1. New PPP Forgiveness Applications Available for NECA Contractors
On June 17, 2020, the Small Business Administration, in conjunction with Department of the Treasury, issued a revised Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020. The SBA also published a new version of the forgiveness application that applies to borrowers that:
Are self-employed and have no employees; OR
Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.
NECA’s Look Ahead: The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form. Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to receive full forgiveness of their PPP loan.
Click here to view the EZ Forgiveness Application.
Click here to view the Full Forgiveness Application.
2. House Transportation and Infrastructure Committee Holds Markup of INVEST Act
NECA’s Look Ahead: This markup, which was for a substantial highway reauthorization bill, had over 250 amendments. The hearing took over two committee days and is still ongoing. NECA will continue to monitor our priorities in this important legislation and issue a full report next week.
3. NECA Urges Support for JOBS Credit Act
The JOBS Credit Act of 2020, H.R.6776, has been gaining traction in Congress as the nation begins to reopen. This bill was introduced by Representative Stephanie Murphy (D-Fla.), along with original cosponsors Representatives John Katko (R-N.Y.), Suzan DelBene (D-Wash.), Brian Fitzpatrick (R-Pa.) and Chris Pappas (D-N.H.), to expand the Employee Retention Tax Credit (ERTC). This legislation incentivizes businesses to retain their employees to assist in recovery after being shut down due to COVID-19. A summary of the legislation can be found here.
NECA’s Look Ahead: NECA worked with a large coalition of stakeholders to send a letter to Congressional leadership for the NECA-supported legislation. We will continue to monitor this legislation while advocating for industry needs during this reopening period.