In this case, according to the agency, companies that qualified for the cancellation of the PPP loan by claiming that the funds had been spent on eligible costs – such as indirect labor, rent or utilities – were also reimbursed through FHWA grants. Since two federally funded programs paid the same costs twice, a credit is owed to one or the other, they say. Businesses have the option of reducing or applying a credit at the corporate overhead rate or choosing to repay the loan.
Engineers say the move has hit small businesses the hardest, leaving them in perilous months before their services are potentially needed to begin engineering work on projects the bipartisan infrastructure bill would fund. The House is expected to vote by September 27 on legislation that includes $ 550 billion in new spending and represents many potential new federal contracts.
Congress is aware and has attempted to change the way the law is applied. House Small Business held the related hearing in March, and a provision in the infrastructure bill passed by the House included language to limit damage to engineering firms by requiring them to only credit equal amounts. federal dollars included in contractual payments for labor during the loan period covered in 2020.
But this bill was crushed in favor of the Senate version. Senators Tammy Duckworth, D-Ill., And Mike Braun, R-Ind., Tried unsuccessfully to attach an amendment that would prevent the requirement from applying to canceled PPP loans. But with their amendment not receiving a vote, the current implementation stands.
Greenleaf wonders why engineers will have to repay loans when others won’t, drawing a comparison with restaurants that got a loan despite being shut down for three months.