AGC Calls for Clarity of PPP Guidance
On April 29, AGC called on the Secretary of the Treasury to provide more clarity regarding its recent guidance warning firms of future audits and potential legal risks for companies that apply for loans. AGC is having discussions with key Administration officials on the impacts this guidance has had and ways it can be addressed. As this has created quite a bit of confusion, AGC sought to provide clarity to members through its ConstructorCast Coronavirus Special Report, which you can watch or listen to.
On April 23, the U.S. Small Business Administration (SBA) and Department of the Treasury issued new guidance (see question #31) that puts Paycheck Protection Program (PPP) borrowers and potential borrowers on notice that they should be able to prove in “good faith” that “[c]urrent economic uncertainty makes this loan request necessary to support [their] ongoing operations” to be eligible for the loan.
This appears to be a warning to PPP borrowers of the possibility of federal audits and investigations to come. The guidance goes on to state that any “borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020, will be deemed by SBA to have made the required certification in good faith.”
|While there is much ambiguity in this guidance, the message is clear that AGC members should have documentation of their market uncertainty and corresponding operational need for these PPP loans when they signed the loan application. |
To help inform AGC Chapters and members about this development, we put together an AGC ConstructorCast podcast on April 24 concerning updated PPP program guidance and what it means for construction firms (which was included in an all member COVID-19 email update). You can watch it HERE and listen to it HERE.
Set of AGC Webinars
Scheduled on Topic
AGC is finalizing a pair of webinars on this and other questions regarding the Paycheck Protection Program:
May 6, 2:00 PM
Paycheck Protection Program: Key Updates and Developments in the Ground Rules of the Program
May 7, 2:00 PM
Paycheck Protection Program: Preparing Your Business Today for Audits, Oversight, and Agency Enforcement and Whistle Blower Actions Tomorrow