In a positive move for small engineering and construction companies—and those in other industries—federal agencies say forgivable loans less than $2 million under the Paycheck Protection Program are acceptable and won’t face federal audits or reviews. The Associated General Contractors of America and the American Council of Engineering Companies say the majority of PPP loans to their association members are smaller than $2 million.
Engineering and contractor groups welcomed the new guidelines—which the Treasury Dept. and Small Business Administration issued on May 13—but said other guidance is needed in implementing PPP. [See new guidance here, in FAQ #46.] The guidelines include specifics about how the loan forgiveness process will work and clarifications for firms with loans $2 million or larger.