4/7/2020

By Gary Thill

As the federal government extended its stay at home guidance until May 1, and the economic and health severity of the coronavirus pandemic sets in, roofers nationwide are left with questions surrounding the $2.2 trillion “phase 3” relief package. Other industry leaders are calling for additional measures to help contractors directly. 

Already, the economic impacts of the coronavirus are being felt, according to new survey results from NRCA. More than 40 percent of roofers said the coronavirus is having a significant and steadily increasing effect on their businesses and nearly 17% said they had begun laying off workers as a result. In another survey, the Association of General Contractors of America said 27% of contractors are laying off workers and 55% are being told to delay or cancel projects due to the pandemic. 

On the face of it, the small business portion of the package offers much needed relief. The Paycheck Protection Program provides $350 billion in U.S. Small Business Administration loans to small businesses under 500 employees and nonprofits for the purpose of maintaining existing workforce. It also includes $17 billion for the SBA to cover six months of payments for small businesses with existing SBA loans.

The U.S. Treasury Department's PPP Fact Sheet offers the following guidance:

• Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
  
  
• Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
  
  
• Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program

But roofers need clarification on several aspects of the program, according to Duane Musser, NRCA’s vice president of government relations. Musser said he’s working 12-hour days just trying to make sense of the legislation and fielding questions from roofers. He said a town hall on the subject drew more than 3,000 callers. 

“We are in completely uncharted territory here,” he said. “I’ve been working in DC for 30 years, and there’s never been anything like this in terms of legislation, because we’ve never had a situation like this.” 

Musser said the biggest question facing roofers is how the seasonal nature of some businesses affects their eligibility for the Paycheck Protection Program funds. “There’s just a lot of questions about the very specific things that need to be done by employers,” he said. “You need to look at the specific requirements and see how it applies to your situation.”
Musser said the SBA is expected to have more guidance on applying for the loans, and the qualifications for doing so, in the coming weeks. 

While most agree the relief package is a good  start, the Associated General Contractors of America called for more measures to help firms cope with the economic fallout. “The industry will not be able to truly recover until federal officials pass measures designed to stimulate new demand for construction, make contractors whole for losses because of the coronavirus and protect employee retirement and health plans,” said Stephen E. Sandherr, AGC’s CEO. 

Meanwhile, roofers are also wondering how to address “phase 2” legislation, The Families First Coronavirus Response Act. Generally, the act provides that employers with 500 employees or less must provide the following to all employees employed for at least 30 days:

• Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  
  
• Two weeks (up to 80 hours) of paid sick leave at two-thirds the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.
  
  
• Up to an additional 10 weeks of paid expanded family and medical leave at two-thirds the employee’s regular rate of pay where an employee is unable to work due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.

Musser said the size and speed at which the relief legislation came down has made it difficult for him and his team to make sense of it — let alone roofers themselves. “What normally would have taken months or even years to pass was done in one week. And what would normally take weeks, months or even years to rollout is being done in a few days,” he said. “Because of the need for speed and the severity, it’s new for everyone involved. So it’s very challenging.”