ACEC News / Advocacy
January 21, 2021
ACEC Issues Action Alert on FAR Credits for Forgiven PPP Loans
ACEC is calling on members to contact their Congressional delegations and urge them to support waiving the FAR credits clause for forgiven Paycheck Protection Program loans.
A provision of the Federal Acquisition Regulation (FAR), which governs federal agency procurements and State Departments of Transportation using federal funds, will substantially undercut the benefits of the loan program by requiring engineering firms that qualify for forgiveness to return some or all of the loan as a credit on cost-based contracts.
The FAR credits clause (FAR 31.201-5) will require a refund or reduction in billing from a firm that has properly qualified for loan forgiveness, essentially forcing them to repay the loan through such credits. If the credit is applied to the firm’s indirect costs, the firm would be billing at a much lower rate the following year – and potentially in subsequent years, in the case of multi-year contracts.
ACEC is seeking a correction so that the FAR credits clause does not apply to forgiven PPP loans.
Log in here to the Action Alert center, which includes a sample email. Click on the lawmaker’s name to edit the message.
You can personalize the email with firm-specific information and details about how the potential credit for forgiven PPP loans will impact your business. You can also send the sample letter without changes.
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