Share this on FacebookApril 23rd, 2020 | Published by NEW Construction Alliance
Late Thursday, the United States House approved $310 billion infusion for the Small Business Administration’s (SBA)Paycheck Protection Program or PPP. The president is expected to sign the bill tonight.
This comes just five days after the initial $349 billion in SBA loan money ran out.
But it wasn’t all sunshine and rainbows on the House floor as they debated the bill. According to Fox News, each side accused the other of politicizing the bill. Rep. Chip Roy (R-TX) was among the members critical that the spending bill was worked out primarily by leadership as the majority of members were on a monthlong recess.
"Congress must convene not just today but every day until America's back on track," Roy stated during a floor speech, where he added that the current process is "half-assed legislating." The presiding officer of the House reprimanded him for using "vulgarity" on the floor.
According to Construction Dive, the construction industry received more of that original money than any other industry. It received 177,905 loan approvals totaling just shy of $45 billion.
The original funding ran out in just 13 days, but Congress has been working at uncharacteristic lightning speed due to the financial severity the nation-wide shutdowns have caused.
Kristen Swearingen, vice president of legislative and political affairs for Associated Builders and Contractors (ABC), believes that many small contracting firms secured loans, pointing out that construction’s status as “essential” likely helped that along. If this second wave of funding is passed by the House and signed into law by the president, those firms that missed out on the initial offering will have a second chance at obtaining these needed funds.
Construction Dive also reminds those seeking PPP loans, “It’s also important to note that getting approved for a PPP may mean a small business won’t qualify for payroll tax deferral from the Coronavirus Aid, Relief, and Economic Security (CARES) Act.”
You can read the rest of the Fox News story here and the Construction Dive here.