Producers, sureties seek action requiring acceptance of electronic execution of bonding | Trade and professional groups urge Trump to clarify essential infrastructure | SBA expands guidance on Paycheck Protection Program borrower calculations, eligibility
April 8, 2020
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NASBP and SFAA jointly have urged federal, state and local officials to issue emergency action without delay regarding acceptance of the electronic execution and delivery of construction surety bonds and commercial surety bonds. Social distancing and shelter-in-place rules have made traditional ink signatures and stamped notarizations on bond documents unfeasible in many places.
NASBP and other trade and industry groups have sent a letter encouraging President Donald Trump to specify which infrastructure is considered essential during the coronavirus pandemic. "Such infrastructure should include essential design, construction and related services of public works, including airport operations, roads and highways, public transportation, energy, and of critical importance today, expanding, retrofitting, and rehabilitating structures" to meet coronavirus-related production needs of health care and other systems and facilities, the letter says.
Surety Agents and Sureties Can Help Small Contractors Manage Risk Before bidding on jobs or signing contracts, small contractors should get expert information from surety agents and sureties on how to reduce risk. Working together, they can examine and mitigate possible risks from owners, general contractors, contract language, suppliers, labor issues, materials availability and pricing, weather, thieves and safety practices. Learn more here
The Small Business Administration has provided new guidance on borrower calculations and eligibility for the Paycheck Protection Program. Borrowers can apply through an existing SBA lender, and the loans will be forgiven if at least 75% of the proceeds go toward payroll costs, two attorneys write.
Construction firm leaders need to communicate regularly to help ensure their employees' mental well-being during the coronavirus pandemic, a risk management expert writes. Communication that is "honest, forward-looking and realistic" is important to help ease the anxiety, fear and stress that employees and their families are facing, he writes.
Contractors need to review their contracts and develop a plan in case projects are placed on hold because of the coronavirus, three attorneys write. Elements of such planning should outline how to communicate with the project owner and public as well as what steps to take if an employee is exposed to the virus, they write.
The Times-Picayune | The New Orleans Advocate
NASBP Blog: Thinking about public-private partnerships during an economic crisis
Public-private partnerships (P3s) can and should play a role in the coming months -- "both to address the current situation, and to help keep our economy competitive and preserve our quality of life well into the future," explains Eric Singer, a partner and member of the law firm Bilzin Sumberg. State and local government agencies need to stay the course, to the extent possible, with respect to their currently planned P3 projects, Singer writes. Read more.
Time is running out -- final deadline for NASBP membership dues payment is May 15
Be sure you continue to receive the many benefits of your NASBP membership. NASBP would like to remind you that, according to NASBP Bylaws, if you haven't paid your membership dues, your membership will terminate automatically within 90 days after the date on which they are due or within two weeks of the first day of the NASBP Annual Meeting. Although the 2020 NASBP Annual Meeting has been canceled, we urge you to pay your membership dues before your NASBP benefits are terminated May 15. If you have any questions or concerns, contact Dasha Harris via email or at (240) 200-1282.
NASBP Podcast: "Making the Case for the Value of Electronic Bonding"
Be sure to listen to NASBP's latest free podcast episode, "Making the Case for the Value of Electronic Bonding." During this episode of the NASBP podcast "Let's Get Surety," Corban Enns, area vice president of NASBP Member Surety Solutions, a Gallagher Company, explains what helped lead stakeholders of the electronic bonding system, Nationwide Multistate Licensing System (NMLS), to transition to and accept electronic bonds. Enns also shares his insights into how and why mortgage brokers came to accept electronic bonding and ultimately the establishment of the NMLS. He explains how that process serves as an example for other types of commercial surety bonds and for contract surety bonds, especially in light of the remote-work world in which we find ourselves. Also, be sure to listen to our podcast with surety executive Peter Quinn of Crum & Forster that was posted on Friday, April 3. During the episode titled "Surety in This New World: Focusing on the People and Moving Forward," Quinn shares how his company is keeping the focus on people and relationships during these unprecedented times.
A market intelligence expert predicts that construction business will return to normal by mid-May. He created a Fear and Recovery Curve model to forecast when the coronavirus pandemic will peak and begin to wane.
Everything must be taken into account. If the fact will not fit the theory -- let the theory go.
Agatha Christie, writer
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.