What the Paycheck Protection Program Means for Contractors

The Paycheck Protection Program is an initiative created by Congress to address the financial impact of the coronavirus pandemic on small businesses in the U.S. A recent article for Construction Dive takes a look at the program from the perspective of contractors in order to help clarify what it means for them.

For many organizations, including contractors, there has been much uncertainty surrounding the program because it was created quickly and new guidance is being released weekly. Many contractors have been hesitant to apply for the program out of fear of the severe penalties that come with any violations. The author quotes extensively from Mana Lombardo, a lawyer with Crowell & Moring, who makes the following suggestions for contractors seeking to mitigate the risk of participating in the PPP:

1. Be sure that your organization fits within the size requirements of the PPP.
2. Ensure that any statements or certifications you make are entirely accurate.
3. Develop very thorough documentation of your organization’s eligibility for the program.
4. Thoroughly document how your organization uses any PPP funds you receive.

For further details, read the article in full at Construction Dive.