New Paycheck Protection Loan Program Applies To Small Construction Firms
Update 4-27-2020: The SBA Paycheck Protection Program now has another $310 Billion in funding. Talk to your bank right away! This won’t last long.
Firms with 500 employees or fewer, will qualify for the Small Business Administration’s Paycheck Protection Program.
The new guidance clarifies that companies won’t be excluded because of income.
This is according to the Associated General Contractors of America who raised concerns that many small construction companies at first appeared to be excluded from the program.
The Small Business Administration’s Paycheck Protection Program originally placed a limit on what size business could be considered. This new guidance paves the way in particular, for construction companies to qualify for benefits.
“Specifically, the new guidance clarifies that businesses do not 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 program.” (*Construction Dive)
The program provides loans that don’t have to be paid back up to $10 million under certain conditions. Requirements include allocating 75 percent of the money to retain or rehire employees.
The program is part of the $2 trillion coronavirus rescue bill passed last month. Originally funded to $349 billion, there are already calls to increase funding by another $250 billion.
image courtesy of wikimedia commons
