COVID-19 Resources and Guidance for ACEC/MA Members

Congress passes CARES Act, Sends to White House

3/27/20 1:30 PM: The US House just passed the CARES Act, sending the package to the White House for the President’s signature.  

CARES Act, section by section summary

Coronavirus Supplemental Appropriations Summary 

Here's some information on the small business provisions. 

Small Business Program Overview

The new law establishes a Paycheck Protection Program to assist qualifying small businesses, nonprofits, and individuals through the Small Business Administration’s 7(a) loan program.  $349B is authorized for 7(a) lending from Feb. 15 through June 30, and SBA would fully guarantee the loans.  Loans would be available during the covered period for:

• Any business, nonprofit, veterans group, or tribal business with 500 or fewer employees, or a number set by the SBA for the relevant industry.  ACEC is seeking clarification on this point – whether SBA will implement the loan program using the traditional size standard for engineering, or something broader.
• Sole proprietors, independent contractors, and eligible self-employed workers would be eligible.

Eligible recipients could receive loans up to $10M or 250% of their average monthly payroll costs, instead of $5M, with interest rates capped during the covered period at 4%.  Loans can be used to cover eligible payroll costs -- salaries, commissions, regular paid leave, and health-care benefits -- as well as mortgage interest and utility payments. Firms would be required to make a “good faith certification” that funds will be used to retain workers, maintain payroll, and pay for rent and similar expenses.  Funds cannot be used to compensate individual employees at an annual rate above $100,000, or to pay for emergency sick or family leave under the second coronavirus response package.

Loan Forgiveness – key elements

• Recipients of SBA-guaranteed loans under the Paycheck Protection Program can apply for loan forgiveness over eight weeks for eligible payroll costs and for mortgage interest, rent, and utility payments -- SBA would pay lenders for any canceled debt plus accrued interest.

• Loan forgiveness would be reduced for businesses that fire employees or cut their pay.

• Canceled debt would be excluded from borrowers’ gross income for tax purposes.

• The measure also would authorize and provide $17 billion for the SBA to pay the principal, interest, and associated fees for loans under the 7(a), 504, and microloan programs for six months.

Disaster Loans 

The package provides $10 billion to expand the SBA’s disaster loan program from Jan. 31 through Dec. 31 to cover businesses, cooperatives, employee stock ownership plans, and tribal businesses with 500 or fewer employees, as well as sole proprietors and independent contractors.  The measure also authorizes SBA to advance up to $10,000 to existing and newly eligible disaster loan recipients within three days of receiving their applications. Recipients could use the advance funds to pay sick leave to employees affected by Covid-19, retain employees, address interrupted supply chains, make rent or mortgage payments, and repay debt. They wouldn’t have to repay the advance funds.

During Governor Baker's 3/27 daily press conference he announced that his office is asking all travelers arriving to Massachusetts to self-quarantine for 14 days. He reported that starting 3/27 info flyers will be available at Logan airport, Worcester airport and South Station. Roadside message boards will also alert drivers.

For the second day in a row, Baker spent time during the press conference to urge the use of telehealth options to more safely facilitate interactions between patients and heath care providers. He reminded the public that his administrator ordered telehealth to be covered by all health insurances and urged everyone to take full advantage of it. The Governor announced a new partnership, with Buoy Health, an online resource for residents to receive medical guidance from the safety of their home. The Governor reminded the public that Bouy Health should not be used in place of emergency medical care and it is free for Massachusetts residents and a tool to get guidance.

3/26/20: The full bill text of the Federal CARES Act, which passed the US Senate on 3/25/20 is available here. To read a section by section analysis of the Act, click here. And click here to view the Senate Appropriations Committee's supplemental summary.

The US House is hoping to act on this bill on March 27.

State Construction Guidelines and Procedures

The state has issued COVID-19 Guidelines and Procedures for All Construction Sites and Workers at All Public Work
These guidelines and procedures were developed in collaboration with the other state awarding entities so that a consistent document is being implemented and followed across the state. They take effect immediately. MassDOT recognizes that many contractors already have them in place. ALL contractors working on state projects will be implementing the same requirements.

Several specific requirements to note:
- At the start of every shift, employees must certify to their supervisor that they are healthy, have had no symptoms in the last 24 hours, has not been in contact with anyone testing positive, and are not under order by a doctor to be isolated.
- Employers are expected to develop their own, workable certification process – which could include verbal check-ins, paper certification, email, or phone call, for example. It is most important that a daily check-in is occurring.

Baker Administration Issues New Construction Guidance to Municipalities Clarifying Construction as an Essential Service 

On March 25, 2020, the Baker Administration issued construction guidance to Massachusetts municipalities overturning all local construction moratoriums. March 25, Governor Baker issued guidance  clarifying that the March 23, 2020 Order “Assuring Continued Operation of Essential Services in the Commonwealth, Closing Certain Workplaces, and Prohibiting Gatherings of More than 10 People” supersedes and makes inoperative any order or rule issued by a municipality that will or might in any way impede or interfere with the achievement of the objectives of this order. “Construction Workers who support the construction, operation, inspection and maintenance of construction sites and construction projects” are deemed essential.

This guidance advises all municipalities that had issued their own directives, policies and regulations in place regarding construction to withdraw their orders.

Link to letter sent to all municipalities.

Note: This letter includes important construction safety guidance related to COVID-19.

On March 25, 2020, Boston Mayor Marty Walsh extended the City of Boston's construction moratorium until further notice, citing safety and health concerns for workers and Boston residents. 

Link to Press Release

Note: This policy only applies to projects permitted by the City of Boston.

New Legislation Proposes Extension of Permits During Current State of Emergency

On March 24, Governor Baker filed H. 4586, An Act to Further Address Challenges Faced by Municipalities, School Districts, and State Authorities Resulting from COVID-19. While the bill addresses several topics, Section 9 of the bill addresses the tolling of permits.  Specifically, the language provides the following:

• No permit is automatically granted, approved, or denied because a local permitting authority does not act within a time period required by law.
• Any permit that is currently valid will not lapse or expire during the state of emergency, and suspends any time limitation on such permits during the emergency.
• Allows applications for permits to be filed electronically, so as to eliminate the need for in-person filing.
• Suspends any requirement that a hearing on a permit application be held within a certain period of time until 45 days after the end of the state of emergency.  

These changes will provide necessary relief to cities and towns that, due to disruptions caused by the state of emergency, are unable to timely process and hear permitting applications. At the same time, these changes balance the needs of residents and developers by ensuring that their current permits are not impaired by the emergency.