that now allows firms with 500 or fewer employees to qualify for the new Paycheck Protection Program Loans. Association officials noted that the administration released the new guidance after the association raised concerns over the weekend that many firms that employ 500 or fewer employees appeared to be excluded from the program.
“Administration officials have done the right thing and revised their guidance to allow, as Congress intended, for firms that employ 500 or fewer people to qualify for the Paycheck Protection Program loans,” said Stephen E. Sandherr, the Association’s chief executive officer. “This change means the program is now more likely to help smaller firms continue to operate and retain staff.”
On April 2, the Small Business Administration issued an “interim final rule” to the effect that a business must have 500 or fewer employees and fall below the agency’s small business size standards—which for construction businesses are generally determined by an average annual income threshold, not number of employees threshold—in order to qualify for the new Paycheck Protection Program. Congress, however, declared that the program shall be open to all businesses that have 500 or fewer employees or fall below those size standards. Over the weekend, AGC of America alerted the Trump Administration to the problem, and late last night the U.S. Department of Treasury released new guidance about the Paycheck Protection Program loans that now allows firms with 500 or fewer employees to qualify.
Specifically, the new guidance includes the following:
Question: Does my business have to qualify as a small business concern (as defined in section 3 of the Small Business Act, 15 U.S.C. 632) in order to participate in the PPP?
Answer: No. In addition to small business concerns, a business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable).
The new guidance also states that “[b]orrowers . . . may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act” and its interim final rule. At the time it posted this guidance, the Treasury Department also notified the association of its action. Here is a copy of that notice.
The new Treasury Department guidance appears to clear the way for construction firms that employ 500 or fewer people to qualify for the new Paycheck Protection Program loans. They added that the association will work with administration officials to ensure that the Small Business Administration’s regulations and guidance are harmonized with this new Treasury guidance.
Related Stories
Coronavirus | Apr 15, 2020
How has your work been impacted by COVID-19?
The SMPS Foundation and Building Design+Construction are studying the impact of the coronavirus pandemic on the ability to attain and retain clients and conduct projects, along with other consequences.
Coronavirus | Apr 15, 2020
COVID-19 alert: 93% of renters in professionally managed multifamily housing paid some or all of their rent, says NMHC
In its second survey of 11.5 million units of professionally managed apartment units across the country, the National Multifamily Housing Council (NMHC) found that 84% of apartment households made a full or partial rent payment by April 12, up 15 percentage points from April 5.
Coronavirus | Apr 15, 2020
DCAMM teams with SLAM and Gilbane Building Company to re-occupy Newton Pavilion for temporary quarantine of homeless during COVID-19 pandemic
First and only quarantine shelter in Boston-area to convert a shuttered hospital for homeless patient occupancy.
Coronavirus | Apr 15, 2020
3D printing finds its groove fabricating face shields during COVID-19 crisis
The architecture firm Krueck + Sexton is producing 100 shields for a Chicago-area hospital.
Coronavirus | Apr 14, 2020
COVID-19 alert: Missouri’s first Alternate Care Facility ready for coronavirus patients
Missouri’s first Alternate Care Facility ready for coronavirus patients
Coronavirus | Apr 13, 2020
COVID-19 alert: City conducts a 'virtual building inspection' to allow Starbucks and bank to open
Bothell, Wash., issues a certificate of occupancy to developer after inspecting the property online.
Coronavirus | Apr 13, 2020
Construction layoffs spread rapidly as coronavirus shuts down projects, in contrast to job gains through February in most metros
Association officials urge quick enactment of infrastructure investment, relief for hard-hit firms and pensions in order to save jobs in construction and supplier industries.
Coronavirus | Apr 12, 2020
How prefab can enable the design and construction industry to bring much needed beds to hospitals, faster
The outbreak of COVID-19 represents an unprecedented test for the global healthcare system. Managing the pandemic—and saving lives—depends largely on the availability of medical supplies, including the capacity of hospitals. But the United States lags behind other nations, with only 2.8 beds per thousand people compared to 4.3 in China and 12.8 in South Korea.
Coronavirus | Apr 10, 2020
HGA and The Boldt Company devise a prefabricated temporary hospital to manage surge capacity during a viral crisis
A STAAT Mod system can be ready to receive patients in less than a month.
Coronavirus | Apr 10, 2020
COVID-19: Converting existing hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients
COVID-19: Converting existing unused or underused hospitals, hotels, convention centers, and other alternate care sites for coronavirus patients