By Kim Slowey | ConstructionDive
As construction projects around the country begin to reopen after COVID-19 shutdowns, contractors are returning to work. Whether because of reduced customer demand or government mandate, many have endured months of inactivity and the lack of revenue to go along with it.
A popular source of financial relief for the construction industry has been Paycheck Protection Program (PPP) loans, authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress to reduce the negative economic effects imposed by the novel coronavirus.
The loans are forgivable if spent on certain payroll and other costs; otherwise, they must be paid back in two years at 1% interest.
“Recent SBA guidance provides additional flexibility to PPP loan recipients, including a borrower friendly loan forgiveness application, and according to the most recent available data, the PPP remains funded with untapped appropriations. This additional guidance may give businesses who were on the fence enough confidence in the PPP to apply for a loan. If not PPP, businesses would do well to consider one of the many other loan programs available under the CARES Act.” ~ Dan Gauthier, Attorney at Rose Law Group