Engineering firm executives and others told a House small business subcommittee about the negative financial impact their firms have experienced because some federal agencies are recognizing Paycheck Protection Program loans as credits under the Federal Acquisition Regulation.
Rep. Kweisi Mfume (D-Md.), who chairs the Small Business Committee's subcommittee on contracting and infrastructure, noted at a March 23 hearing that although Congress created the program to help small businesses meet payroll costs and other expenses through forgivable loans, some federal contractors “may find themselves owing the government a credit if the PPP loan has been forgiven and it was used to pay for costs covered under a government contract.”