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FDA Advises Against Hand Sanitizers Made by Eskbiochem

The Food and Drug Administration (FDA) is concerned that hand sanitizers manufactured by Eskbiochem SA de CV in Mexico may contain methanol (wood alcohol), which can be toxic when absorbed through the skin or ingested. The FDA has identified the following products manufactured by Eskbiochem:

  • All-Clean Hand Sanitizer (NDC: 74589-002-01)
  • Esk Biochem Hand Sanitizer (NDC: 74589-007-01)
  • CleanCare NoGerm Advanced Hand Sanitizer 75% Alcohol (NDC: 74589-008-04)
  • Lavar 70 Gel Hand Sanitizer (NDC: 74589-006-01)
  • The Good Gel Antibacterial Gel Hand Sanitizer (NDC: 74589-010-10)
  • CleanCare NoGerm Advanced Hand Sanitizer 80% Alcohol (NDC: 74589-005-03)
  • CleanCare NoGerm Advanced Hand Sanitizer 75% Alcohol (NDC: 74589-009-01)
  • CleanCare NoGerm Advanced Hand Sanitizer 80% Alcohol (NDC: 74589-003-01)
  • Saniderm Advanced Hand Sanitizer (NDC: 74589-001-01)

LEARN MORE

6/22 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their June 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.

Withum COVID-19 Bill Update – 6/19/2020

Updated Loan Forgiveness Application:  The SBA released two loan applications, one is an updated version and the other is a new “EZ” form. Withum has analyzed both in this article.  The EZ form allows borrowers to ignore FTE and headcount reduction calculations and fill out a truncated form if they meet one of three criteria. True to form, some of the criteria requires meaningful clarification, specifically the third one noted in the article. There are rumors that a number of new FAQs are coming out within the next week or so.  

With respect to the criteria below, it is unclear if the borrower needs to demonstrate an inability to operate at a point in time, or a period of time. Also the SBA calls out requirements and/or guidance  issued by three specific Federal organizations, and for the most part the restrictions on commerce have been imposed by States. Withum assumes more clarification is coming or borrowers will have to scour the websites of the three Federal organizations listed to see what restrictions or guidance have been provided.

“Borrower was unable to operate during the CP at the same level of business activity as before 2/15/20 due to compliance with requirements established or guidance issued between 3/1/20 and 12/31/20 by HHS, CDC or OSHA, relating related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.”

New Bill in Congress Relating to the PPP:  It’s a new week, so there is of course a new Bill in the works. This one is called the Prioritized Paycheck Protection Program (P4) Act. This Bill is designed to allow small companies (less than 100 employees) to obtain a second PPP loan if they exhausted their current PPP loan and have suffered a 50%+ reduction in business as a result of COVID. This Bill was just introduced and we will see if it picks up steam in the coming weeks.  

Updated Loan Forgiveness Calculation:  The rules relating to loan forgiveness have evolved over time. Withum has updated the article on the mechanics of loan forgiveness here for those who are looking for updates and examples.

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 qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act).
  • 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.

MCAA Mourns the Passing of Past President Robert T. Armistead, P.E.

MCAA is saddened by the loss of Robert T. Armistead, P.E., who served as our President in 2010. He died peacefully at his home on June 16, 2020, surrounded by his loving family. Our thoughts are with Susan, Robert, Kane, Bryan and the extended Armistead family during this difficult time. â€œBob truly loved the MCAA and his time with everyone involved in the organization. He will be greatly missed,” said Timothy J. Brink, MCAA’s Chief Executive Officer.  

In an announcement to MCA of New Jersey, Inc. members, Executive Director Marty Drobny said, “We will miss our friend much. His positive impact within the industry will live on forever.” 

Bob was President of Armistead Mechanical, Inc., a fourth-generation mechanical contracting and engineering firm that predominantly serves the New Jersey and New York Hudson Valley areas. The company specializes in commercial and industrial plumbing, heating, air conditioning and process piping. Raised in the family business, Bob worked there over summers and school breaks, learned the trade in the field and later worked with the estimators and project managers in the office.  

After college and Navy service, Bob returned to the family business, where under his leadership, Armistead Mechanical developed an impressive project portfolio and a staff that is known for excellent customer service. 

When Bob brought his energetic style and understanding of the details of the industry to MCAA, his strong belief in educating students led to an invitation to serve on the MCAA Career Development Committee, where he tirelessly volunteered his time to aid in the development of programs and services for our industry’s future leaders.  In fact, Bob was one of the committee’s longest serving members, acting as a judge during the final round of the annual Student Chapter Competition at many of our annual conventions, and helping to set the standard for the dynamic program it has become today. 

A natural off-shoot of his service on the Career Development Committee, Bob’s passion for perpetuating the flow of talent into the industry also extended to his position on the National Board of the ACE Mentor Program that educates and mentors high school students about careers in the architecture, construction—including the building trades, and engineering.  He also served the Mechanical Contracting Education & Research Foundation, now the John R. Gentille Foundation, which funds many of MCAA’s student chapter activities. He also served on the foundation’s Board of Trustees as well as on the MCAA Technology Committee. 

On a personal note, Bob was blessed with a beautiful wife of over 50 years, Susan, and three sons, Robert, Kane, and Bryan, who work in the family business.  In his spare time, Bob served on the Orange County Industrial Development Agency and was active with the Boy Scouts, winning the Orange County Boy Scouts’ Distinguished Citizen Award in October of 2009. 

Due to the current national health crisis and continuing restrictions, funeral services and interment will take place privately, and a memorial event celebrating Robert’s life will be planned for a later date. 

Friends are encouraged to share stories, photos, and memories of him with the family by sending letters to: The Armisteads at 6 Hilltop Drive in Goshen, NY 10924. 

In lieu of sending flowers, the family asks that you consider a donation to the following organizations: 

Obituary

Withum Update – SBA Releases Updated PPP Loan Forgiveness Application(s)

On June 17, 2020 the SBA issued not one, but two PPP Loan Forgiveness Applications and sets of instructions – the revised PPP Loan Forgiveness Application and instructions (PPP Application) and the PPP Loan Forgiveness Application Form EZ and instructions (PPP EZ Application).

The revised version of the original loan forgiveness application hews closely to the original that was released on May 15, 2020, but updates it to accommodate the changes to the PPP made in the PPP Flexibility Act.  Both applications (and the two sets of related instructions) clarify some points and, in true PPP form, raise additional questions. Let’s discuss the salient points and the changes, starting with the biggest news.

Introduction of the PPP Loan Forgiveness Application Form EZ

Who Can Use Form EZ?

  • Borrowers can use the form only if they are able to check one of the following three boxes:
    • Option 1: Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time it filed its PPP loan application and it did not include any employee salaries in the computation of its loan amount when it filed its borrower application form.
    • Option 2: Borrower meets the following two requirements:
      • Borrower did not reduce the annual salary or hourly wages of any employee by more than 25% during the covered period (“CP”) compared to the reference period (January 1, 2020 – March 31, 2020); AND
      • The borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the CP. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020.) Also ignore reductions in an employee’s hours that the borrower offered to restore and the employee refused.
    • Option 3: Borrower meets the following two requirements:
      • Borrower did not reduce the annual salary or hourly wages of any employee by more than 25% during the CP compared to the reference period (January 1, 2020 – March 31, 2020); AND
      • Borrower was unable to operate during the CP at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by HHS, CDC or OSHA, relating related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

Presentation of Form EZ

  • The form involves a simplified calculation that adds the payroll and non-payroll costs paid or incurred during the CP, and then applies two limits on such amount: (i) the PPP loan amount and (ii) the 60% payroll cost requirement, e., that payroll costs must constitute at least 60% of the loan forgiveness amount.
  • The form eliminates the headcount and wage reduction calculations because not having either one of them is a precondition to using the form, as noted above.
  • The form includes a borrower certification regarding the lack of headcount or wage reductions.

Required Documentation

The instructions to Form EZ lay out the required documentation to be submitted with, and also maintained by, the borrower.

  • The following documentation is required to be submitted to the lender:
    • Payroll –
      • Documentation verifying eligible cash compensation and non-cash benefit payments from the CP or APCP – including tax filings and/or third-party payroll service provider reports for payroll costs and payment receipts, cancelled checks and/or account statements for health insurance and retirement plan contributions
      • If a borrower selected Option 2 above, documentation supporting the average number of FTE employees on payroll on January 1, 2020 and the end of the covered period (since the certification requires that there was no reduction, we presume lenders will want to see support for the entirety of the period in between, as well, and recommend that borrowers are prepared to provide this)
    • Nonpayroll – it does not appear that there were any changes to the requested documentation from the initial loan forgiveness application
  • The following documentation is required to be maintained, but is not required to be submitted. Please note that the lenders may require this information at their discretion:
    • Documentation supporting certification that annual salaries or hourly wages were not reduced by more than 25% during the CP or APCP relative to January 1, 2020 – March 31, 2020. Employees must be separately listed and it must show amounts paid to each employee during both periods.
    • Documentation regarding any employee job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.
    • Documentation supporting the certification, if applicable, that the borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the CP (other than any reductions that arose from an inability to rehire individuals who were employees on February 15, 2020, if the borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020). This documentation must include payroll records that separately list each employee and show the amounts paid to each employee between January 1, 2020 and the end of the CP.
    • Documentation supporting the certification, if applicable, that the borrower was unable to operate between February 15, 2020 and the end of the CP at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. This documentation must include copies of the applicable requirements for each borrower location and relevant borrower financial records.

Revised PPP Loan Forgiveness Application

Calculation Form

  • Allows the borrower to select its enter the CP – either 8 weeks or 24 weeks.
    • For loans received on or after June 5, 2020, the instructions make it clear that a 24-week CP is required.
    • The PPP application and instructions also retain the alternative payroll covered period (“APCP”) as an option for borrowers regardless of the time of their CP, as long as they have either bi-weekly or more frequent payroll cycles.
  • The formula in the calculation remains the same form the previous application, except they modified line 10 to reflect the 60% threshold adopted in the PPP Flexibility Act.

Schedule A and FTE Reductions

  • Compensation to owners (i.e., owner-employees, self-employed individuals, and general partners) – borrowers are limited on forgiveness based on their selected CP, including all cash compensation and other payroll costs (insurance premiums, retirement contributions and state and local taxes), in the following manner:
    • 24-week CP: lesser of 2.5 months’ worth of their 2019 compensation (subject to $100k cap) or $20,833
    • 8-week CP: lesser of 8/52 worth of 2019 compensation (subject to $100k cap) or $15,385 (i.e., no change from prior PPP Application)
  • The PPP Application now provides three different options for borrowers to avoid having to complete the daunting FTE reduction calculation (though the instructions still require borrowers to compute and to keep the supporting schedules):
    • No reduction in employees or average paid hours: if a borrower has not reduced the number of employees or average paid hours between January 1, 2020 and the end of the CP.
    • FTE Reduction Safe Harbor 1: if a borrower was unable to operate between February 15, 2020 and the end of the CP at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by HHS, CDC, or OSHA guidelines related to the maintenance of standards for sanitation, social distancing or any other worker/customer safety requirement related to COVID-19.
      • In order to claim this safe harbor, the instructions require that borrowers maintain in its files documentation that supports this certification, including copies of the applicable requirements for each borrower location and relevant financial records.
      • Borrowers must also sign an additional certification surrounding this selection, if made.
    • FTE Reduction Safe Harbor 2: if a borrower can meet the standard of a 5-step safe harbor calculation found on the PPP Schedule A Worksheet.
      • There was one update to this calculation from the previous version – Step 4 now requires a borrower to “enter the borrower’s total FTE as of the earlier of December 31, 2020, and the date this application is submitted” – presumably, this means that a borrower claiming this safe harbor can file after the end of its CP and before December 31, 2020 if its FTE levels have been restored by the date of its application.
      • In order to claim this safe harbor, the instructions require that a borrowers maintain documentation supporting the FTE information claimed in the 5 steps.
    • Curiously, regardless of whether or not one of the safe harbor options apply, the PPP Application still requires that borrowers submit documentation showing the average weekly number of FTEs for the chosen reference period (either February 15, 2019 – June 30, 2019, January 1, 2020 – February 29, 2020 or, if seasonal, any consecutive 12-week period between May 1, 2019 and September 30, 2019).

Overall, the PPP Application and PPP EZ Application are borrower-friendly in terms of the amount of forgiveness that will be available to borrowers.  There is still uncertainty about the threshold and information required of borrowers seeking to avail themselves of the FTE safe harbor pertaining to their inability to operate at the same levels as February 15, 2020. How will lenders and borrowers ascertain the reasonableness of this certification? What ”financial information” will be required to support the claim? Can a borrower claim the safe harbor if the COVID-19 restrictions have been lifted but business operations have still not recovered to the same levels? Does this certification apply through the date of application, or does it apply through December 31, 2020? This safe harbor option offered by the updated application process is bound to be one of the most widely-discussed issues in the coming weeks.

6/18 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their June 18 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.

Tweet/Garot Mechanical, Inc. Partners to Provide Acute Care Solution for COVID-19 Patients

MCAA members are innovating and creating new ways to help minimize the impact of COVID-19. Tweet/Garot Mechanical, Inc. of De Pere, Wisconsin, is just one example. In partnership with the teams at HGA, Boldt, Faith Technologies and IMEG, they provided an acute care solution in under two weeks.

An Innovative Project Approach

With the majority of the team working remotely, Tweet/Garot and their partners had to be innovative in their collaboration. The project kicked off with a virtual big room where component teams worked through design constraints and constructability challenges while considering “off-the-shelf” approaches to the project.

As a result, the project used a standard HVAC rooftop unit retrofitted to meet isolation room requirements. This one-model approach allowed component teams to start clash detection while the design continued to evolve.

Once design was complete, the manufacturing team worked with Boldt’s facility in Appleton to streamline the production process using pull-plan sessions, completing the project start to finish in less than 10 days.

Prefabricated Modular Solution Offers Flexibility, Quick Delivery

The resulting STAAT ModTM (Strategic, Temporary, Acuity-Adaptable Treatment) prefabricated modular solution can be deployed for use as either stand-alone hospitals or inside convention centers, arenas and temporary structures. It is one of the only temporary care units that can be deployed quickly to provide hospital-level care to patients suffering from coronavirus.

Multiple independent modules can connect to each other or to a hospital building with segregated spaces for patient care and healthcare workers. The units allow additional capacity to be added, or re-deployed to sites where the need is greater.

A Variety of Configurations Suit Multiple Applications

The STAAT ModTM solution can be configured as:

  • A two-room isolation unit designed for use in an interior shelter, such as a convention center. This unit can be rapidly deployed.
  • An eight-bed unit of critical care isolation rooms consisting of four two-bed modules designed to connect to a hospital or existing structure.
  • A 12-bed unit of negative-pressure open-bays consisting of four three-bed open bay modules connected to a central support spine. An infinite number of additional self-sustaining tiers can be added.

Enhanced Features Add Safety, Reduce Costs

The STAAT ModTM solution was created and tested with a variety of enhanced features designed to ensure safety, allow for rapid construction and reduce costs. Virtual Reality (VR) simulation exercises allowed experts including critical care nurses trained in COVID-19 protocols, a hospital environmental specialist in infection control, and lean process engineers to test the system during design so that the solution could be constructed and delivered rapidly.

Patients and healthcare workers benefit from:

  • Hospital-level clinical care that ensures infection control, access to life-saving technology and isolation rooms if needed for extended periods of time.
  • Safety provisions including standardized design, centrally located supplies, and segregated staff workspaces.
  • The knowledge that they are providing care that meets CDC guidelines.

Contractors are able to:

  • Deliver jobs quickly and with a consistent level of quality. At the same time, contractors are able to better ensure worker safety in the controlled environment of their fabrication shops.
  • Deliver cost savings over conventional construction.

Tweet/Garot gained valuable takeaways from the collaborative project. Leadership and trust were maintained among all partners, allowing the design and construction teams to successfully achieve their goals and generate a feedback loop for quick decision-making. Real-time updates from the constant daily collaboration helped address constraints, and ultimately eliminated waste.

This innovative joint effort is helping to pave the way for the healthcare construction market while at the same time minimizing the impact on the community. We’re all in this together.

Withum COVID-19 Bill Update – 6/18/2020

Main Street Lending Program (“MSLP”):  The MSLP was first introduced back in April and there was a lot of initial press around the program as an alternative to the PPP for larger companies. Actually rolling it out to the public, however, became a slow and arduous project. The program went through several changes and enhancements to make it more accessible to both the middle and upper-middle markets. On June 17th it was announced that the loan portal was open to lenders. This program, much like the PPP, will be administered through banks/lenders rather than through the SBA.  

The MSLP is not yet available for potential borrowers to obtain loans, but now that it is open to lenders, we suspect it will open up to borrowers shortly. Here is a link to FAQs that are helpful as this program continues to evolve. 

Below are some highlights of the MSLP:

  • These loan products are NOT forgivable and do require security (assets, personal guarantee, etc.).
  • Borrower Eligibility:
    • Must have 15,000 or fewer employees OR less than $5 billion of revenue in 2019.
    • Must not be an ineligible business and must be a US-based business established prior to March 13, 2020.
    • Must not have received support pursuant to section 4003(b)(1)-(3) of the CARES Act.  This is the “Mid-Sized Lending Program,” not the PPP.  Thus, borrowers can obtain both a PPP loan and a MSLP loan.
  • There are three different loan facilities:
    • MSNLF:  Loan sizes from $250,000 to $35M and the loan cannot exceed 4X the borrower’s 2019 EBITDA when added together with existing and undrawn debt. The loan cannot be subordinate to existing debt of the borrower.  It is a 4-year facility, with principal and interest payments deferred for 1 year.  Interest is LIBOR+ 300 basis points.  The loan will have a 5 year term.  For more information on the terms, click here.
    • MSPLF: Loan sizes from $250,000 to $50M and the loan cannot exceed 6X the borrower’s 2019 EBITDA when added together with existing and undrawn debt.  The loan must be senior or pari passu with any other existing debt facilities and can be used to pay down existing facilities.  It is a 4-year facility, with principal and interest payments deferred for 1 year.  Interest is LIBOR+ 300 basis points.  For more information on the terms, click here.
    • MSELF: Borrowers can use this facility to refinance or upsize existing debt. This is a 4-year term loan ranging in sizes from $10 million to $300 million. The maximum loan amount cannot exceed (i) 35% of the Eligible Borrower’s existing outstanding and undrawn available debt or (ii) when added to the Eligible Borrower’s existing outstanding and undrawn available debt, 6X the Eligible Borrower’s adjusted 2019 EBITDA. The loan must be senior to or pari passu with existing debt facilities. Principal and interest payments are deferred for 1 year.  Interest is LIBOR+ 300 basis points.  For more information on the terms, click here.

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 qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act).
  • 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.

William E. Walter Summer Intern Receives MCAA Internship Grant

William E. Walter Inc. Mechanical Contractors (William E. Walter) presented Alex Vernon-Venzuela Peter with an MCAA Internship Grant at the start of his internship. The grant, which is funded by the John R. Gentille Foundation, will help subsidize his expenses while he gains valuable work experience this summer.

Alex is a junior at Ferris State University, where he studies HVAC/R Engineering Technology and Energy Management.

William E. Walter chose to honor their commitment to Alex’s 4-month, 40 hours a week internship in spite of COVID-19. “Even in these challenging times it is important that we continue to support the growth and knowledge of future employees entering into the industry,” said Bruce Wenzlick, the company’s Director of Construction Services.

This is Alex’s first year as an intern with William E. Walter. His duties are focused on estimating and project management. He is assisting with things like quoting new jobs and submittals, change orders, schedules and material tracking.

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!

Withum COVID-19 Bill Update – 6/17/2020

The SBA released yet another Interim Final Ruling which provides for a variety of administrative updates/corrections, however there are a few notable clarifications as follows:

  1. The SBA confirms that the maximum forgivable salary for non-owner employees during a 24 week period is in fact $46,154 per FTE, exclusive of health insurance, retirement benefits and state-level employment taxes. For “Owner Employees”, that amount is inclusive of health insurance, retirement benefits and state-level employment taxes.
  2. For self-employed individuals (i.e., Schedule C filers), the maximum forgivable amount is $20,833, a welcome increase over prior guidance which had capped it at $15k. If you are a sole proprietor without employees, 100% forgiveness of your loan is a virtual certainty.  
  3. The loan forgiveness amount for sole proprietors will be completely tax free. The same result will obtain for partners in partnerships who account for their allocated portion of the PPP loan as a distribution of profit (rather than guaranteed payment) because no deduction will be disallowed and the loan forgiveness amount is not includible in income.

EIDL Announcement: The EIDL program (described below) is accepting applications again.  Many businesses have struggled to obtain this loan, largely because the SBA was inundated with applications.  Now it appears funds are available and they have caught up. A reminder that you can have both an EIDL and PPP at the same time but both cannot be used for the same purposes.

Notice – Now Accepting New Applications for Economic Injury Disaster Loans and Advance: On June 15, SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications from all eligible small businesses and U.S. agricultural businesses. To learn more about eligibility and apply, click here.

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 qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act).
  • 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.

Webinar #21: COVID-19 Cleaning & Disinfecting Tools – Raffi Elchemmas

Milwaukee Tool leads a health & safety conversation on tool cleaning and disinfecting for your tools to help prevent the spread of COVID-19. This presentation covers tool sharing protocols, length of virus stability, EPAs List N, and how to properly disinfect tools, batteries, and gear. Raffi Elchemmas, AEP, CHST, is a subject matter expert in construction health & safety. He is an authorized OSHA Outreach Trainer with board certification in professional ergonomics.

Additional Resources:

This webinar was recorded Tuesday, June 16, 2020

Discover the Latest from Harris Products Group and Galloup Company in MCAA’s Virtual Trade Show

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:

Harris Products Group

Harris Products Group
Steelworker® Outfit contains all the major components needed for cutting, welding, brazing and heating using all fuel gases. As supplied, cut up to a 1″ plate and weld up to a 1⁄8″plate. Add larger tips and cut 5” plate and weld 1/2” plate.

Learn More


Galloup Company
Galloup is a premier industrial distributor of pipe, valves and fittings, dedicated to service and support. Serving Michigan, Indiana and Ohio with nine facilities, including two distribution centers.

Learn More

Need Something Else?

Find many more smart solutions in MCAA’s Virtual Trade Show!

Visit the Virtual Trade Show

Speaking of Smart Solutions

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!

VISIT SMART SOLUTIONS

6/15 Alston & Bird Coronavirus Flash Update

Alston & Bird have released their June 15 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 Interns Get Project Experience on Their College Campus

Murphy Company interns Jacob Reed and Morgan Hanley have been onsite project engineering interns for the University of Missouri-Columbia’s NextGen Precision Health Institute. The opportunity has given them a first-hand look at what it takes to build a job on their college campus. 

About the Project

The company continues its work on the facility which supports a systemwide precision health initiative aimed at harnessing and supporting the research activities of its four universities and health system. The building will include lab space for current and new faculty, graduate students, clinicians and have collaborative spaces for work with industry partners.

The facility is the largest single project that the University of Missouri has ever undertaken. The project consists of a new 265,000 sq. ft. six story facility.

The Murphy Company team, in collaboration with their general contractor and trade partners, was hired on in a design-assist capacity completed the following extensive BIM and fabrication on this past year:

  • Identified and corrected 1,134 BIM clashes prior to installation
  • Fabricated 121,000 lbs. of ductwork and 65,000 lbs. of mechanical piping and racks
  • Installed the following:
    • 7,600 Linear Feet (LF) of underground piping
    • 22,500 MEP Trimble points based on BIM
    • 41,700 LF of above ground plumbing and piping
    • 3,4000 of LF of reverse osmosis (RO) piping
    • 21,640 LF of copper process piping

Construction on the institute is expected to be completed in October 2021.

Both Jacob Reed and Morgan Hanley began their internships in Murphy Company’s St. Louis office this past spring semester.  

About Jacob

Jacob is entering his senior year at the University of Missouri-Columbia, studying Mechanical Engineering. In the spring working 20-hour week, Jacob was able to see the project manager role in action by attending coordination meetings, daily site walks and reviewing construction drawings making him more familiar with the project layout. Since the spring Jacob has transition to a full-time intern this summer.

“Since I have transitioned to full-time for the summer, I feel that I am gaining valuable real-world experience without too much of an internship feel. My responsibilities now include reviewing submittals, tracking productivity, and the commissioning process of equipment. I have been able to soak in as much information as possible, ask plenty of questions about topics I did not fully understand, and have real responsibilities that add value to the work being completed here. I believe it is the perfect balance that is allowing me to apply my skills and develop new ones.”

Jacob looks forward to the rest of his summer internship and continue to learn from Murphy employees the importance of coordination, communication, and critical problem solving.

“I have now seen multiple times how project managers are able to take a problem in stride, communicate with co-workers to create a solution, and implement that solution in a timely manner. I am also looking forward to watching further completion of the NextGen Precision Health Institute. I find it very exciting that I get to see firsthand the construction of a multi-million-dollar research institute at my college.”

About Morgan

Morgan Hanley is a Junior at the University of Missouri-Columbia studying chemical engineering. In the spring Morgan was on-site at the NextGen facility and this summer is currently working in Murphy Company’s engineering department.

“I’ve really enjoyed my time so far with Murphy as it has allowed me to apply what I have learned in my coursework to practical, real-world scenarios. I have enjoyed being able to see two pieces of a bigger puzzle at work. Being on site of NextGen and then coming to the Engineering department has been really interesting because it has closed the loop between the drawings and plans I worked with at Mizzou to how those intricate details, sizings, and selections are determined during the design phase. It has been fascinating to observe the complementary aspects of both locations, and I am excited to learn even more during the rest of the summer.”

Start Your Search for Top Talent Today

Find student chapter members like Derrick by visiting MCAAGreatFutures.org, where members have 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.

Help MCAA Tailor Career Programming to Support Your Hiring Needs

MCAA connects students with MCAA members through networking and employment opportunities that help to cultivate the next generation of industry leaders.

The MCAA Career Development Committee is exploring new ways to make these connections with virtual networking and resources in light of the cancellation of the MCAA GreatFutures Forum due to COVID-19.

Please help to ensure that this programming supports your company’s needs by letting us know your company’s hiring plans for the coming year.

Take the Survey

Please contact Megan Walsh if you have questions about the GreatFutures program or our student activities and resources.

Withum COVID-19 Bill Update – 6/11/2020

Accounting for the PPP Loan: A question that Withum has consistently received is: When do we “write off” the PPP loan? This is an important question for borrowers who may have audited financial statements, where the presence of debt can have an impact on the company’s ability to borrow or meet financial covenants. Withum’s view thus far has been that the loan should remain on the balance sheet until such time that the bank has officially forgiven it. The technical accounting guidance would be to view forgiveness as a “gain contingency”, an event that is not fully within the control of the company and not certain to occur, therefore the gain (write off of the loan and related interest) should not be recognized until such time that forgiveness has actually been confirmed.   

The AICPA recently released a  Technical Question and Answer (TQA) on the matter,  while the TQA does indicate that gain contingency guidance is acceptable, it also opens the door to an alternate conclusion (see the link above and excerpt below). This is meaningful because the AICPA and the SEC indicates here that a borrower “may” be permitted to view the loan as a government grant, and therefore you would write it off (into other income on the income statement) as you use the proceeds from the loan based on your best estimate of what will be forgiven. This creates a very different result than the gain contingency guidance above. There is not yet authoritative guidance on this issue,  however this TQA is a clear indication that borrowers may have multiple options available to account for this loan. 

TQA 3200.18: â€œHow should a nongovernmental entity account for a forgivable loan received under the Small Business Administration Paycheck Protection Program (PPP)?” 

Answer: “Given the unique nature of the PPP, questions have arisen relating to how a borrower under the program should account for the arrangement. Although the legal form of the PPP loan is debt, some believe that the loan is, in substance, a government grant.” In addition, the Staff of the SEC’s Office of the Chief Accountant has indicated that they “would not object to an SEC registrant accounting for a PPP loan under FASB Accounting Standards Codification (ASC) 470, Debt, or as a government grant by analogy to International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance.”

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 qualified sick/family leave legislation (FFCRA, passed prior to the CAREs Act).
  • 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.

Webinar #20: Virtual Communication Skills – Mark Matteson

Now more than ever, with apps and software connecting employees worldwide, the need for virtual communication skills is crucial. Video calls and virtual meetings are the new “normal” and likely take up most of your day. But are you getting the most out of your meetings? Are you getting distracted? Have you dusted off your nonverbal communication skills? Join us for some basics on effective virtual communication – getting started, some do’s and don’ts, and helpful tools. As we’ve all adjusted to this new world, virtual meetings have proven to be effective. Speaker and author Mark Matteson gives an interactive and tailored presentation, just for MCAA members.

Additional Resources:

This webinar was recorded Thursday, June 11, 2020