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Withum Update – SBA Releases New FAQs on Loan Forgiveness

On August 4, 2020, the Small Business Administration (SBA), in conjunction with the Treasury Department, released 23 frequently asked questions (FAQs) regarding loan forgiveness under the Paycheck Protection Program (PPP).

The FAQs, released approximately one week ahead of the SBA’s opening its loan forgiveness application portal, covers general questions surrounding the process and the type and amount of costs that can be included in the loan forgiveness application. Some of the FAQs confirm previously-stated positions and represent logical extensions of prior guidance, and others contradict prior guidance.

This article focuses on the most salient points of the FAQs and highlights the departures from prior SBA guidance or prevailing interpretations.

General Loan Forgiveness FAQs

  • Sole proprietors, independent contractors and self-employed individuals with no employees can use the EZ loan application.
  • Borrowers are not required to make loan payments prior to their receipt of a decision on their loan forgiveness application, provided they the application is filed within 10 months of receipt of the loan. Interest accrues from the date of receipt of the loan, but only on the part of the loan that is not forgiven.

Payroll Cost FAQs

  • There is no change to the paid or incurred rule as applied to payroll costs.
    • Paid – payroll costs that are incurred prior to a borrower’s covered period (CP) but paid during the CP are includable.
    • Incurred – payroll costs that are incurred during the CP but paid on or before the next regular payroll date after the end of the CP are includable.
  • Cash compensation is determined using gross payroll amounts. For purposes of the $100,000 annualized limitation on cash compensation, all forms of cash compensation should be considered, including wages, tips, commissions, bonuses and hazard pay.
  • Employee group health care costs are includible to the extent paid by the employer during the CP for coverage during the CP, but not for coverage outside the CP. This narrowing of the “paid” rule contradicts prior SBA guidance and creates a difference in the treatment between cash compensation and employee group health care costs.
  • No forgiveness will be provided for retirement benefits accelerated from periods outside the CP. This too represents a narrowing of the “paid” rule and contradicts prior SBA guidance.
  • The FAQs confirmed prior guidance that the maximum owner compensation amount for a 24-week CP is $20,833 in total across all businesses, but it added that borrowers are free to choose how to allocate such amount among their businesses.
  • Changes were made to the calculation of the owner compensation limits by business type. Below are the new rules.
    • C Corporations: cash compensation relating to a C corporation’s shareholder/employees is limited to 2.5 months of their 2019 cash compensation (for a 24-week CP), subject to a cap of $20,833. The corporation also is eligible for forgiveness on its group health care costs, state/local employment taxes, and retirement contributions capped at 2.5 months of the 2019 retirement contribution amounts.
    • S Corporations: cash compensation relating to an S corporation’s shareholders/employees is limited to 2.5 months of their 2019 cash compensation (for a 24-week CP), subject to a cap of $20,833. The corporation also is eligible for forgiveness on its state/local employment taxes, retirement contributions capped at 2.5 months of the 2019 retirement contribution amount, and health care contributions for owners owning less than 2% of the stock of the S corporation (or family members of such owners). Group health care costs are not eligible for forgiveness for owners or for family members of owners holding at least 2% of the S corporation’s stock.
    • Self-Employed Schedule C (or Schedule F) Filers: forgiveness is capped at 2.5 months of 2019 net profit as reported on Schedule C, line 31. No forgiveness may be obtained for group health care costs, retirement contributions, or state/local employment taxes.
    • General Partners: forgiveness is capped at 2.5 months of 2019 net earnings from self-employment (on Schedule K-1, box 14a) multiplied by .9235, and payment of this amount must be made during the CP. No forgiveness may be obtained for group health care costs, retirement contributions, or state/local employment taxes. The partners’ 2019 Schedules K-1 must be submitted along with the partnership’s loan forgiveness application.

If you have any questions regarding the loan forgiveness process, please contact a member of Withum’s SBA Financial Assistance Services Group.

Nonpayroll Cost FAQs

  • There is no change to the paid or incurred rule as applied to nonpayroll (i.e., overhead) costs.
  • No change to the definition of a covered mortgage in the CARES Act, but the FAQs state that interest on an unsecured line of credit is not eligible for forgiveness because the loan is not secured by real or personal property.
  • The renewal of a lease that was in place prior to February 15, 2020, will not affect loan forgiveness for the rental payments on such renewed lease.
  • Additional color is provided to the previous guidance that “transportation” expenses include gasoline for a borrower’s vehicle. The FAQs provide that “transportation” expenses include transportation utility fees assessed by state and local government.

Headcount and Wage Reduction FAQs

  • The SBA previously announced a safe harbor with regard to headcount reductions where the employer made an offer of reemployment that was rejected by an employee. The FAQs add that borrowers must demonstrate both an inability to hire similarly-qualified individuals on or before December 31, 2020, and that they informed the relevant state unemployment office of the offer within 30 days of the employee’s rejection of the offer.
  • With regard to salary/wage reductions, the FAQs reiterate that the borrower should only take into consideration decreases in salaries and wages, and not additional compensation such as bonuses, commissions, etc.

The FAQs provide additional guidance for borrowers, but hopefully Congress acts to further limit the loan forgiveness process either by eliminating the requirement to apply for certain loan sizes or by further streamlining the application process. Unless it does, the SBA plans to open its loan forgiveness application portal in the next few days. To the extent borrowers are left to make reasonable assumptions about the operative rules, we continue to encourage full disclosure as part of the loan forgiveness application process.

8/10 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their August 10 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.

Meet our WiMI Mentors/Mentees

MCAA’s WiMI Committee continued conversations this month with mentees and mentors participating in the WiMI Mentor Program. We are excited to introduce Ali and Wendy!

Ali Brown, a Senior Human Resources Major at The University of Nebraska, joined this program in hopes of meeting an industry professional that could share her journey and experience and help guide her on her newfound path. Ali has changed her major three times throughout her time at U of NE, starting as an architectural engineer major, switching to study construction management, and then recently transitioning to focus on HR. Ali was pleasantly surprised to be paired with Wendy, someone who is doing exactly what, she recently discovered, she would like to pursue in the future.

Wendy Glauber, has years of experience in human resources and compliance management, and is currently the General Counsel & Human Resources Director at John W. Danforth Company in Tonawanda, NY, where she has worked for the past three years and also serves on the WiMI Committee. Wendy has made it part of her mentoring mission to connect Ali with other female HR professionals in the industry, noting it is imperative that women have a supportive professional network.

Ali is grateful for the connections she has been able to make through this program, and for the continual encouragement she has received. Wendy has introduced Ali to other HR professionals to learn more about the field and has invited Ali to virtually shadow Wendy and Danforth’s HR Manager so that Ali can be exposed to the various facets of HR.  Ali is excited about the opportunity to observe what she has learned in school and see it put into action.

Wendy has also inspired Ali in a number of other ways. At last year’s WiMI Committee meeting, Wendy first heard about Women in Construction Week, which occurs every March. After learning about this recognition week, Wendy felt compelled to celebrate the women of Danforth.  She and her team planned a luncheon for all the women within the John W. Danforth Company team – both in the office and in the field. A prominent woman from their community, whose company is valued partner and customer of Danforth, spoke at the lunch and shared insights about being a women in a male dominated industry.  This was the first time the women of Danforth had celebrated together and they were incredibly grateful for this opportunity to connect. Wendy says many of them are still talking about it and continue to thank Danforth  for hosting. This is an event Danforth  plans to host every March in hopes that by sharing exciting ideas like this with Ali, Ali will implement and host her own similar events one day!

Ali and Wendy were looking forward to meeting in person at MCAA’s Convention in Maui this past March, and then reunite at MCAA’s WiMI Conference in June. Unfortunately, the pandemic altered those plans, but this has not stopped them from communicating, collaborating and continuing their monthly calls and catch-ups. In fact, when asked if they see this partnership extending beyond the six month commitment, they both said; “Absolutely!”

Together they’ve established goals for Ali that extend into the next school year. Ali is looking forward to attending job fairs this fall and is happy to have Wendy by her side to help her prepare her resume, practice interview questions, and just provide encouragement. All things to set Ali up for success!

For more information visit the Women in the Mechanical Industry Initiative Page.

8/3 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their August 3 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.

Murphy Company’s Rick Reams Promoted to Vice President – Safety and Quality

MCAA member Murphy Company recently promoted Rick Reams to Vice President – Safety and Quality. Tom Skaggs, Executive Vice President, made the announcement, saying, “Rick’s work ethic, professionalism and genuine concern for our workforce are assets to the organization. We are confident that under Rick’s leadership we will further strengthen our safety and quality programs.”

Tom commended Rick’s work, noting, “Since rejoining Murphy Company as our Corporate Safety Director, Rick has demonstrated exceptional leadership and has contributed significantly to our improved safety performance.”

Rick has over 25 years of experience as a safety professional and consultant in a variety of industries. His work has focused primarily on heavy industrial and large commercial projects in both the public and private sectors.

In addition to serving as President of the American Society of Safety Professionals (ASSP), Rick is an active member of several other local and national safety and construction boards, including the MCA of Eastern Missouri’s Safety Committee, the Associated General Contractors of America (AGC), the American Subcontractors Association (ASA), the St. Louis Council of Construction Consumers (SLCCC), the National Demolition Association (NDA) and the American Allied Safety Council (AASC).

Withum COVID-19 Bill Update – 7/29/2020

Second Round of PPP Loans:  There has been a lot of news swirling online that new legislation will open the door for borrowers to get a second PPP loan.  Also there is more chatter that automatic forgiveness for certain loans is on the horizon. It appears as though early August may be the target for new legislation if it comes. Details on this are fluid to say the least, but it looks like both Republicans and Democrats are on the same page that the PPP is an effective tool that they want to use as part of upcoming stimulus programs.

SBA Issues Procedural Notice on Forgiveness Process:  The SBA released a notice that provides clarification to lenders on how they should submit applications to the SBA for “final approval” after the lender has reviewed and approved a borrower’s forgiveness application. The highlight in this document is that the SBA indicated it will be using a third party software vendor to develop its portal, which will not be up and running until August 10th, so lenders will need to hold any applications until that time.  

The SBA further clarified that it may delay the opening of its portal further if any new legislation impacts the forgiveness process.  Withum has long believed Congress or the SBA would choose a loan threshold (e.g., loans of $250,000 or less) and grant “automatic” forgiveness to those borrowers, requiring only a signed certification that the funds were used properly. This would drastically reduce the amount of applications that the SBA and lenders would need to review. 

Withum does not have any official guidance or information on the legislative proposals reported in the press in past day or two (as noted above), but they think it may be prudent to wait to submit your application to your lender until a legislative consensus emerges. As a reminder, lenders have 60 days to process your loan forgiveness application and submit their decision to the SBA, and the SBA has 90 days to authorize the forgiveness amount.

PPP and M&A:  Withum often gets questions regarding how the sale of a business or the acquisition of another entity may impact a borrowers PPP loan and ability to obtain forgiveness. Withum put together an article addressing some of the complexity that may arise from these transactions, as well as how they impact the employee retention tax credit.

Reminder Section:  (what should I be doing):

  • Talk to your payroll company about claiming the employer payroll tax deferral and employee retention credits (ERC) that were made available in the CARES Act.
  • Talk to your payroll company about claiming the qualified sick/family leave refundable tax credits (from FFCRA, passed prior to the CARES Act).
  • Consider speaking with your lender to discuss changes to terms of existing debt facilities.
  • If you have already received a PPP loan, start forecasting how you intend to spend the funds and how you can qualify for the highest amount of loan forgiveness possible.  If you are not forecasting 100% loan forgiveness, then most likely you should seek assistance regarding your particular situation.  Withum believes the vast majority of borrowers should expect and plan to receive 100% loan forgiveness.

Modern Piping Inc. Intern Receives MCAA Internship Grant

Modern Piping, Inc, an MCA of Iowa member, presented Matt HermsenWhite with an MCAA Internship Grant at the start of his 2020 summer internship. The grant is funded by the John R. Gentille Foundation. Matt says, “I would like to express my gratitude to all of the members at MCAA for the grant. I have felt great reception from the mechanical contracting community, both at Modern Piping Inc and from MCAA. I am definitely considering a career in mechanical contracting and would like to say thank you again to MCAA for supporting engineering students with their education.”

Matt is currently studying Mechanical Engineering at Iowa State University with plans to graduate in December of 2020. This is Matt’s second year with Modern Piping as Project Manager Intern. He previously worked on piping in the summer of 2018 and this year’s focus was in HVAC work.

“I am very grateful to be with Modern Piping for a second summer. They have given me ample opportunities to participate in team meetings, bidding, productivity tracking, and project manager tasks. All of the people at Modern Piping have been friendly, welcoming, and willing to teach me practical and technical skills.”

Due to the impacts of COVID-19, Matt’s internship experience was completely virtual. Throughout his work, Matt has been supervised by Bob Brown, the President of Modern Sheet Metal.   

Matt’s main summer projects consist of the following:

  • Project bidding for commercial and medical buildings
  • Duct fabrication productivity tracking
  • Creating weekly report system to help Project Managers better understand costs hitting projects on a weekly basis
  • Project administrative tasks: startup, permits, close out documents, etc.

Matt says “although the virtual format came with challenges, it was an opportunity to learn how to collaborate with coworkers and accomplish tasks in an online setting which will be a valuable skill for a 21st century workplace.”

About the MCAA Internship Grants

Having MCAA interns working at member companies is a win-win for both the students and the mechanical contracting industry. Employers get fresh talent and build a pipeline of future employees, while students gain experience, create connections, develop skills and further their interest in mechanical contracting. In paying the student instead of the employer, MCAA’s goal is to increase the overall number of interns and drive the overall number of talented employees accepting full-time positions with MCAA members post-graduation.

How the Grant Application Process Works

Prospective interns must be in good standing at an accredited two- or four-year college, university or technical school. While MCAA encourages its members to give priority to students from the MCAA Student Chapter Program, this is not a requirement to receive a grant.

Each MCAA member company can submit up to two internship grant applications per year. Once an application is reviewed and accepted, MCAA will send a $500 gift card to the member company so they can present it to the student at the start of their internship.

MCAA will follow-up with each company and intern to ensure the process and overall internship experience was successful.

Start Your Search for Top Talent Today

MCAAGreatFutures.org gives members access to student profiles and resumes. The profiles are searchable by university, desired location, and even a specific skill set, like BIM or AutoCAD. A keyword filter allows users to zero in on students who fit the bill.

Not finding a match? Try reaching out to our 61 MCAA Student Chapters. The chapter advisors are a great resource to help find the right person. And, MCAA members have exclusive access to post job openings on our job board.

Help build our industry’s GreatFuture – apply for a grant!

Joint Response to Critique of Groom Law Group’s Paper on Composite Plans

In a joint letter to the Congress, the national labor/management coalition responded to the Western Council of Teamsters rebuttal of the Groom Law Group paper of Composite Plans. Coalition partners include the Associated General Contractors of America, FCA International, International Council of Employers of Bricklayers and Allied Craftworkers, International Union of Operating Engineers, Laborers’ International Union of North America (LiUNA!), Mechanical Contractors Association of America, National Electrical Contractors Association, Sheet Metal and Air Conditioning Contractors’ National Association, The Association of Union Constructors, The International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, The Signatory Wall and Ceiling Contractors Alliance, United Association of Plumbers and Fitters, and United Brotherhood of Carpenters and Joiners of America. This July 31, 2020 version of the letter contains update analysis of the 5500 filings of the median critical and declining status plans.

GreatFutures Virtual Education Program Coming this September!

MCAA plans are underway to host the GreatFutures Virtual Education Fall Program! The program is aimed to help give the next generation of mechanical contracting leaders a deeper understanding of the industry and the ins and outs of creating a construction bid. The program will start September 15 and continue through November 16, 2020.

Included in this program will be the annual MCAA Student Chapter Competition, which will be released virtually to student chapters through Procore. The competition gives students the opportunity to apply what they’ve learned in the classroom by creating a bid for a real-life mechanical construction project.

The GreatFutures education program will navigate students through the competition project with online instructional sessions focused on components of a real-world contracting bid. MCAA will be launching live sessions each week, available to all students, faculty advisors and MCAA members.  The topics of the sessions will be taught by current MCAA industry leaders. Topics that will be covered include:

  • Student Chapter Competition Overview
  • Procore Overview: Learning about Construction Management Software
  • Young Professionals Panel: Kickstarting Your Student Competition Project
  • Basics of Estimating
  • Fundamentals of Scheduling
  • Project Organization: Staffing Your Project
  • Identifying Risks in a Construction Project
  • Digital Process of BIM
  • Understanding the HVAC/R Industry
  • The Importance of Planned Maintenance
  • How Companies Use Fabrication
  • The Business Side of Safety
  • Identifying Project Risks
  • Understanding the Finances of a Job
  • Organizing Your Proposal

Stay tuned for additional schedule and registration information!

Please contact Megan Walsh if you have questions about the GreatFutures Virtual Education program or any of our student activities.

7/27 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their July 27 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.

ASHRAE Epidemic Task Force Releases Updated Reopening Guide for Schools, Universities

As schools prepare to reopen for the fall academic year, the ASHRAE Epidemic Task Force has developed HVAC systems operation guidance to help mitigate the airborne transmission of SARS-CoV-2. The guidance includes checklists such as starting up HVAC systems prior to occupancy and checks and verifications to maintain during the academic year. The guidance addresses determining building readiness, filtration upgrades, facility design recommendations and controlling infection outbreak in school facilities.

Link to more information and guidelines:  https://www.ashrae.org/about/news/2020/ashrae-introduces-updated-reopening-guide-for-schools-and-universities

Withum COVID-19 Bill Update – 7/20/2020

Automatic Forgiveness?: Treasury Secretary Mnuchin recently suggested publicly that the SBA should consider forgiving all PPP loans and forgoing the process of the forgiveness application. This would, of course, be a stunning change in direction with respect to the mechanics of loan forgiveness. There has been chatter for a while that the SBA may seek to forgo applications on “small” loans as a vast majority of the loans issued were below $150k. This would substantially reduce the workload of the lenders and SBA when it comes to processing applications, and is appearing more and more likely as the days roll on, though the actual dollar threshold is a moving target. 

EIDL Loans: As we all know, the EIDL loan program was funded and gained a lot of traction/interest at the same time as the PPP roll out. Many companies clamored to gain access to the loan product as a result of its favorable terms (30 year repayment, 4% max rate, no personal guarantee for small loans). Withum is starting to see clients identify onerous covenants and reporting requirements (e.g., quarterly financial reports and year-end reviewed financials). There does not appear to be uniformity among all EIDL loan agreements, if you received an EIDL loan, it is important to review your agreement to ensure you have clearly identified all reporting requirements that are connected with the loan.

Reminder Section:  (what should I be doing):

  • Talk to your payroll company about claiming the employer payroll tax deferral and employee retention credits (ERC) that were made available in the CARES Act.
  • Talk to your payroll company about claiming the qualified sick/family leave refundable tax credits (from FFCRA, passed prior to the CARES Act).
  • Consider speaking with your lender to discuss changes to terms of existing debt facilities.
  • If you have already received a PPP loan, start forecasting how you intend to spend the funds and how you can qualify for the highest amount of loan forgiveness possible.  If you are not forecasting 100% loan forgiveness, then most likely you should seek assistance regarding your particular situation.  Withum believes the vast majority of borrowers should expect and plan to receive 100% loan forgiveness.

U.S. Department Of Labor Publishes Additional Guidance on Wage And Hour Rules, Family and Medical Leave As Workplaces Reopen

WASHINGTON, DC – On Monday, July 20, the U.S. Department of Labor published additional guidance for workers and employers on how the protections and requirements of the Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), and the Families First Coronavirus Response Act (FFCRA) affect the workplace as workplaces reopen amid the coronavirus pandemic. The guidance from the Department’s Wage and Hour Division (WHD) includes commonly asked questions and answers that address critical issues in all three laws. 

“The U.S. Department of Labor understands how critically American workers and employers need this information as they return to work. Continuing to provide it remains a top priority for the Wage and Hour Division,” said Wage and Hour Division Administrator Cheryl Stanton. “With so many workers and employers committed to the greatest comeback the American workforce has ever seen, we are providing ongoing guidance to help them better understand their rights and responsibilities to protect workers and help ensure a level playing field for employers as our economy recovers.” 

Today’s guidance is the latest addition to compliance assistance materials the WHD has published. These materials include a Fact Sheet for Employees, a Fact Sheet for Employers and a Questions and Answers resource about paid sick and expanded family and medical leave under the FFCRA. WHD has also produced two guidance posters, one for federal workers and one for all other employees, that fulfill notice requirements for employers obligated to inform employees of their FFCRA rights; Questions and Answers about posting requirements; and simple Quick Benefits Tips to determine how much paid leave the FFCRA allows workers to take.

FFCRA will help the U.S. combat and defeat the coronavirus by reimbursing, through tax credits, American businesses with fewer than 500 employees for the cost of providing employees with paid leave taken for specified reasons related to the coronavirus. The legislation enables employers to provide such paid leave, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.

WHD provides additional information on common issues employers and employees face when responding to the coronavirus and its effects on wages and hours worked under the Fair Labor Standards Act and job-protected leave under the Family and Medical Leave Act at https://www.dol.gov/agencies/whd/pandemic

For more information about the laws enforced by the WHD, call 866-4US-WAGE, or visit www.dol.gov/agencies/whd

7/20 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their July 20 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.

GreatFutures Virtual Education Fall Program Coming Soon

In light of COVID-19-related restrictions and with the safety of our members and students in mind, MCAA has made the difficult decision to cancel this year’s in-person GreatFutures Forum, scheduled for October 1–3 in Milwaukee, Wisconsin.

To continue providing the top-of-the-line education that MCAA is known for, our Career Development Committee has come together to develop the GreatFutures Virtual Education Fall Program! The program is aimed to help give the next generation of mechanical contracting leaders a deeper understanding of the industry and the ins and outs of creating a construction bid. The program will start September 15 and continue through November 16, 2020.

Included in this program will be the annual MCAA Student Chapter Competition, which will be released virtually to student chapters this September. The competition gives students the opportunity to apply what they’ve learned in the classroom by creating a bid for a real-life mechanical construction project.

The GreatFutures education program will navigate students through the competition project with online instructional sessions focused on components of a real-world contracting bid. MCAA will be launching live sessions each week, available to all students, faculty advisors and MCAA members.  The topics of the sessions include estimating, scheduling, construction technology, safety and service, all taught by industry leaders.

Stay tuned for schedule and registration information in the coming weeks!

Please contact Megan Walsh if you have questions about the GreatFutures Virtual Education program or any of our student activities.

MCA of Chicago Hosts Summer Interns

The mechanical contracting industry provides many career paths, and that includes the opportunity to work for an MCA local affiliated association. This summer, MCA of Chicago has two interns, Judie Prophete and Ervin Prophete. They are learning about how an association is managed and how the MCA of Chicago provides resources and education to its members.

MCA of Chicago Director of Communications Abby Baughan said, “It’s been great having Judie and Ervin working with us this summer. They’re bright, hard-working and make great additions to our team. When I was in college, I knew very little about association work and mechanical contracting. Like most people, I sort of fell into it. I think it’s great that, as college students, Judie and Ervin are being introduced to this world filled with so much opportunity. I hope this internship opens their eyes to all of the possible career paths that are available to them.”

Meet Judie Prophete

Judie is an incoming senior at DePaul University, studying accounting and business management.

“As the accounting intern and administrative assistant for the MCA of Chicago, I spend the majority of my time helping our Director of Finance, Susan Rocque, with various tasks and projects. The other part of my time is spent doing administrative work around the office and helping where I am needed. I am learning a lot about accounting and finance, gaining a lot of new experience and learning a lot about what it is like to work in an office setting.”

During her internship, Judie hopes to continue learning more about the professional workplace and about programs and tools that are specific to her field of study. She also hopes to gain more confidence so she is prepared to enter the business world.

“From what I have seen in the month that I have been interning here, there are a lot of aspects of the professional workplace that school cannot prepare you for. The only way to truly learn these things and succeed is to actually be put in those situations and just do the best you can with what you have. I am fortunate enough to be learning those things surrounded by welcoming, forgiving and patient co-workers in a friendly and positive work environment.”

Meet Ervin Prophete

Ervin Prophete is a senior at DePaul University in Chicago, studying public relations and advertising.

Ervin is a marketing intern. His responsibilities include creating and posting graphics on social media, helping Director of Communications Abby Baughan with compiling the weekly emails, scheduling events on the MCA of Chicago Facebook page and updating the MCA website with future events and classes.

Ervin talked about what he hopes to get out of this internship. “I have learned a lot so far in this internship and feel that every day I step in the office is a day I gain more knowledge about the marketing world. I am hoping to just learn as much as I can and become proficient in the tools I have been introduced to in my time here so far. By the end, I would like to be able to use the knowledge I will have gained to do some freelance work while I finish school.”

MCA of Chicago Career Development

MCA of Chicago members are also focused on getting talented students into the mechanical contracting industry, even if they do not follow the typical academic path.

Brandon Hubner of Premier Mechanical, Inc., shared his company’s unique insight about hiring the right talent:

“The way the Premier has looked at hiring is that a person’s major focus of study or background is less important than the skills that they bring to the table and how well they can help round out our team and add value with other talents that they have. Construction, and mechanical contracting even more so, is a unique industry and every system we install is different. Rarely are two buildings built identically, or with the same team of general contractors and subcontractors. If systems and teams are rarely the same, then why always hire from within the same field of study? In our experience, we can better tackle unique projects with unique individuals. Given the number of variables there are to construction, we would be passing over a lot of really good candidates if we focused just on construction management and mechanical engineering majors.”

7/13 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their July 13 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.

Meet our WiMI Mentors/Mentees

 MCAA’s WiMI Committee recently launched a Mentor Program. Mentors and mentees signed-up to be a part of this program in hopes of gaining new perspectives on the industry, building connections, developing a support network, and more. Committee members recently took some time to speak with mentees and mentors participating in the program to find out how things are going. Meet our first pair, Hannah and Kristin! 

Hannah Leslie, an Assistant Project Manager at The Brandt Companies in Carrollton, Texas enrolled in the program as a mentee, hoping to be paired with a mentor who could share the do’s and don’ts of business, tips and tricks to success in the industry, and overall life advice. Little did Hannah know she would be paired with her perfect match! 

Kristin Blundell, a Senior Preconstruction Manager at U.S. Engineering in Westminster, Colorado was recommended to be a mentor in this program from a fellow colleague, a young Preconstruction Engineer who had previously been mentored by Kristin herself. Kristin, who has always taken young professionals under her wing, has proven to be the ideal mentor. 

Hannah and Kristin first connected at the beginning of this year. Their bond formed very naturally during their first phone call. Hannah had entered this program with a small handful of personal and professional goals she hoped her mentor would guide her in working towards. Through open conversations, Kristin helped Hannah expand her goals and identify her strengths to be successful. Also, from the very beginning, Kristin has reminded Hannah of valuable life lessons – stay true to herself, believe in hard work, and believe in herself. 

Kristin’s advice may seem simple, but it has been incredibly empowering for Hannah. Hannah, who is one of two females comprising a close-knit team of 10 individuals in her job site office, has recognized qualities in herself during the course of the mentorship that she now feels empowered to share with the team. Hannah has learned from Kristin to take pride in being a contributing female on the team. 

While Hannah and Kristin have a relaxed approach to their communication structure, they make sure to have a phone conversation at least once a month, every month. They also take comfort in just knowing the other is there for them anytime. An unexpected benefit the current pandemic has provided for both, is knowing they have a contact in a different part of the country to talk through how their respective companies have worked through these challenging times and implemented new work practices. 

With several hundred miles between them, with Hannah in Texas and Kristin in Colorado, they are bummed they cannot meet for an occasional cup of coffee or happy hour drink. However, they do look forward to the day they can meet in person, hopefully at MCAA’s WiMI Conference next June, if not sooner! 

For more information visit the Women in the Mechanical Industry Initiative Page.

McElroy’s Inc. Intern Receives MCAA Internship Grant

McElroy’s Inc., an MCA of Kansas City member, presented Parker Beal with an MCAA Internship Grant at the start of his 2020 summer internship. The grant is funded by the John R. Gentille Foundation. Parker said, “This grant will help me continue to fund my college degree and expenses. I see this not only as a great learning opportunity, but also as a motivation to tell other interns in the future about what I have learned and experienced in the mechanical industry.”

This is Parker’s third consecutive internship with McElroy’s Inc. The Architectural Engineering student has a particular interest in MEP. After he graduates from the University of Kansas in the spring of 2022, he intends to pursue a master’s degree in Business Administration.

This summer, Parker is using BIM software and other programs to aid in design and load calculations for the mechanical, electrical and plumbing (MEP) systems in both commercial and industrial buildings. He will be shadowing Vice President Wade Jueneman, head of commercial construction for McElroy’s Inc.

“McElroy’s has given me valuable opportunities to help further my understanding and knowledge in the mechanical industry,” Parker said of his experiences. “I’m looking forward to developing my skills to transform ideas into design solutions and then see my work in action.”

About the MCAA Internship Grants

Having MCAA interns working at member companies is a win-win for the mechanical contracting industry. Employers get top talent and build a pipeline of future employees. Students gain experience, create connections, develop skills and further their interest in mechanical contracting. In paying the student instead of the employer, MCAA’s goal is to increase the overall number of interns and drive the overall number of talented employees accepting full-time positions with MCAA members after graduation.

How the Grant Application Process Works

The MCAA member company will first ensure a prospective intern is in good standing at an accredited two- or four-year college, university or technical school. While MCAA encourages its members to give priority to students from the MCAA Student Chapter Program, this is not a requirement to receive a grant.

Each MCAA member company can submit up to two internship grant applications per year. Once an application is reviewed and accepted, MCAA will send a $500 gift card to the member company so it can present the Gift Card to the student at the start of their internship.

MCAA will follow-up with each company and intern to ensure the process and overall internship was successful.

Start Your Search for Top Talent Today

MCAAGreatFutures.org gives members access to student profiles and resumes. The profiles are searchable by university, desired location, and even a specific skill set, like BIM or AutoCAD. A keyword filter allows users to zero in on students who fit the bill.

Not finding a match? Try reaching out to our 60 MCAA Student Chapters. The chapter advisors are a great resource to help find the right person. And, MCAA members have exclusive access to post job openings on our job board.

Help build our industry’s GreatFuture – apply for a grant!