Archives: News Items

Would a Zero Injury Safety Award from NMAPC Benefit Your Company?

The National Maintenance Agreements Policy Committee (NMAPC) is now accepting online applications for its 21st Annual Zero Injury Safety Awards® (ZISA®), which will recognize zero-injury achievements in calendar year 2020. ZISA® celebrates the efforts of industrial business owners/clients, union contractors and building trades in achieving world-class safety performance on their projects. To be eligible, projects must be completed under the terms of the National Maintenance Agreement.

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Highlighting NEI Instructor Woody Woodall

MCAA’s National Education Initiative (NEI) Seminars bring our best programs to your local association or your company thanks to instructors like Woody Woodall, the managing principal of Customer Focused Solutions, Inc.

Woody has had a long and distinguished career in the mechanical contracting industry, where he has seen and experienced the cutting edge processes that truly can make service groups the best in class in their areas.

He started as a Steamfitter with Local 602 in the Washington, D.C. area. After completing his apprenticeship, he went on to become an Instructor for the Union Apprentice Program in Washington, D.C.

Through his passion for teaching, he has since become an integral part of the education offerings of the Mechanical Service Contractors Association (MSCA). He was instrumental in helping develop many of their educational offerings, including the HVAC 101 program and the Sales Institute.

Woody has received many accolades throughout his career including Certified Instructor through the United Association and the D.S. O’Brien Award of Excellence for outstanding contributions to the industry.

His Fundamentals of Service Series (FOS) Seminars focus on the building blocks of what makes a healthy and successful service company, with an emphasis on customer service, team-building and effective communication.

Like our other NEI instructors, Woody brings his unique blend of industry and teaching experience to virtual courses, a new NEI offering. Providing top notch, accessible education for everyone in your organization is what the MCAA’s NEI is all about! Even during the COVID-19 era. Visit the NEI website for more information about these seminars and a full list of the NEI courses available to MCAA members.

Paul Christensen Named to In Business Magazine 40 Under 40

Madison Association of Plumbing Contractors (MAPC) Executive Director Julie Walsh announced that MAPC Board President Paul Christensen was named a member of In Business magazine’s 40 Under 40 Class of 2021. Christensen is Owner/CEO/Project Executive of 1901 Inc., an MCAA member company.

“Annually, the 40 Under 40 is a celebration of some of the brightest and most driven young professionals within the Greater Madison business community, and we are thrilled to recognize our 21st class here in 2021 as they will now join a group of over 800 distinguished 40 Under 40 alumni,” said In Business magazine Publisher Jon Konarske. “This is yet another group that has already made a huge impact—both in their careers and within the community, and there is no doubt that they will be helping to lead the way as we slowly work our way out of the pandemic.”

Christensen began working for 1901 Inc. when he was in high school before completing a five-year steamfitter apprenticeship as a member of Steamfitters Local 601. He went on to become a foreman, advanced to project manager in 2010, and purchased the company in 2011.

In addition to leading the MAPC Board, Christensen is the President of the Mechanical Contractors Association of Wisconsin (MCAW) and the Treasurer of the National Certified Pipe Welding Bureau’s Wisconsin Chapter. He continues to give to the next generation of steamfitters by serving on the Madison Area Steamfitters Joint Apprenticeship Committee and Wisconsin’s Steamfitters Apprenticeship Advisory Committee.

Christensen is highly involved in the Madison community through the annual Kids Building Wisconsin event, and he is currently the co-chair of the American Heart Association’s Heart Walk.

“Paul is a leader in the mechanical and plumbing industries in Madison and throughout Wisconsin,” said Walsh. “We are thrilled to see him honored by In Business and join so many distinguished individuals with this achievement.”

Selected from over 100 applications, the members of the 21st annual 40 Under 40 will be recognized in the March 2021 issue of In Business magazine and highlighted in a series of video interviews that month.

To learn more about Christensen or MAPC, contact Julie Walsh.

With Daikin, Olson Plumbing and Heating Stands Up COVID-19 Care Facility in Record Time

Olson Plumbing and Heating partnered with Daikin Applied to retrofit a Colorado medical center to house patients recovering from COVID-19, moving from planning to project completion in just 30 days. In response to the rapid spread of the pandemic, St. Mary-Corwin Medical Center in Pueblo, CO, was redesigned to provide post-COVID-19, non-critical, isolated care, freeing up intensive care isolation units in other facilities. Daikin is a sponsor of MCAA’s 2021 Virtual Education Conference.

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Looking for More Smart Solutions?

Visit the Smart Solutions Case Studies area of our website! You’ll see how other mechanical contractors found their win-win with productivity-enhancing and cost-saving applications from members of MCAA’s Manufacturer/Supplier Council.

Plus, you’ll find tips and ideas on other ways you and your company can save money and enhance your productivity.

VISIT SMART SOLUTIONS

Reliance Worldwide Corporation’s John Guest Brand Celebrates 60 Years of Innovative Push-fit Technology and Leadership

Reliance Worldwide Corporation (RWC), an MCAA member, is pleased to announce the 60th anniversary of its John Guest brand. The brand is celebrating a long history of delivering advanced plumbing technology, quality products and innovative solutions to a diverse range of industries. Over the years, John Guest’s push-fit plumbing products have paved the way for better drink dispense, water filtration, air and pneumatics, telecoms, automotive and OEM solutions.

“With more than 1 billion fittings installed and in use worldwide, John Guest is a leader in the plastic push-to-connect category,” said Ted Antony, fluid tech marketing specialist at RWC. “OEMs choose us because we’re known for providing reliable products, offering strong process controls, meticulous testing and adherence to required approvals.”

The company’s founder, John Guest, was determined to run a company where quality of product and excellence of service was ingrained in its culture. From the company’s start in the 1960s, he encouraged a strong spirit of innovation, which led to the invention of the first push-fit connection in the 1970s by Guest himself. This technology, later known as Speedfit, made connections quicker, easier and more reliable than ever. Since then, the push-fit fittings have been developed for a wide range of applications.

To continue Guest’s legacy of producing reliable products and excellent service, the company maintains strict control over its entire engineering and manufacturing process, ensuring only products of the highest quality are produced. The company manages the product’s entire journey from its initial concept, to tool design and construction, to product manufacturing and finally assembly and testing.

“All of our fittings share precision engineering, a feature for which John Guest is renowned,” Antony said. “Whether you’re drinking a glass of water, getting your teeth cleaned at the dentist or getting your car washed, you’ve probably already experienced our products.”

Learn more about the brand at johnguestusa.com.

Find the Latest from Anvil International and Lochinvar, LLC in MCAA’s Virtual Trade Show

MCAA’s Virtual Trade Show connects our contractor members with the members of MCAA’s Manufacturer/Supplier Council.

Participating companies highlight and link to new products, product lines, services, solutions or web pages of particular interest. Here are just a few of the recent additions:

Anvil International
Anvil International now offers a free Revit Plug-in, called Anvil Tools™, which allows designers to easily incorporate Anvil® and Gruvlok® branded products into any Revit Project. By using our customized plug-in, designers can save time by automating and enhancing mechanical workflows; design with smart pipe routing and fitting families; and create simplified tagging, scheduling, and spool sheet creation. We want to help your team build better and smarter. All BIM and CAD content is available online, click on the Learn More button below.

Learn More

Lochinvar, LLC
ARMOR models now offer up to 99% thermal efficiency, a 10:1 turndown ratio and direct vent flexibility up to 150 feet in floor mount, wall mount, indoor, outdoor and indoor/outdoor convertible options.

Learn More

Need Something Else?

Find many more smart solutions in MCAA’s Virtual Trade Show!

Visit the Virtual Trade Show

Speaking of Smart Solutions

Visit the Smart Solutions Case Studies area of our website to learn how other mechanical contractors found their win-win with cost-saving and productivity-enhancing applications from members of MCAA’s Manufacturer/Supplier Council.

This section of our website also includes tips and ideas to help your company save money and enhance your productivity. Don’t miss it!

VISIT SMART SOLUTIONS

Advanced Service Supervisor Virtual Training Provides the High-level Skills Needed to Boost Performance

MSCA Advanced Service Supervisors Virtual Training
May 10, 11, 17 and 24
1:00 p.m. – 3:00 p.m.  EDT

MSCA’s Advanced Service Supervisors Training provides service supervisors with the high-level skills they need to improve their job performance. This new advanced program will focus on crucial management skills to ensure top level execution. Using proven methods, this program will focus on leadership skills, productivity, attitude adjustment, coaching, planning, communication, and motivational techniques, all of which will give the field supervisor an edge and the confidence to deal with the workplace challenges of today. This interactive virtual program will be held May 10, 11, 17 and 24 from 1:00 – 3:00 p.m.  EDT.

Register

MSCA Sales Masters Program Takes Careers to the Next Level

An integral part of MSCA’s Sales Institute, the Sales Masters program is meticulously tailored for intermediate to advanced HVACR and plumbing sales professionals looking to take their careers to the next level. The intensive nine-day program will provide industry-specific training not found in any other sales program. Individualized feedback and step-by-step involvement of the attendee’s sales manager/leader will ensure that attendees reach or exceed all personal expectations and goals.

The Sales Masters program is broken down into two weeks. Week 1 emphasizes the specifics of HVACR and plumbing maintenance and project sales through presentations, team activities, role plays and individualized mentoring and is taught by industry experts. Week 2 is taught by leading professors at the Bauer College of Business at the University of Houston and provides attendees with the skills and expertise required to perform at the pinnacle of their selling potential, and develop long-lasting, profitable and far-ranging customer relationships.

Sales Masters Week 1:
October 3 – 7, 2021, The Hyatt Lodge, Chicago, IL

Sales Masters Week 2:
November 7 – 12, 2021, University of Houston, Houston, TX

Brochure

Understanding the Different Generations Can be Tricky. Register for MCAA’s Virtual Education Conference, March 22–25, to Learn How to Work Better with Every Generation.

As part of our Virtual Education Conference (VEC) Essential Learning for Unconventional Times, you will enjoy learning from Founder and CEO of JB Training Solutions, Brad Karsh. 

For Millennials and Generation Z, understanding your Gen X or Boomer manager can be a tricky proposition. From tackling a first-time project, to asking for feedback, to inquiring about advancement opportunities, there is no syllabus to guide you through these tough topics. As a young professional, you might be comfortable with structure and collaboration but not all generations are ready to integrate those changes in the workplace. 

Brad’s session, “OK Boomer: Managing Up in a Multigenerational World” will address the mantra that no generation is better or worse – every generation is just different. The group discovers perceptions of all the generations, including their own, to truly understand what has shaped them. They will recognize what makes their managers tick, and learn how they typically like to work. Importantly, we discuss how Millennials and Generation Z can dispel perceived entitlement, embrace feedback, understand a manager’s style, and display initiative to get ahead. Brad is the author of three business books, including the critically acclaimed Manager 3.0: A Millennial’s Guide to Rewriting the Rules of Management.  

Register today and join your MCAA friends and colleagues online at MCAA’s first Virtual Education Conference (VEC) Essential Learning for Unconventional Times, March 22 – 25, 2021. 

Registration is available for individuals and for companies (up to 10 registrants per company registration). Questions can be directed to eventregistration@mcaa.org. We look forward to seeing you in March! 

Thank you, EVAPCO for sponsoring this session and your continued support of MCAA. 

REGISTER NOW

MCAA & Affiliates Continue Push for COVID Cost Recovery on Direct Federal Construction Contracts

MCAA’s initiative with the MCA of Maryland, the MCA of Metropolitan Washington, the MCA of New York, and the New England Mechanical Contractors Association (NEMCA) is moving ahead with contacts in the House and Senate expanding to seek an add-on proposal in either the next COVID relief measure or possibly on the infrastructure proposal that is expected soon. The proposal is relatively simple – Congress should set up a separate COVID Cost Recovery Fund on direct Federal construction contracts to pay impaired productivity and other COVID direct costs to be administered apart from the affected projects’ budgets. The rationale is that it is inequitable for the government as proprietor of the project to take the full benefit of the fixed-price award pre-COVID and then drive a hard bargain denying full equitable cost impact recovery post pandemic, while at the same time using taxpayer resources to bail out other industries outside of any contractual relationship.

MCAA was able to gain the active support of the New York Tri-State Chapter of the National Association of Minority Contractors backing our initiative with New York City Congresswoman Carolyn Maloney, who is chair of the lead committee of jurisdiction on this issue in the House Oversight and Reform Committee (OGR). NEMCA recently was instrumental in gaining the active consideration of Boston area Congressman Stephen Lynch, a high ranking member on both OGR and the Transportation and Infrastructure Committee, which shares jurisdiction on these issues. 

LETTER TO CONGRESSWOMAN MALONEY
LETTER TO CONGRESSMAN LYNCH
POSITION PAPER

Multiemployer Pension Plans May See Relief from the Butch Lewis Emergency Pension Plan Relief Act of 2021

The Democrats in the 117th Congress are pressing the Butch Lewis Emergency Pension Plan Relief Act of 2021 in two phases. The first phase, the American Rescue Plan of 2021, is moving through the reconciliation process in the House and Senate (not subject to filibuster in the Senate). It would provide funding to enable the Pension Benefit Guaranty Corporation (PBGC) to pay full benefits for plans in critical status (with a funded ratio below 40% and an active to inactive participant ratio of less than 2:3). Funding would also be provided to help critical and declining plans, and those plans that have already cut benefits (or have applications pending) under the 2014 Multiemployer Pension Reform Act (MPRA) benefit suspension procedure. 

Plans would  have until December 31, 2025 to apply for assistance. Estimates are that the amounts required to fund the program will come to some $85 billion and could extend to as many as nearly 280 plans by the expiration of the eligibility period. The payments from PBGC to eligible plans are to pay benefits for 30 years. The payments are grants – they are not loans and are not repayable. As of the end of Plan Year 2020, it is estimated that some 15 United Association (UA) plans would be eligible for PBGC payments. 

As of this writing, the Senate Parliamentarian reconciliation judgments relating to the pension proposal have not been settled, and the House passage is still pending.  All the other non-budgetary policy aspects of multiemployer pension reform – including the adoption of Composite Plans for trustees to consider – remain subject to regular order legislative procedures later in this year.  

MCAA’s Sponsor Spotlight Episode 14 Welcomes Dean Taylor, Executive Vice President Sales for Anvil and Smith-Cooper International

In the fourteenth episode of MCAA’s Sponsor Spotlight series MCAA Co-Vice President/Assistant Treasurer, Rick Gopffarth welcomes Dean Taylor, Executive Vice President Sales for Anvil and Smith-Cooper International. The Sponsor Spotlight Series is a new way for MCAA contractor members to learn more about the Manufacturer/Supplier Council (M/SC) Governing Board members, their products, their relationship with MCAA, and what being a member means to them.

Dean joined the company back in 1986 and has over 34 years of experience in the industry. Through the years, Dean has held several roles within the organization (from the ground up), working in the warehouse and inside sales before holding positions such as Warehouse Manager, Inside Sales Manager, Market Manager, and Regional Manager, continuing to work his way up to the Executive level. In his current role, Dean is responsible for global sales across all markets served, implementing and managing strategic sales plans to achieve sales goals. 

Beyond the Classroom Video Series: Showing Interest in the Industry

Ted McHugh left college with an education geared more towards a career in general contracting, with limited knowledge of the mechanical industry. However, he applied for a job at West Chester Mechanical Contractors, Inc. and quickly gained experience in various roles within the company.

Ted shares insight into the time and interest he put into researching the company and emphasizes that this is an important part of their hiring process, “When we’re hiring, we’re looking for somebody who’s interested in the company, interested in our industry and knows a little bit about it. Come into an interview and ask questions.”

A current MCAA Career Development committee member, Ted talks with passion when describing the variety of opportunities the mechanical industry offers to meet individual interests, and he is a great example of what you can achieve if you develop an interest and passion for the industry.

Need to Update Your Electrical Safety Program to Comply with NFPA 70E – 2021? MCAA Has What You Need

NFPA 70E is the industry consensus standard for electrical safety in the workplace. It is part of the National Electrical Codes, and it is revised by the National Fire Protection Association every three years. The most current version is NFPA 70E – 2021. Parts of the standard help us protect our service technicians from electrical shock and arc flash hazards. One of the provisions in the standard calls for affected employers to establish an electrical safety in the workplace program. MCAA’s Model Electrical Safety in the Workplace Program, which addresses work on mechanical equipment pushing 480 volts or less, was recently revised to make it consistent with NFPA 70E – 2021.

Meet MSC’s New Board Members

Madison Area Mechanical & Sheet Metal Contractors Association (MSC) Executive Director Julie Walsh announced that Tom Duffy will be the new MSC President. Brady Farrell will serve as Vice President, with Rob Weise as Secretary/Treasurer.

Meet the team that oversees the non-profit organization that works to promote professionalism, cost-effectiveness, safety and productivity of construction and services through education, labor relations, public relations, and government affairs.

Tom Duffy | MSC President

Regional Service Manager in Wisconsin of The Waldinger Corporation

Duffy, a graduate of the University of Wisconsin-Madison with a Bachelor of Science degree in Construction, served as the President and Owner of Commercial Air until his company merged with The Waldinger Corporation in September of 2018.  Duffy has over 30 years of experience in HVAC and air conditioning services.

Brady Farrell | MSC Vice President

President of 1901 Inc.

Farrell, also a graduate of University of Wisconsin-Madison with a Bachelor of Science degree in Mechanical Engineering, joined 1901 Inc. in 1991 as a Project Manager before being promoted to Vice President in 2002, and his current role as President in 2013.

Rob Weise | MSC Secretary/Treasurer

Vice President and Director of Operations of General Heating and Air Conditioning

Weise received his Bachelor of Science degree in Civil Engineering from University of Wisconsin-Platteville.  Prior to joining General Heating and Air Conditioning in 2013, Weise brought more than 20 years of professional experience with M.A. Mortenson Company and The Boldt Company.  He also won “Project Manager of the Year” in 2012 and was awarded InBusiness Magazine’s “40 under 40” in 2010.

To learn more about MSC, visit the association’s website or contact Julie Walsh.

MCAA, NECA and TAUC Sign Strategic Alliance Agreement to Collaborate and Advance the Construction and Maintenance Industry

On Feb. 22, the Mechanical Contractors Association of America (MCAA), the National Electrical Contractors Association (NECA), and The Association of Union Constructors (TAUC) entered into a tri-party strategic alliance agreement to collaborate on issues impacting the construction and maintenance industry on a national and regional level.

Through this alliance, MCAA, NECA, and TAUC will conduct joint meetings and share information of mutual interest relating to environmental health and safety, industrial relations, government affairs, and innovation and technology. The three organizations will develop products and practices to jointly benefit their respective memberships, increase membership awareness of industry issues, and much more.

“MCAA, NECA and TAUC have come together in a strategic alliance to better serve our members and to strengthen our organizations in an effort to help protect the unionized construction industry,” said Timothy J. Brink, MCAA CEO.

“I am excited that NECA, TAUC and MCAA are joining together in this strategic alliance, which will align our efforts to provide the safest, most innovative work to project owners,” said David Long, NECA CEO. “Through this agreement, NECA will be well-positioned to serve its members in new ways by collaborating to serve the interests of the unionized construction industry across America.”

“Union contractors understand that our industry is always strongest when we work together,” said TAUC CEO Steve Lindauer. “TAUC’s new alliance with NECA and MCAA will strengthen our respective organizations and, most importantly, help us provide even greater service to our members moving forward.”

ABOUT THE MECHANICAL CONTRACTORS ASSOCIATION OF AMERICA
The Mechanical Contractors Association of America (MCAA) serves the unique needs of approximately 2,600 firms involved in heating, air conditioning, refrigeration, plumbing, piping and mechanical service. MCAA does this by providing their members with high-quality educational materials and programs to help them attain the highest level of managerial and technical expertise. Visit www.mcaa.org for more information.

ABOUT THE NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION
NECA is the voice of the $171 billion electrical construction industry that brings power, light and communication technology to buildings and communities across the United States. NECA’s national office in Washington, D.C., and 118 local chapters advance the industry through advocacy, education, research and standards development. Go to www.necanet.org for more information.

ABOUT THE ASSOCIATION OF UNION CONSTRUCTORS
TAUC is the premier national trade association for the 21st century union construction industry.  Our member firms include union contractor companies, local union contractor associations and vendors in the industrial maintenance and construction field.  We demonstrate that union construction is the best option because it is safer and more productive and provides a higher quality and cost-competitive product. For more information, log on to www.tauc.org.

Is There A Way to Reduce Healthcare Costs, Increase Productivity and Improve the Overall Culture and Bottom Line? Register for Beverly Holcomb’s Session at MCAA’s Virtual Education Conference, March 22–25!

As part of our Virtual Education Conference (VEC) Essential Learning for Unconventional Times, you will hear from long-term health coach, Beverly Holcomb. 

What if there was a systematic way to significantly affect you and your organization’s health and vitality while reducing healthcare costs, increasing productivity and improving the overall culture and bottom line? The real ROI is investing in YOU—first! Join us for Beverly Holcomb’s session, “You Know Your Company’s ROI – What’s Your Body’s ROI?”

In this seminar, you will learn which “4 Pillars” affect virtually all areas of health: nutrition, movement, recovery, integration; and how having one or more of these areas out of balance can contribute to—or cause—most of the top diseases we face today (i.e., obesity, diabetes, high cholesterol, high blood pressure, cardiovascular disease, cancer, chronic pain, Alzheimer’s and more). 

Beverly is the Co-Founder of “The SATAURA Project,” a comprehensive online educational platform that focuses on all areas of human health and potential. She has an extensive background in the design and facilitation of Integrative Corporate Wellness Programs. She has merged her expertise and passion into the development of live and online programs for corporations; with a laser focus on the long-term health and well-being of their employees. Her programs massively improve the overall culture, community, productivity, and bottom line, with a measurable R.O.I. for the organization.  

Register today and join your MCAA friends and colleagues online at MCAA’s first Virtual Education Conference (VEC) Essential Learning for Unconventional Times, March 22 – 25, 2021. 

Registration is available for individuals and for companies (up to 10 registrants per company registration). Questions can be directed to eventregistration@mcaa.org. We look forward to seeing you in March! 

Thank you, Ferguson for sponsoring this session and your continued support of MCAA. 

REGISTER NOW

Withum COVID-19 Bill Update – 02/24/2021

National accounting firm Withum shares some thoughts on recent developments related to the PPP, PPP2, Loan Forgiveness, and Employee Retention Tax Credits.

White House Announces Changes to PPP:

Yesterday afternoon, President Biden announced changes to the PPP geared toward making the program easier to access for smaller businesses. Last night, the SBA released further guidance solidifying these changes: 

  • Starting February 24, 2021 at 9am, the SBA will establish a 14-day exclusive loan application period for businesses/not for profits with fewer than 20 employees. 
  • SBA will also enact the following changes to promote equitable access to SBA relief:
    • Allow sole proprietors, independent contractors and self-employed to receive more financial support by revising the PPP’s funding formulas for these categories
    • Eliminate restrictions for small business owners with non-fraud felony convictions and restrictions for student loan debt delinquency
    • Ensure access for non-citizen small business owners who are lawful US citizens (ITINs will be used for PPP)
  • The adjustments to the funding formula for these groups are not available at this time, neither is any information on whether these borrowers who have previously received PPP2 funding can apply for more with their lender
  • It is not clear if/how this will affect applications that are currently in processing with lenders or the SBA or whether funding will be delayed in these instances

PPP2 Update:

After re-opening for business in mid-January with new appropriations of $284 billion, the PPP has had it’s fair share of bumps along the way. Here are some updates:

  • Through February 21, the program has had 1.9 million loans approved for approximately $140 billion in loan dollars during 2021. Average loan size of approximately $73k is considerably less than the first round, as expected due to the employee count and maximum loan amount standards imposed
  • The SBA installed more than 50 validation checks to prevent fraud and misuse of program funds. An unintentional effect of this was that many otherwise eligible borrowers were being held from receiving funds due to “hold codes” not applicable to their situation. The SBA has indicated that they are working to correct this, and on February 10, 2020, issued guidance to lenders on how to bypass to allow borrowers to receive their funding. 
  • The SBA has installed a loan cap of $35,000 per employee for funding within either a PPP1 or PPP2 loan. This cap is not specified anywhere in the legislation or subsequent guidance, however they have been limiting certain loan amounts of borrowers for this through the SBA E-Tran system. We believe this would be calculated at $20,833 in wages and $14,117 of employer sponsored health insurance, retirement contribution and state and local taxes.  We are not sure how they are determining the $14,117 amount as that information is not supplied on an employee basis.
  • In last night’s release, the SBA announced they are working with their partners to improve the “digital front door” – presumably aimed at correcting some of the hold code issues previously identified. 

For a refresher on the eligibility criteria for receipt of a second draw PPP loan, please visit our article here.

Loan Forgiveness Update: 

The SBA has published the following forgiveness data through February 18, 2021:

Issued:  5.2 million loans$521 billion loan dollars
Forgiven: 1.7 million loans$152 billion loan dollars
Under review: 187k loans  $76.9 billion loan dollars 
Not yet received by the SBA: 3.3 million loans $292 billion loan dollars
Not forgiven:– not provided – $500 million loan dollars

Employee Retention Tax Credits (“ERC”):

Outside the PPP, the revamped ERC program has been the hottest topic of the new year for businesses in need of relief after the downturn has negatively impacted their revenues. The program, which carries a refundable $19,000 credit per employee for businesses who qualify for both 2020 and 2021, should be explored by ALL small businesses who have either had significant reductions in gross receipts or were fully or partially suspended due to government orders during 2020. A brief summary of each program is as follows: 

  • 2020 Opportunity: The CAA removed the requirement that businesses cannot obtain a PPP loan and claim the ERC. This means that any business that previously obtained a PPP loan can now retroactively claim the ERC for 2020 if they qualify. The test for the 2020 ERC is that the business must have suffered either (i) a full or partial suspension of its business operations due to COVID-19, or (ii) it experienced a decline in gross receipts for any quarter in 2020 by more than 50% compared to the same quarter in 2019.
  • 2021 Opportunity:  Under the CAA, businesses can now claim an ERC for the first two quarters of 2021, and the rules are less restrictive than they were in 2020. Two key changes include: (i) the maximum credit per employee is $14,000 in 2021, compared to $5,000 in 2020, and (ii) the decline in gross receipts test has been relaxed to include a decline of 20% instead of 50%. Businesses can also utilize the prior quarter to establish eligibility for the 2021 program.  This means for Q1 2021, the Q4 2020 can be used to determine the 20% decline in revenues. There are other expansions of the ERC that are favorable for businesses with employee counts between 100 and 500.
  • Note that businesses can only claim the ERC for eligible wages that were not used to support PPP loan forgiveness, and this prohibition against double dipping applies in 2020 and in 2021. 

Our team has put together some resources for small businesses to start evaluating whether they might benefit from this program. Please visit our ERC flowcharts here, or our article on the overall program here. We also invite you to view our on-demand webinar from last week here.