A large share of construction firms received loan funds under the new Paycheck Protection Program, enabling many of them to hire or retain employees despite a surge in project cancellations, according to a survey released by the Associated General Contractors of America (AGC).
Association officials said the measure appeared to be working but cautioned that longer term recovery measures, like new infrastructure funding and establishing a recovery fund, are needed.
“Most contractors report they have applied for the new federal loans, which are intended to enable small businesses to keep employees on their payrolls,” said Ken Simonson, the association’s chief economist. “This program has already delivered funds to nearly half of the survey respondents, and many of them have already brought back furloughed workers or added employees, even though more clients are halting and canceling projects.”
Simonson said 44 percent of the 849 firms responding to the survey reported they had already received funds through the loan program, which began on April 3. Another 15 percent said their applications had been approved but they had not received funding, while 8 percent were awaiting a reply to their applications and 7 percent had applied but been told no more funds were available.
Association officials added that 43 percent of firms would benefit from larger federal investments in infrastructure, while 35 percent would benefit from a pandemic risk insurance/COVID-19 business and employee continuity and recovery fund.
