ARLINGTON, VA. — The U.S.-based Associated General Contractors of America has issued a statement praising the passage of a bill in the House of Representatives that upgrades the federal Paycheck Protection Program.
The association’s CEO Stephen Sandherr said the bill passed May 28 corrects many of the problems with the original program and will enable construction firms to save jobs.
“Members of the House appreciate that one of the best ways to protect the economy from further harm is to make needed improvements to the federal Paycheck Protection Program,” said Sandherr. “While the loans have helped prevent countless construction layoffs during the past several weeks, their benefits have been limited by several problems that have become apparent since the original program was crafted. These problems include the fact the loans are only supposed to cover an eight-week period, set an unrealistic formula of payroll versus other legitimate expenses and are supposed to mature in two years.”
The measure approved in the House extends the coverage period to 24 weeks, revises the eligibility formula to 60 per cent of payroll costs and 40 per cent non-payroll, extends the maturity period for the loans from two years to five, and allows loan recipients to defer payroll taxes through the end of 2020.
“Combined, these improvements will save construction jobs and provide greater relief for many construction firms struggling to survive the COVID-19 pandemic and related economic lockdowns,” the statement said.
The bill now goes to the Senate and would, if approved ,be sent to President Donald Trump.
“Any additional delay in improving the Paycheck Protection Program will result in needless new job losses and additional financial hardships for many small, family-owned construction firms,” stated Sandherr.
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