“Grace period” extended and SBA commits to new guidance on eligibility – FAQ 43 was released May 5th, indicating that the May 7th deadline for companies to return PPP funds without penalty if they have determined they are not eligible has been extended to May 14th. The big news is that the SBA committed to providing “additional guidance” on how it will review the certifications made in the application prior to May 14, 2020. This could mean that the SBA will further clarify (and possibly narrow) the scope of what they meant by the concept of “economic uncertainty.” This is something that borrowers will need to closely consider.
Clarification on Foreign Affiliates – FAQ 44 was released May 5th and clarified that, for the 500 employee limit, the employees of foreign affiliates need to be included. This is important because many companies were under the impression that only US employees were considered when it came to affiliation guidance. Thus, if a company had a foreign subsidiary, those employees will now need to be included for the purpose of the 500 FTE headcount limitation. Keep in mind, the 500 employee limit considers ALL employees as a full employee. So a part time employee is considered 1 person for the purpose of this calculation. This may require some companies to re-evaluate their eligibility.
Reminder Section: (what should I be doing):
Call your payroll company about claiming the payroll tax deferrals and employee retention credits that were made available in the CARES Act.
Talk to your payroll company about the Sick Pay Bill (passed prior to the CARE Bill).
Be in constant communication with your bank (about status of your PPP application).
Consider speaking with your bank to discuss changes to terms of existing debt facilities. The banking system remains strong.
If you have already applied for the PPP, start forecasting how you intend to spend the funds and how to qualify for the highest amount of forgiveness possible.
Alston & Bird have released their May 6 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.
Cash is the lifeblood of any business. In good times, cash management may slip to the back burner, but with the current pandemic and companies delaying payments, now is not the time to be casual about your money. Join NEI and UA training instructor, Kathy Crosby, to learn how to keep delayed payments from getting out of control, protecting your rights, and how to measure your company’s cash flow in order to better manage it. Attendees will learn about leveraging relationships with vendors, subcontractors, banks and sureties, as well as how to reduce the risk of delayed cash when it comes to retention, change orders, T&M work and billing issues.
When: Tuesday, May 12 at 1:00 p.m. – 2:00 p.m. EDT
MCAA’s Virtual Trade Show connects our contractor members with the members of MCAA’s Manufacturer/Supplier Council.
Participating companies highlight and link to new products, product lines, services, solutions or web pages of particular interest. Here are just a few of the recent additions:
Team Industries, Inc.
Designed in accordance with “Lean Manufacturing” concepts, Team’s pipe welding positioners deliver economical, high quality pipe welding. Team’s positioners are designed for the highest quality and peak efficiency in pipe welding.
LENOX®
LENOX has over a century of cutting expertise, delivering solutions that make our tradesmen more productive. LENOX is now redefining performance levels with the introduction of the LAZER CT™ Carbide Tipped Reciprocating Saw Blades.
Visit the Smart Solutions Case Studies area of our website to learn how other mechanical contractors found their win-win with cost-saving and productivity-enhancing applications from members of MCAA’s Manufacturer/Supplier Council.
This section of our website also includes tips and ideas to help your company save money and enhance your productivity. Don’t miss it!
Below are two recently issued Frequently Asked Questions published by the Small Business Administration and Treasury Department on eligibility for Paycheck Protection Program loans for public and privately owned companies and eligibility for firms that have access to other adequate sources of liquidity. The after-the-fact guidance issued on April 24 and April 28 is causing some degree of confusion among firms that have already applied for and been granted PPP loans before publication of this criteria.
Following the FAQs below is some discussion of the issue by the national accounting firm Withum. MCAA is not providing legal or accounting counsel on this issue and is advising member firms of this issue so they can discuss with their legal and accounting consultants.
31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.Lenders may rely on a borrower’s certification regarding the necessity of the loan request. 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. (11) 11 Question 31 published April 23, 2020.
37. Question: Do businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Answer: See response to FAQ #31. (14) 14 Question 37 published April 28, 2020.
Analysis From Withum: FAQ 31 was a reference to the recent (and somewhat controversial) FAQ asking if companies owned by “large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?” This FAQ is interesting, because FAQ 31 didn’t specifically include or exclude private companies from its question, so it is unclear why the SBA decided that it needed to take this step and offer even further clarification. Also this FAQ does not seem to answer its own question, it just refers to another question’s answer…which doesn’t really address the question either….very strange. One could surmise that the SBA may be trying to narrow in on a point of view regarding PE/VC investors, but even that doesn’t make a lot of sense given the fact that in the 3rd Interim Final Ruling (IFR) an FAQ specifically states that portfolio companies of PE funds are in fact eligible as long as they meet the affiliation guidance. Your guess on all of this is as good as ours.
In the end, FAQs like this don’t really do much to create clarity, and certainly raise concerns from the middle market who are seeking to act in good faith. Our recommendation ultimately remains the same – document your position and the circumstances that existed at the time you applied for the loan, if you are unsure, certainly consider consulting counsel. We also recommend documenting the uncertainties that existed within your board minutes (if you keep them) so it is clear as to what the facts were, and what was known or knowable at the time you applied.
Analysis of FAQ #31 regarding eligibility: Last week we provided a high level breakdown of a somewhat controversial FAQ that seemed to target PPP eligibly for public companies and businesses “owned by large companies”. This FAQ created some anxiety amongst PE and VC backed entities because it seemed to imply that the goalposts may have been moved for them in terms of considering if they can apply. We found a great article that breaks down this FAQ even further in case you wanted to dig in. In the end our recommendations from last week have not changed, documenting your view on why you are eligible and why you believe you have business uncertainty remains important, we don’t know that this FAQ created any major changes for the typical applicant, but certainly may have been a message to Wall Street.
We continue to explore this issue and will provide more guidance as it becomes available.
Using an effective hand sanitizer is one of the most important things everyone can do to help prevent the spread of COVID-19. This is especially true on construction jobsites and in mechanical service areas where there is no running water. To be effective against COVID-19, the CDC states that hand sanitizers must contain at least 70% alcohol. Since alcohol is flammable, we must be extremely careful when using it. Many things on a jobsite can serve as an ignition source, such as a lighter, a welding torch striker, welding and grinding sparks, even static electricity.
Alston & Bird have released their May 4 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.
Arden Engineering Constructors recently completed work on two COVID-19 field hospitals which add 935 patient beds for the anticipated COVID-19 surge in Rhode Island. The project had two 12-hour shifts running seven days a week from the time it began on April 6 until completion on April 18.
Arden provided and installed all of the HVAC piping, plumbing, ductwork, and medical gas piping for the project. Their in-house fabrication shop created finished bathroom piping systems ready for installation.
Unique Metal Works, an Arden Building Company, fabricated and installed approximately 6,000 feet of spiral exhaust ductwork with connection to plenum to provide “negative air flow” and prevent the escape of possible contamination. Their ability to do this provided both cost efficiencies and greater quality control for the project.
Earthwise Energy Technologies of Arden Building Companies, installed the monitoring and alarming for the negative pressure exhaust systems in the patient and pharmacy areas. The systems are monitored remotely using a graphic interface that allows needed adjustments to be made at any time, from anywhere.
MCAA thanks Arden Engineering Constructors for their efforts in support of healthcare providers, and for providing alternative care facilities for COVID-19 patients.
Alston & Bird have released their May 1 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.
The full-featured digital version of our Membership Directory & Buyer’s Guide enhances the look and feel of our directory with digital-only benefits to help you:
Network from anywhere with linked email addresses.
Connect with the companies, products and services that interest you using linked web addresses.
Get where you’re going…fast…with bookmarks and a linked table of contents.
Find advertisers instantly with a linked advertiser index.
MCAA’s Membership Directory & Buyer’s Guide is free as a member benefit. Printed directories will be sent to members in the next few weeks.
Alston & Bird have released their April 29 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.
This educational video provides users with an overview of the next generation of WebLEM — WebLEM+Plus. In this video, you will learn how labor units are created for both the Component and the Work Activity Method (WAM) and what factors are considered in creating labor units. The video highlights the new and enhanced features of WebLEM+Plus. You will learn how to navigate the updated software, how to access Component and Work Activity labor units and how to locate information associated with each product. The video will also walk you through a detailed example of how to use the Work Activity Method (WAM). Included in the recording is an overview of the work our industry’s manufacturers and content providers are doing to connect their product data and drawing content to the WebLEM+Plus. Welcome to WebLEM+Plus, the next generation of the industry standard for estimating labor hours.
MCAA’s long-time partner Milwaukee Tool has updated their COVID-19 Resource Guide to include additional content on best practices for remote meetings, eSERVICE tool repairs and digital training resources. The guide addresses tool cleaning, operations protocols, digital training, shipping and inventory updates, Milwaukee Tool’s #TOGETHERweSTAND campaign and how to stay in contact with Milwaukee Tool. The guide also includes links to sample documents, including a Health Screening Planning Form, Health Pre-Screening Questionnaire and Potential Considerations for Documenting Procedures. MCAA thanks Milwaukee Tool for the long-standing partnership, and for sharing these resources with MCAA.
Alston & Bird have released their April 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.
As the new Senate bill was passed by the House on April 23, 2020, the Paycheck Protection Program (PPP) gained additional emergency funds. MCAA partners and law firm, Lindabury, McCormick, Estabrook & Cooper, P.C., provide an overview of the program application and loan forgiveness requirements to assist MCAA members.
Murphy Company is playing an important role in their communities’ fight against the COVID-19 pandemic. As the number of citizens requiring hospitalization has surged, so has the need for additional isolation rooms on a quick-turn schedule. The pandemic has presented additional challenges, and Murphy Company has met them all with innovative and fast-moving solutions.
St. Joseph Hospital
In an effort to convert standard patient rooms to negative pressure rooms, Murphy’s creative team figured out a way to install temporary ductwork along the building by feeding the room through a window, with HEPA filtration located on the roof of the St. Charles, MO hospital.
The fast-paced project converted rooms in 17 hours with an average crew size of six working around the clock (7:00 am – 12:00 am).
St. Anthony North Health Campus
Murphy Company converted a floor of standard patient rooms to negative pressure rooms for this job. From inception to turnover, this was done in 7 calendar days.
Project Timeline
April 1: Design team finalized plans and drawings with the St. Anthony North Health Campus team
April 2: Crew started layout, sketched and moved to fabrication
April 3: Roof curbs were installed
April 4: A weekend crane pick was staged to install the new exhaust fans. The sheet metal shop worked around the clock to complete the ductwork fabrication needed the next day
April 5: Ductwork arrived on site and was installed
April 6: Started and balanced the first two fans and turned over 15 rooms for the hospital to use that night
April 7: The last fan was started up, and the remaining 14 rooms were turned over in the afternoon
SSM Health DePaul Hospital
Murphy Company orchestrated work on three negative pressure rooms for the Intensive Care Unit (ICU) at DePaul Hospital.
Kelly Pearce, Incident Commander at DePaul Hospital, praised Murphy Company for its work, saying, “I want to pass on my personal gratitude as the incident commander for DePaul Hospital as well as from the perspective of my ICU nursing background for the work your teams did for us last night.”
“From the time we said ‘go’ around 16:45 yesterday afternoon, Jim Wesling and others from Murphy and Kaiser were able to convert 16 ICU rooms on 3N from normal airflow to airborne infection isolation (AII) negative pressure standards by 04:30 this morning,” she added. “Their actions have made it safer for our staff and providers to care for patients infected with COVID-19 and to provide more peace of mind to the staff working through this very turbulent situation.”
Handwashing Stations
Murphy Company needed a way for its employees to wash their hands when the public areas of jobsites were closed due to COVID-19.
Vice President Scott McIntosh came up with the idea of creating portable sinks to bring on sites. The fabrication shop was challenged with the idea, and a prototype was created in 2 days.
The project started in Murphy Company’s Denver office, and was immediately supported by management in the St. Louis office.
The first prototype was a rectangular sink created using a stainless steel countertop and a Knaack cart. A hot water heater was installed in the cart’s cabinet. Water was supplied via a garden hose, and the stainless steel holding tank, with a capacity of +/- 20 gallons of wastewater, was drained via a garden hose. This option proved to be expensive due to the cost of the materials involved.
A second, less expensive option was developed next. The round sink, which is strapped to a dolly for portability, features a hands-free, sensor-powered water faucet and soap dispenser. This prototype has rear water-source hookups (hose into the valve) and a drain in the front to allow the water to deplete from the unit itself. The wastewater storage capacity is +/- 40 gallons.
The round sink was self-contained and required only 120VAC to power a small pump and instant heater. Water fed from a 5-gallon water jug and was disposed of in a 5-gallon bucket. The original design was adapted to replace the self-contained water and waste system. This meant removing the pump and adding a 2.5 gallon electric water heater in its place. This option allows jobsites to have a moderate amount of warm water for proper hand washing without the concern of running out of water or filling a waste container.
The Denver fabrication shop shared the drawings with the St. Louis shop, which used the materials available to them to create their iterations of the rectangular and round sinks.
Senior Vice President Robert Mathisen said, “We are now looking at a much less expensive prototype that does not include a hot water heater and is also for smaller construction sites. We are also looking at alternative components to reduce cost. One consideration was to incorporate a ‘hands-free’ faucet and a ‘hands-free’ soap dispenser to avoid touching of surfaces where contamination could reside.”
The projects were done by Murphy Company’s union tradesmen and women from Colorado Locals 3, 9, and 208, and Missouri Locals 36 and 562.
Murphy Company plans to deploy the sinks to jobsites that need them in Colorado, Wyoming, Missouri, and Illinois.
MCAA thanks Murphy Company for their efforts in helping to limit the impact of the COVID-19 pandemic, and for their contributions to the safety and health of both their employees and the general public.
Alston & Bird have released their April 24 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.
Lindabury, McCormick, Estabrook & Cooper, P.C. has prepared a Rider for MCAA members to include in a response to a proposal or an actual subcontracting agreement to take into account the risk to the parties during the COVID-19 pandemic.
Alston & Bird have released their April 22 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.
