NECA COVID-19/Coronavirus Info & Resources

Question: Collective bargaining for building trades has always been excluded from Family Medical Leave benefits until now. I know there is a third writing underway and that NECA is working closely with our legislators but in David Long’s email last night there was no mention of the CBA receiving FML benefits or NECA’s opinion on this language. While I personally support the paid leave benefit, I believe these benefits have the potential to be a cash drain on employers and the government should reimburse the employer rather than offer quarterly tax credits. If our projects are temporarily closed, payroll tax credits will be limited.

Answer: The Phase II bill passed yesterday does not exempt CBAs from paid leave. This was a firm position from Pelosi and there wasn’t enough support to remove it. The Treasury Department has stated that the Phase II “will provide significant relief to small businesses that cannot afford the employee costs associated with coronavirus. The bill provides a dollar for dollar reimbursement for coronavirus related sick leave costs. To protect businesses concerned about cash flow, the Treasury will use its regulatory authority to advance funds to employers in a number of ways. Employers will be able to use cash deposited with the IRS to pay sick leave wages. Additionally, for businesses that would not have sufficient taxes to draw from, Treasury will use its regulatory authority to make advances to small businesses to cover such costs.” So that should solve your cash flow issues. They should be releasing guidance on that and the process of how it will be implemented in a few days, so accounting/law firms should receive then.

Essential Workforce and Critical Trades Considerations

Question: We understand that Electrical Contractors considered as an Essential Workforce and Critical Trades in both Kentucky and Indiana. Even though we fall within this category are we still limited to what job sites we are able to continue to work on? Can we only continue to work on sites that are also fall within the category of essential, or all sites?

Feedback: The majority of Contractors we have spoken to are planning to continue their normal work schedule on all job sites the best they possibly can. The overall interpretation that we have received has been that since we were deemed as essential we can carry on, on any site where the customer allows. With that said, of course it’s the controller or owner of the site that has to make the call on closure. In the end, their decision limits what we are able to continue work on.

Please be aware that this is only feedback and interpretation that has been received to this point on this question. If any new information contrary to this is received I will make everyone aware and this Feedback will be adjusted.

PPP Loan Forgiveness Application

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.

Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules.

NECA Legal Webinar Q&A and New PPP Loan Forgiveness Guidance (UPDATED 7/27/20)