What does a borrower do after becoming ineligible for the Paycheck Protection Program? | Varying actions by states, countries pose challenges for global contractors during pandemic | Attorneys: First PPP fraud case may be harbinger of future DOJ enforcement
May 13, 2020
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Leading News
The Small Business Administration has added several new rules and further guidance that might make some current borrowers ineligible for Paycheck Protection Program loans. Such businesses should make a determination by Thursday as to whether they are eligible, and they need to return PPP funds if they determine themselves to be ineligible, attorneys write.
Full Story: JD Supra/Proskauer Rose (5/11) 
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Construction contractors face major challenges during the coronavirus pandemic because of federal and state governments' varying orders and financial mitigation efforts in response to the outbreak. Companies must consider a project's contractual provisions, the jurisdictional implications and any applicable law, according to a law firm report.
Full Story: JD Supra/Jones Day (5/11) 
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Benefits of an In-House Surety Claims Team
The best surety claims teams often combine expertise, efficiency, and clear communication, plus seamless integration with other business teams. The benefits of in-house surety claims teams are magnified during times like these, highlighting how crucial it is to partner with a well-rounded surety that can help navigate complex situations and work to help find the best possible solutions. Learn More Here
Industry News
The Justice Department has brought charges against two men accused of fraudulently obtaining Paycheck Protection Program loans. The case "demonstrates that outright fraud will be quickly prosecuted and is a good example of the type of fraud that the DOJ is likely interested in pursuing," two attorneys write.
Full Story: JD Supra/Foley Hoag (5/7) 
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Programs offer alternatives to PPP funding
(Mike Lawrie/Getty Images)
Businesses that decide to return funds from the Paycheck Protection Program because of questions about their eligibility have alternatives to help sustain their businesses, an attorney writes. Options include employee retention credits and the Main Street Lending Program, he writes.
Full Story: JD Supra/Rosenberg Martin Greenberg (5/11) 
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Risk & Compliance
A new Virginia law makes contractors on large projects liable for subcontractors' wages and establishes contractors as employers of subcontractors' employees when determining criminal and civil liability for unpaid wages. The law also allows employees to sue employers jointly or as part of a class action, with damages to include treble damages when willful violations occur.
Full Story: JD Supra/Miles & Stockbridge P.C. (5/8) 
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Association News
NASBP Blog: Paycheck Protection Program -- after the pay comes the chase
NASBP Blog: Paycheck Protection Program -- after the pay comes the chase
The Paycheck Protection Program is important for businesses during the COVID-19 crisis. Applicants must be prepared for possible investigations and audits if they use these government funds. A group of attorneys from Williams Mullen write that these actions may occur months or years in the future and that applicants must be proactive to reduce risk of enforcement. They suggest looking at the Troubled Asset Relief Program from the 2008 financial crisis to see how investigations were handled, as well as meticulously documenting all action taken and keeping up with all the PPP interpretations and changes. Read more.
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"Bonding with Bandwidth" May 20 Virtual Event free for NASBP Members, Affiliates, Associates
"Bonding with Bandwidth" May 20 Virtual Event free for NASBP Members, Affiliates, Associates
Make sure to register for next week's NASBP Virtual Event: Bonding with Bandwidth! This complimentary event for all NASBP Members, Affiliates and Associates will be held from 1 p.m. to 4 p.m. Eastern on Wednesday, May 20. The event offers two panel discussions on topics specific to the surety industry -- one on False Claims Act liability implications for surety professionals and the other on industry efforts to obtain electronic bonding acceptance. Don't miss the announcement of the new NASBP Board of Directors for 2020-2021 and presentation of surety industry awards. The event will include remarks from outgoing President John Bustard and from the incoming 2020-2021 NASBP president. Register now to join us on May 20.
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NASBP podcast "Let's Get Surety!" examines surviving COVID-19 and economic downturn
NASBP podcast "Let's Get Surety!" examines surviving COVID-19 and economic downturn
Schleifer (NASBP)
NASBP's Podcast "Let's Get Surety: Let Me Hear Your Bonding Talk" is back with new episode "Surviving Crisis and Business Downturns in the Construction Industry." Host Kat Shamapande and co-host Mark McCallum talk with guest Dr. Tom Schleifer about how contractors can survive the COVID-19 crisis and resulting economic downturn. He cautions contractors to be wary of the "wait-and-see" model of managing the current downturn and to take a hard look now at cutting expenses to better weather this downturn. Also, be sure to listen to our episode with Julian Xavier of CLA: "The Paycheck Protection Program (PPP) From A CPA's Perspective." Xavier offers an overview of the Paycheck Protection Program. Access these and other "Let's Get Surety" episodes for free from any of these systems: Apple Podcasts, Google Podcasts, Spotify, Stitcher or SuretyLearn. Be guaranteed to succeed!
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Trends & Technology
Recovery from the financial crisis offers lessons for the construction industry as it prepares to emerge from the coronavirus pandemic. McKinsey identifies seven actions to take in anticipation of a new normal, beginning with a hard look at a changed supply-and-demand dynamic.
Full Story: McKinsey (5/8) 
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Opinion Poll
Are your construction contractor clients aware of the proper compliance steps to take when seeking federal stimulus funds?
Yes, most are
Yes, some are
No, most aren't
Not sure
Have your construction contractor clients applied for funding under the Paycheck Protection Program?
VoteNot sure
Sometimes I dread the truth of the lines I say. But the dread must never show.
Vivien Leigh,
film and stage actress
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Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.

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