COVID-19 UPDATE 30
U.S. SMALL BUSINESS ADMINISTRATION ISSUES ADDITIONAL GUIDANCE CONCERNING BORROWERS REQUIRED “GOOD FAITH CERTIFICATION” - SAFE HARBOR DATE EXTENDED TO MAY 18, 2020
The U.S. Small Business Administration (SBA) issue new guidance for its Paycheck Protection Program and the good faith certification by borrowers as to the necessity of the loan and "the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient." Also, SBA has extended the date to May 18, 2020 for repayment of all loans without penalty.
Tuesday night SBA issued FAQ #46 that states, “
any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.
” This is welcome news for borrowers of loans less than $2 million. Please note that those loan recipients of less than $2 million must still meet the eligibility and loan use requirements.
PPP loan recipients in the amount of $2 million and more will be subject to SBA review for program eligibility and use requirements. If SBA determines that a borrower did not make the certification in good faith, SBA will allow the loan recipient to repay the outstanding PPP loan balance and SBA will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies with respect to the certification concerning necessity of the loan request.
UTCA’s legal counsel, Florio, Perrucci, Steinhardt, Cappelli, Tipton & Taylor, have provided a memorandum discussing the SBA’s FAQ #46, which can be viewed
HERE
.
GOVERNOR MURPHY ISSUES EXECUTIVE ORDER 142 THAT RESTARTS
“NON-ESSENTIAL” CONSTRUCTION OPERATIONS AND OTHER ACTIVITIES
Governor Murphy yesterday issued Executive Order 142 that announced the Administration’s first steps to re-open sectors of New Jersey’s economy. Of importance to the construction industry is the easing of restrictions for non-essential construction activities. While most of the industry’s activities have been “essential” activities, it is welcomed news that restrictions on all construction activities have been lifted. As with “essential” construction activities, all construction work must follow the social distancing and other related safety measures for all personnel active on construction projects.
The following are other permitted activities:
- Easing restrictions on non-essential construction, subject to social distancing and mitigation protocols, will take effect at 6:00 a.m. on Monday, May 18 and includes all types of construction previously shut down via Executive Order 122.
- Curbside pick-up is permitted starting at 6:00 a.m. on Monday, May 18 for all non-essential retail establishments previously closed via Executive Order 107 and is available via both vehicle and on foot.
- Vehicle gatherings are permitted effective immediately, subject to certain social distancing requirements. This includes drive-in or drive-through events such as movie theaters, church services, and farms.
Governor Murphy’s Executive Order 142 can be viewed
HERE
.
NEW JERSEY DEPARTMENT OF TRANSPORTATION HAS REVISED ITS
HOLIDAY LANE CLOSURES FOR MEMORIAL DAY WEEKEND
The New Jersey Department of Transportation has notified UTCA that it is revising its Holiday Lane Closure Restrictions for the 2020 Memorial Day Weekend due to the reduced traffic environment because of the COVID-19 situation: Please note the following revised schedule:
- No lane closures will be permitted from 3 PM to 8 PM Friday May 22nd.
- No lane closures will be permitted from 3 PM to 8 PM Monday May 25th.
- Contracts that have summer hour lane closure schedules will remain in effect, with the COVID-19 blanket extensions and any DC-189 approvals still applicable.
If you have any questions concerning the NJDOT change in weekend lane closures, please contact George Lobman at
george@utcanj.org
.
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If anyone has questions concerning this notice, please contact us at the UTCA office 732-292-4300.
