The COVID-19 pandemic has severely impacted communities, the health care system and the economy.
For the construction industry, the crisis has forced work stoppages, delayed projects and caused lost jobs throughout the country. While many businesses have been forced to shut down their operations to effectively mitigate the spread of the virus, these businesses cannot be allowed to fail.
Thankfully, Congress has acted with swift, bipartisan approval of significant emergency relief.
CARES Act Provides Lifeboat
For many construction businesses, many with 500 or fewer employees—the most important source of relief is the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes the $349 billion Paycheck Protection Program that has provided forgivable loans for small businesses to keep employees on payroll as the industry works to get to the other side of this crisis. As of press time, Congress has provided an additional $310 billion for the PPP, and negotiations on further packages will continue to ensure that small businesses have access to the resources they need during this national emergency.
The CARES Act’s business tax provisions, including a change to the tax treatment of business losses, delays in estimated tax payments and technical corrections to the Tax Cuts and Jobs Act, are also all meant to provide additional, much-needed relief to construction businesses, enabling them to remain operational and provide pay and benefits for all employees.
The Federal Reserve also launched a new program, known as the Main Street Lending Program, authorized under the CARES Act, that will provide loans for small and mid-sized businesses with up to 10,000 employees.
An Essential Service
In many parts of the country, construction has been deemed an essential service, and rightfully so.
While the federal response to this crisis continues, many in construction are looking toward the light at the end of the tunnel and the eventual recovery of the economy. Enactment of a substantial infrastructure package would help address much-needed repairs and modernization of the nation’s transportation infrastructure.
In addition, a significant investment in federal construction accounts and programs would help sustain economic activity and accelerate the recovery efforts after the immediate effects of the COVID-19 pandemic have passed.
The many benefits of infrastructure spending arguably outweigh the costs. Every $1 billion in extra construction spending on infrastructure generates an average of at least 3,300 construction jobs, and future generations will reap the rewards of strategic investments in schools, water treatment plants and energy production, which have been found to improve quality of life, the environment and opportunity for all Americans.
Safety Will Be Key
As construction professionals work to provide critical services, their safety and that of the communities where they work are of the utmost importance. Ensuring the health of the nation’s workforce will be vital to a strong economic recovery.
As construction employers continue to learn more about the virus, they will leverage existing best practices and implement enhanced measures, with the ultimate goal of keeping employees safe and healthy. Industry leaders are committed to adapting to new requirements; supporting a renewed sense of safety and security; and ensuring jobsites can be run productively and effectively in this new environment.
