U.S. Treasury Offers Paycheck Protection, SBA Loans, Tax Breaks
The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized approximately $2 trillion in aid for individuals and businesses throughout the country, as well as$349 billion in forgivable loans from the Small Business Administration. At press time, the Trump Administration was working out the details of Phase 4 of the act, which would provide additional emergency relief to hospitals and replenish loan dollars.
The Paycheck Protection Program provides eight weeks of cash-flow assistance through 100% federally guaranteed loans to small employers that maintain their payroll during the crisis. The Department of the Treasury states that PPP loans are available for qualifying tax-exempt nonprofit organizations described in section 501(c)(3) of the Internal Revenue Code (IRC), tax-exempt veterans organization described in section 501(c)(19) of the IRC, and Tribal business concerns described in section 31(b)(2)(C) of the Small Business Act that have 500 or fewer employees whose principal place of residence is in the United States, or meet the SBA employee-based size standards for the industry in which they operate.
Also eligible are sole-proprietors, independent contractors and other self-employed individuals. PPP loans must be made during the period prior to June 30.
The bill requires eligible borrowers to make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; that they will use the funds to retain workers and maintain payroll, lease and utility payments; and are not receiving duplicative funds for the same uses from another SBA program.
PPP loans can be as large as 250% of a business’s average monthly payroll costs over the last 12 months; however, the maximum loan amount under the program is million through Dec. 31. Allowable uses include payroll support, such as employee salaries, paid sick or medical leave; insurance premiums; and mortgage, rent and utility payments.
The retention tax credit provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis. Payment will be due over the course of two years, with half due on Dec. 31, 2021, and the balance due on Dec. 31, 2022.
For more information, visit treasury.gov and sba.gov.
Pittsburgh Area County Commission Repeals PLA Mandate
After pushback from local merit shop contracting groups, the Westmoreland County (Pennsylvania) Commission reversed a controversial contracting policy that had been in place for nearly four years.
In 2016, the Westmoreland County Commission signed an agreement with the Pittsburgh Regional Building Trades Council that required a project labor agreement as a condition of winning certain taxpayer-funded public works construction projects. In addition to the mandate, the county required contractors to fire any worker on a PLA project who did not join a union affiliated with the Pittsburgh Regional Building Trades Council within eight days of employment, including union workers belonging to a union not represented by the council.
In September 2019, Associated Builders and Contractors of Western Pennsylvania filed a lawsuit that challenged Westmoreland County’s ordinance saying the agreement violated the National Labor Relations Act and state competitive bidding laws. This February, County Commissioners terminated the agreement following the challenge. The change in policy is effective immediately.
2021 International Plumbing and Mechanical Codes Available for Pre-Order
The International Code Council (ICC) has announced the release of International Plumbing Code (IPC) and International Mechanical Code (IMC) for 2021.
IPC additions/updates include:
- Multiple-user toilet facilities to serve all genders are now permitted.
- Two new methods for relining/rehabilitation of existing sewers have been added.
- Accommodations for mounted rooftop solar panels over vent terminals have been added.
- CSA B805/ICC 805 Rainwater Harvesting Systems is now allowed as an alternative design method.
IMC additions/updates include:
- Clothes dryer exhaust terminals are now required to be at least three feet from any opening into a building.
- Polyurethane spray-applied foam on the exterior of ducts in attics and crawl spaces is now required to meet specific smoke and flame index limits.
- Fire and smoke dampers must now be provided with approved access for inspection and maintenance.
- Refrigerant tables now include new refrigerants.
These codes are revised on a three-year cycle and draw from hundreds of experts nationwide in order to enhance safety, as well as save time and resources. In 2019, a study conducted by the ICC found that counties using IPC saved $38 billion in construction costs over a 12-year period. For more information, visit shop.iccsafe.org.
Energy Bill Stalled in Senate
The American Energy Innovation Act, a sweeping, bipartisan proposal by Sens. Lisa Murkowski (R-Alaska) and Joe Manchin (D-W. Va), seeks to spur carbon capture, grid modernization and security while increasing U.S. international competitiveness and investing in clean energy technologies. Murkowski, chairman of the Senate energy and natural resources committee, has said the bill will modernize U.S. energy policy. Critics, however, are concerned regarding the act’s modest steps toward addressing climate change.
Lawmakers have added to the broad bill, including proposals on building codes and the reduction of heat-trapping chemicals.
The bill is currently stalled in the Senate because of a last-minute addition of an amendment from a separate Senate committee to phase down the use of hydrofluorocarbons.
The Senate bill would direct $270 million per year through 2025 toward Department of Energy programs to improve solar photovoltaics and integrate solar to the power grid. Another $120 million per year through 2025 would be directed toward wind power improvements, and $50 million per year through 2029 would bolster ongoing DOE research on improving grid-integrated energy storage, among several other funding provisions.
Concrete Industry Addresses Public Safety, Green Products
The American Concrete Institute (ACI) expanded its partnership with the Precast/Prestressed Concrete Institute (PCI) to increase efficiency for design of structural precast concrete structures through the new ACI-PCI Committee 319, which will address unique building code requirements to meet the needs of the industry while ensuring public safety and welfare.
In addition, the National Ready Mixed Concrete Association, in its Life Cycle Assessment report, announced a 13% reduction in its carbon footprint over a five-year period, responding to Architecture 2030’s Challenge for Products that asked the materials industry to reduce 50% of its carbon footprint by 2030.While the reductions are owed mainly to more efficient usage of Portland cement, a primary binder, concrete industry leaders continue to research and invest in the creation of innovative green technologies and products.
Multifamily Sector Experiencing Construction Delays
According to a survey conducted by the National Multifamily Housing Council in April, more than half (55%) of respondents who work in multifamily construction are currently experiencing delays in the jurisdictions where they operate as a result of the COVID-19 pandemic.
In addition:
- Of the 55% experiencing delays, 76% are dealing with delays in permitting and 59% in construction starts;
- About a quarter (24%) of respondents said a lack of materials is affecting their construction operations; and,
- 41%indicated that COVID-19 outbreak-related labor constraints are affecting construction operations.
- 73%indicated that they have implemented new strategies to deal with the hurdles forming in the virus’s wake, such as sourcing materials from alternative locations (43%), staggering shifts to reduce onsite exposure (52%) and using technology to replace in-person transactions like inspections and approvals (67%).
For more information, visit nmhc.org.
