1. PPP Safe Harbor Deadline Extended
On May 5, 2020, the U.S. Treasury Department extended the safe harbor date for those that applied for a PPP loan prior to April 24, 2020. The original date, May 7, 2020, has been pushed back to May 14, 2020. Borrowers will not need to apply for the extension and additional guidance on how the SBA will review the certification will be provided shortly. NECA released the following alert pertaining to the extension and forthcoming guidance.
NECA’s Look Ahead: NECA is pleased by this extension after sending a letter to the Treasury department last week. We continue to advocate for NECA contractors as we move forward during this time.
2. Bill Introduced to Make 501(c)(6) organizations Eligible for PPP Loans
On May 5, 2020, Representatives Chris Papas (D-NH), Brian Fitzpatrick (R-PA), and Greg Steube (R-FL) introduced H.R.6697 – “Local Chamber, Tourism, and 501(c)(6) Protection Act of 2020”. This NECA supported legislation would expand the Paycheck Protection Program by allowing 501(c)(6) organizations, such as NECA Chapters, to access the Paycheck Protection Program to meet payroll and other necessary expenses during this crisis.
NECA’s Look Ahead: NECA will encourage the inclusion of this bill in any future COVID-19 relief package along with additional PPP reforms such as:
Extending the PPP to more than eight weeks or allow companies to apply again after the first eight-week period ends.
Increasing the qualified expenses covered under the Paycheck Protection Program to include nonpayroll expenses.
3. NECA Requests Infrastructure Support in Next COVID-19 Bill
NECA joined 71 trade associations and labor unions in a coalition letter to President Trump to encourage continued support for infrastructure in the next Phase of COVID-19 legislation.
NECA’s Look Ahead: NECA continues to advocate before the Administration and Congressional leaders for the inclusions of major infrastructure investment as a corner stone for the next phase of COVID-19 legislation, often referred to as Phase IV.