2022 didn’t get off to a great start, with yet another COVID surge in year three of the pandemic, which continues to impact everything from health care to supply chains. It’s not easy finding a silver lining, but the Bipartisan Infrastructure Bill signed into law last November offers more than a glimmer of hope nationally, for New York State, and in the Hudson Valley – especially for those in the construction industry.

At its essence, the law moves beyond the pandemic to focus on building a stronger, more competitive country for generations to come. Now is the time to get acquainted with it, so you’re prepared to make the most of this once in a lifetime investment in the Hudson Valley’s infrastructure and future.

What the Infrastructure Law Means to the U.S.

The $1.2 trillion law has money for everything from roads, bridges, railways, and highways to clean water, a stronger power grid, internet, climate change, and more. It includes 375 programs, of which 125 are new. Of the $1.2 trillion budget, $550 billion is new spending. There’s also $650 billion in previously authorized funding for roads and other infrastructure. About 60% of funds will be issued through formulas; the balance will be available through competitive applications.

What the Infrastructure Law Means to New York State

According to a White House Infrastructure Investment and Jobs Act State Fact Sheet for the state, over five years New York can expect to receive funds to:

• Repair and rebuild roads and bridges. With a focus on climate change mitigation, equity, and safety for all – including cyclists, pedestrians, and low-income communities, New York is slated to receive $11.6 billion for federal highway programs and $1.9 billion for bridge repairs and replacements based on formula funding alone. The state can also compete for $12.5 billion through the Bridge Investment Program and almost $16 billion for major projects delivering substantial economic benefits to communities.
• Improve healthy, sustainable transportation options. From formula funding, New York may receive $9.8 billion to improve public transportation.
• Build EV chargers for long distance travel and convenience. $175 million will be provided via formula funding to expand the EV charging network in the state and there will be the opportunity to compete for $2.5 billion in grant funding.
• Connect every New Yorker to reliable, high-speed internet. New York will receive a minimum of $100 million to help provide broadband coverage across the state. This includes providing internet service to more than 185,000 New Yorkers who currently lack access and helping low-income families afford internet service.
• Prepare for the impacts of climate change, cyberattacks, and extreme weather. Based on historical formula funding, New York may receive $34 million to protect against wildfires; $28 million to protect against cyberattacks; and a $3.5 billion national investment in weatherization which will reduce energy costs.
• Deliver clean drinking water to every New Yorker and get rid of lead service lines and pipes. Based on the traditional state revolving fund formula, New York may receive $2.6 billion to improve water infrastructure and ensure clean, safe drinking water for all communities. (In January, Governor Hochul announced $66 million in projects to improve drinking water and water infrastructure.)
• Upgrade airports for the 21^st New York will receive approximately $685 million for infrastructure development at airports.

What the Infrastructure Law Means to the Hudson Valley

Some of what’s expected to reach our local communities includes $12 million for Stewart International Airport; $1 million to Columbia County airport; and $800,000 to Orange County Airport and the Hudson Valley Regional Airport. Villages like Newburgh will likely benefit from state monies earmarked to replace lead pipes and service lines and combat contaminants. Commuters and towns will benefit if Metro-North receives some of the $11 billion going to the Metropolitan Transit Authority. Plus, there are eight bridges in the Hudson Valley slated for upgrades (with funding from Bridge NY and the new law). That’s just to start.

U.S. Senator Charles E Schumer’s office indicated, “The deal is the largest federal investment in history for upstate airports, water, transit, broadband, trains, bridges and roads.”

U.S. Representative Sean Maloney added, “Every penny spent is about infrastructure of course, but it’s really about growing our economy and jobs.”

RBT CPAs is tracking developments related to the Infrastructure Law so we can help clients in construction and government maximize forthcoming opportunities. If you have any questions or need advice to prepare for all things financial related to the law, contact your partners at RBT CPAs – we’re always here to help.

Sources: Build.Gov, Times Union, National Law Review, Forbes, ThomasNet, News 12, Brookings.Edu

The United States has historically underinvested in infrastructure facilities and systems, leaving businesses that build and supply products with unfulfilled promises.

Yet, infrastructure is essential, supporting the operation of society and the economy. Construction occupations engage in creative processes requiring building and repairing public and private physical structures. Further, the construction industry builds on opportunity. In fact, the construction industry is projected to grow 6% between 2020-2030, adding about 400,000 new jobs. Contractors are upbeat about sales and employment prospects as President Biden is investing in opportunities that will create a more robust equitable economy and higher quality of life for future generations. 2022 promises to have a positive impact on the construction industry and it is critical to keep informed.

The Biden Administration’s Build Back Better (BBBA) legislation intends to unite Americans around “things we can depend on,” by rebuilding a modern infrastructure that will have an exponential impact, empowering Americans. The BBBA is a comprehensive three-part transformative legislative framework:  part one, The American Rescue Plan, was signed into law on March 2021 as a Covid-19 relief package; however, the second and third parts of the proposed legislation, called the American Jobs Plan (AJP) and the American Families Plan (AFP), were forced into extensive negotiations, resulting in the bipartisan Infrastructure Investment and Jobs Act (IIJA), signed by Congress on November 15, 2021.

According to Grist, The IIJA was a major victory, indicating both political parties agreed to the critical need to invest $550 billion in new spending over the course of five years into America’s roads, bridges, tunnels, airports, ports, railways, transit, broadband communications and other physical infrastructure badly in need of an update as well as include a major backlog of projects and repair work deferred by the pandemic. The majority of the funding in IIJA goes toward traditional infrastructure. Here are a few graphics to demonstrate:  Funding Breakdown, Proposal vs Plan Comparison, Presidential Plan Comparison

Thomas Net explains, allotments were calculated per state and New York will get some of the largest funding.

The funds go directly through government agencies from the federal to the local level, giving them authority to distribute and oversee the money by giving grants; simultaneously designing the dozens of new programs outlined in the act and hiring more people and purchasing more technology to prepare. Vox clarifies, “The Department of Transportation has jurisdiction over the bulk of the funds and will oversee money for highways, public transit, and rail. The Environmental Protection Agency will oversee funding for drinking water and wastewater projects, including the replacement of lead pipes. The Department of Commerce will oversee funding for broadband deployment. The Department of Energy will oversee funding for the electric grid and clean energy investments. And the Department of Interior will oversee water management and natural disaster resilience.” While the cash flow is coming, investment choices are challenging. States, regions, and local governments want to know more details about how to equitably distribute and target the funds to construction projects in most need.  Biden remarked in a speech given on January 14, 2022, “We’ve got a lot of work to do…. We are going to get it done…, and I want every penny watched.”

The construction industry needs to keep a close eye on the years ahead.  Here are tips to consider:

• Prepare to be either a government contractor or a supplier to one
• Start with existing programs, like fixing roads or replacing water pipes because government contracts will be available sooner
• Then, plan for system expansions like additions to the broadband internet infrastructure
• Go for new programs last, especially competitive grant programs because they will need to be set up from scratch
• Retain and recruit skilled workers with premium pay and benefits
• Provide workplace incentives for current and future employees
• Consider acquisitions, partnerships, and joint ventures to position your company
• Tap into tax credits to lower the upfront costs
• Purchase goods primarily manufactured in the U.S. for an additional ten percent tax credit
• Invest in technology/technological innovations to streamline all aspects of the project
• Keep up with The White House’s Fact Sheet Releases. HERE is the direct link to New York.

Biden stated, “There is nothing beyond our capacity when we work together.”  Construction occupations demand teamwork in the broadest sense.  RBT hopes businesses can envision the future with pride as they look at what can be built together.  If you’d like to know more, our dedicated team is here to help develop a personalized long-term strategy for you.  Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

SOURCES: lohud, usgbc, Congress, White House, E.D.A., CE, Grist, CNN, Vox, Thomas Net, ABC, Vox, Zepth

If you do business in the city, you need to be aware of the latest major expansion to New York’s “Key to NYC” program. Just last week, Mayor Bill de Blasio announced the first-in-the-nation vaccine mandate for private-sector workers which will take effect on December 27th, and will apply to roughly 184,000 businesses. This substantial change will surely impact contractors with upcoming jobs in the city.

“New York City will not give a single inch in the fight against COVID-19. Vaccination is the way out of this pandemic, and these are bold, first-in-the-nation measures to encourage New Yorkers to keep themselves and their communities safe,” said Mayor Bill de Blasio.

Currently, only municipal employees are subject to a COVID-19 inoculation requirement, which took effect for most city workers in late October and prompted backlash from members of the FDNY, NYPD, and the city Department of Education. In response, a rep for Mayor-elect Eric Adams, who will take office Jan. 1, did not take a position on de Blasio’s controversial measure.

“The mayor-elect will evaluate this mandate and other COVID strategies when he is in office and make determinations based on science, efficacy and the advice of health professionals,” said spokesman Evan Thies.

Acceptable proof of vaccination includes a CDC-issued vaccination card, the New York State Excelsior Pass, the Clear Health Pass, and the NYC COVID Safe App. The city will issue additional enforcement and reasonable accommodation guidance on December 15th, along with additional resources to support small businesses with implementation. This mandate expansion follows recently announced vaccination mandates for City employees, childcare providers, and non-public school employees. Ninety-four percent of the City workforce is vaccinated.

As recently as December 10, Governor Kathy Hochul announced that employees and patrons of all New York businesses and worksites must wear a mask indoors effective December 13 unless the business implements a vaccine requirement. This new measure was announced to address a rise in COVID-19 cases and hospitalizations and aims to curb outbreaks during the holiday season when more time is spent indoors and with crowds. Alternatively, employers can implement a vaccine mandate, requiring that all employees and customers present proof of vaccination in order to enter. Businesses that violate this measure face civil and criminal penalties, including fines of up to $1,000 per violation. The mandate will remain in effect through January 15, at which time the state will re-evaluate the conditions.

Our team is carefully tracking these developments and will continue to keep our clients informed through our upcoming thought leadership content. Questions or concerns? Our professional RBT team that specializes in construction clients is here to help, contact us today. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: NYC.GOV, Governor.NY.GOV

Since COVID-19 entered our lives and disrupted our normal protocols, reassessing workplace safety has been on every employer’s mind, especially within hands-on industries like construction work. Below we’ll review a timeline of important statewide legal action that impacts you, your employees, and the future of your company.

In response to the pandemic, the New York Health and Essential Rights Act (NY HERO Act) was signed into law on May 5, 2021.

The HERO Act mandates extensive new workplace health and safety protections. The goal? To protect employees against exposure and disease during a future airborne infectious disease outbreak.

On September 6, 2021, Governor Kathy Hochul announced the designation of COVID-19 as an airborne infectious disease under the HERO Act.

This designation requires all employers to implement workplace safety plans. Under this new law, the New York State Department of Labor (NYS DOL), in consultation with the NYS Department of Health, has developed a new Airborne Infectious Disease Exposure Prevention Standard, a Model Airborne Infectious Disease Exposure Prevention Plan, and various industry-specific model plans for the prevention of airborne infectious disease.

On September 23, 2021, the DOL updated its Model Airborne Infectious Disease Exposure Prevention Plan.

The most notable change to the Model Plan is the loosening of face-covering requirements for employees in workplaces where all individuals on the premises are vaccinated. The Model Plan states that for workplaces where all individuals on the premises are fully vaccinated, appropriate face coverings are recommended, but not required, consistent with State Department of Health and the Centers for Disease Control and Prevention applicable guidance, as of September 16, 2021. The model plan also revised the language on physical distancing to read, “Physical distancing will be used, to the extent feasible, as advised by guidance from State Department of Health or the Centers for Disease Control and Prevention, as applicable.”

While you likely already have your plan established and distributed (or face hefty financial fines) employers should continue to review/update safety plans, and conduct employee training.

It’s also important to note that a second section of the HERO Act, effective November 1, 2021, allows employees to form a joint labor-management workplace safety committee.

The committee must be comprised of both employer and employee designees, with at least two-thirds nonsupervisory employees who are chosen by nonsupervisory employees. The Act authorizes committees to:

• Raise health and safety concerns, to which employers must respond
• Review health and safety policies enacted in response to laws, executive orders, or guidance
• Participate in government workplace site visits
• Review employer-filed reports related to workplace health and safety
• Meet quarterly during working hours for up to two hours
• Allow committee members to attend a training, not to exceed four hours, on occupational health and safety and the function of worker safety committees

THE DOL will likely publish future guidance on how to best communicate this information to employees. The DOL’s HERO Act web page provides links to model safety plans and other construction site-specific information. As a best practice, we advise all union employers to preemptively check their collective bargaining agreements to see if the safety committee requirements conflict, as the terms of the committees will most likely be subject to bargaining.

Thinking of not complying? Think again.

Employers may be subject to daily penalties between $50.00 and $10,000.00 for failure to comply with the NY HERO Act requirements. In summary, change and updates are the norm in the current climate we find ourselves in. Employers must be aware of changing rules and regulations as they pop up in real time. Additionally, as supply chain delays and material shortages persist through the fall and winter months, it’s a good idea to obtain and properly store personal protective equipment and other exposure controls in preparation for future infectious disease outbreaks. Don’t hesitate to act. This plan can be implemented with expert guidance. If you have question, please feel free to contact our dedicated RBT team who specialize in assisting construction client needs.

In the past, we have stressed the importance of taking advantage of the Employee Retention Credit (ERC), which was created by the Coronavirus Aid, Relief and Economic Security (CARES) Act and signed into law in March 2020, to encourage businesses to keep employees on their payroll. But since being implemented, there are several updates employers need to keep on their radar. Read on to learn about new IRS guidance that could mean bigger cost savings for you and your team.

To take full advantage of this opportunity, you need to understand the new ERC guidance the IRS released on August 4, 2021. Notice 2021-49 addresses changes made by the American Rescue Plan Act (ARPA) to the ERC that are applicable to the third and fourth quarters of 2021, including:

• Making the credit available to eligible employers that pay qualified wages after June 30, 2021, and before January 1, 2022
• Expanding the definition of eligible employer to include “recovery startup businesses”
• Modifying the definition of qualified wages for “severely financially distressed employers”
• Providing that the employee retention credit does not apply to qualified wages taken into account as payroll costs in connection with a shuttered venue grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or a restaurant revitalization grant under section 5003 of the ARPA

The new guidance also responds to frequently asked ERC questions, including:

• The definition of a full-time employee and whether that definition includes full-time equivalents.
• The treatment of tips as qualified wages and the interaction with the section 45B credit.
• The timing of the qualified wages deduction disallowance and whether taxpayers that already filed an income tax return must amend that return after claiming the credit on an adjusted employment tax return.
• Whether wages paid to majority owners and their spouses may be treated as qualified wages.

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their employment tax returns. If a reduction in the employer’s employment tax deposits is not sufficient to cover the credit, certain employers may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

On the horizon:

Earlier this month, the Senate passed its bipartisan infrastructure plan H.R. 3684, (the Infrastructure Investment and Jobs Act) by a vote of 69–30 which now goes to the House of Representatives for consideration. While this is a hugely historic piece of legislation that we suggest you follow separately, it’s crucial to note that the infrastructure bill would end the employee retention credit (ERC) early, making wages paid after Sept. 30, 2021 ineligible for the credit. The IRS and the Treasury said they’re closely monitoring the pending legislation related to the ERC and will provide additional information as needed. As a best practice, we suggest watching this legislative development closely in the coming days and weeks. Frequently asked questions and updates on the employee retention credit, tax credits for required paid leave and other items can be found on the coronavirus page of IRS.gov. Still need guidance to navigate the ERC? Contact our team of professionals today to set up a consultative conversation.

Sources: IRS, SHRM, Accounting Today

It’s a tough time to be a contractor or a person searching for housing in New York.

Lumber and material costs are handcuffing builders and contractors all over the country. The National Association of Home Builders estimates that the rising cost could add up to $24,000 to the price of a new build. Additionally, Hudson Valley is now officially a housing hot spot for those leaving New York City in the wake of the pandemic. The average asking price for homes in Kingston sits at $297,500, or $202 per square foot according to Realtor.com. That’s a whopping 32% higher than last year – pricing out a lot of Hudson Valley natives, but comparatively, it’s a steal for city dwellers used to two-bedroom apartments that are four times as pricey. So, this material cost explosion, coupled with a lack of available housing puts construction companies and potential buyers (or renters) in precarious financial positions. One possible trend on the horizon we want you to keep on your radar? Repurposing hotels and motels into coveted multifamily housing. Let us explain.

It probably comes as no shock to you that the hotel industry experienced the most devastating year on record in 2020.

Travel restrictions meant historically low occupancy, massive job loss, and hotel closures across the country. According to a report by the American Hotel and Lodging Association, many industry challenges persist in 2021, so it anticipates that travel will not return to 2019 levels until 2024. And even as the hotel industry begins to slowly recover from the short-term decline in demand during the pandemic, its long-term recovery will likely depend on how the industry will compete with hosts that offer short-term rentals and home-sharing through companies like Airbnb. Locally, Hutton Brickyards in Kingston has recently been transformed from a former brick manufacturing property into a riverfront resort with private cabins, a spa, restaurant, and events space. While this is an example of a hotel expansion rather than multifamily housing conversion, it reflects the growing consumer trend (especially among millennial travelers) toward authentic and localized experiences, through lifestyle hotels and experiences. The Hutton Brickyards project captures the essence of repurposing underutilized spaces in Hudson Valley and providing revitalization, revenue, and value.

The National Association of Realtors recently completed a revealing research study.

It surveyed groups that were already pursuing hotel/motel conversions across the country. According to study findings, in 65% of hotels/motels converted into multifamily housing, the rent was either 100% below market rate or a mix of below-market and market rate. Private investors are the main financiers of hotels/motels being converted into multifamily housing, accounting for 27% of the source of funding of transactions reported by NAR members. Local banks are the next largest source of funding, and government financing accounted for 7%. Affordable housing developers also provide financing. Federal financing is available to developers who convert hotels into below-market-rate units, such as the Low Income Housing Tax Credits (LIHTC) and the Home Investment Partnership Program (HOME).

Ultimately, the redevelopment of properties within Hudson Valley could range from a straightforward to a complex redevelopment with an assortment of public-partnership arrangements or purely private redevelopment.

Of course, zoning can pose a significant challenge when converting a hotel/motel to multifamily housing, but one approach may be to acquire extended-stay hotels/motels as they have more traditional kitchens or kitchenettes. Simply put, you can take advantage of properties that already have good bones. Working with local government and neighborhood residents throughout each phase of a project to meet zoning regulations and address neighborhood concerns would be essential to the success of any future property conversion. Beyond the variety of services we perform for our clients at RBT, we aim to pass along useful, relevant information to help our communities succeed, grow and prosper. As we continue to dedicate time and resources to helping our construction clients achieve success, we look forward to connecting with you and your team.

Sources: NAR, AHLA

Are you considering purchasing an existing construction company? Congratulations, we hope you have your hard hat on and are ready for some (figuratively) heavy lifting. Whether this is part of your long-term plan, or you’re already deep into the process, there are a lot of critical considerations you need to make before you take the plunge. One of the most overlooked factors: unfunded pension liability. Don’t fall into the trap of being unprepared when it’s negotiation time.

Why are unfunded pension liabilities my problem now?

You know the saying once you own it, you own all of it – the good, the bad, and the ugly? You need a clear financial picture of what you’re walking into. There’s no room for surprise costs popping up, and unknown unfunded liabilities can quickly become your responsibility. With nearly 40 percent of all multiemployer defined benefit (DB) plans operating in the construction industry, you probably already know these plans tend to be poorly funded. A 2020 federal study even revealed that the multiemployer insurance program is highly likely to become insolvent by 2025.

Ask yourself, is this an asset or a stock sale?

If it’s an asset sale, successor liability law typically states that the buyer won’t assume the seller’s corporate liabilities. Usually in this type of sale, the withdrawal liability stays with the seller, who can then dissolve. However, in certain cases, courts have found successor liability for the buyer in an asset acquisition.

If it’s a stock sale, a withdrawal from a multiemployer pension plan typically isn’t triggered, as long as there is no interruption to the obligation of the sold entity to contribute to the plan.

What can you anticipate from the seller?

It’s not uncommon for sellers to categorize withdrawal liability as irrelevant to deal pricing. But certain situations arise where liability can be triggered against the wishes of the employer, or without any affirmative action, such as a union decertification, a significant business downturn, or an asset sale. It’s always a best practice to ask the seller to go back to the unions and find out what the withdrawal liability is in advance. Once you have this insight, get to negotiating. Perhaps you suggest that the seller uses some of the sale proceeds to pay off the withdrawal liability so you get a fresh start, or you might suggest a reduced selling price.

How can buyers protect themselves?

Because a company’s financial statements are not required to disclose the amount of pension plan liability in the event of withdrawal, buyers often overlook the amount of any such potential liability when setting the purchase price at the bid stage. This can wind up being a huge mistake. Remember, you want the price of the sale to suitably account for potential liability. If a recent estimate of the company’s potential withdrawal liability is unavailable, collect information so an expert can estimate withdrawal liability exposure. Protect yourself by reviewing the plan’s level of funding, a detailed history of the target company’s contributions to the plan, and information about the company’s contributing plan members. It’s also critical to find out the number of unions the company participates in.

What other steps should I take?

Keep in mind there are certain exceptions for construction employers, and the recent American Rescue Plan Act provided funding for some of the severely underfunded pension plans which may relinquish the liability for some employers. Projections estimate that qualified plans will receive approximately $86 billion in assistance. The regulations are expected in early July, you can stay up to date here. Ultimately, every union contract is different. Consider special purchase agreement provisions: an agreement that sellers will pay withdrawal liability assessments, broad indemnification rights, or purchase price adjustments. It might make sense to establish an escrow account to cover potential liability. Most importantly, always consult with a team of financial professionals and legal representatives to navigate this issue so you set your company up for success.

Source: TaxExecutive, Congressional Research Service, PBGC

One of the biggest challenges the construction industry faced before the pandemic, still exists today. We need to expand efforts to engage the next generation and get young adults excited about this field. More than 40% of construction workers are baby boomers, meaning that most of that 40% will be of retirement age in the next five to seven years. Studies also show that construction workers retire from their field earlier than workers in other industries, largely due to the physical demands of the job. In addition to the generational gap, there is a gender balance gap plaguing the industry, as well. There is a considerable gap between the number of working women and those who choose to work in construction. While women comprise up to 47% of the total US labor workforce, only 9.9% of the construction workforce are women. While there are many issues to address, our Construction Accounting Services team wants you to be aware of vital undergraduate and graduate scholarship funding available through The Associated General Contractors of America (AGC) so you can pass on time-sensitive information to your partners and communities.

As the leading association for the construction industry, AGC represents more than 27,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. The AGC Education and Research Foundation offers undergraduate and graduate-level scholarships to students enrolled in ABET or ACCE – accredited construction management or construction-related engineering programs. Over $10 million in scholarships have been awarded to more than 4,000 students attending colleges and universities across the country. The criteria to apply for undergraduate and graduate scholarships outlines the eligibility to apply. A maximum of $2,500 per student per year will be distributed for undergraduate scholarships and may be renewable for up to three years of undergraduate study in construction-related engineering, construction, or a dual degree with construction or construction-related engineering as one part. The Graduate Scholarship recipient(s) will receive $3,750 annually to be used for the duration of the student’s graduate degree program, up to $7,500. Scholarship winners will be notified in March 2022 and award(s) will be announced at the AGC Annual Convention. Applications for 2021 will be accepted until June 1, so it is essential to get the word out to any eligible students as soon as possible.

Many challenges undoubtedly lie ahead as the construction industry struggles to attract and retain the next generation, but it is our hope that by presenting young people with information about financial opportunities, we can help advance the next wave of contractors. AT RBT, we pride ourselves on assisting construction professionals to build the most sustainable businesses you can with our comprehensive services. But beyond the variety of services we perform, we aim to pass along useful, relevant information to help our communities succeed, grow and prosper. As we continue to dedicate time and resources to helping our construction clients achieve success, we look forward to connecting with you and your team.

Across the country, small businesses create two-thirds of new jobs and employ nearly half of America’s workers, yet nearly a year into the COVID-19 pandemic, many are still struggling to survive. If you feel like there are constant updates surrounding the Paycheck Protection Program, you’re not alone. This week, the Biden administration announced several PPP changes in an effort to reach minority-owned and very small businesses that may have previously missed out on accessing loans. With the March 31^st PPP application closing date looming, your business may benefit from some of the updates. Below is a summary of the main updates to keep in mind.

Bigger Focus on Small Business

Did you know that 98% of small businesses have fewer than 20 employees? Maybe this describes your business or a local vendor you work closely with. Starting Wednesday of this week, small businesses with fewer than 20 employees will have a two-week exclusive window to apply for the funding. Bigger businesses will be blocked during that time period. The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses.

Other Eligibility Changes

Starting in March, self-employed, sole proprietors and independent contractors will now qualify for more money. They were previously excluded altogether or received as little as $1 because the loan amounts were calculated based on the number of employees. The loan program will also open up to small business owners with non-fraud-related felonies as long as the applicant or owner is not incarcerated at the time of the application. With millions of Americans delinquent on student loans, those struggling to pay off student loan debt can now apply to the program, too. Working with the Departments of the Treasury and Education, the SBA will remove the student loan delinquency restriction to broaden access to the PPP. Some non-citizen residents, such as Green Card holders or those in the country on visas were previously excluded but can also now apply by using their Individual Taxpayer Identification Numbers (ITINs) for relief.

The PPP application is currently being revamped and the SBA website is being updated to help more applicants find relief option resources and complete applications. To improve access to capital for small businesses, the SBA is also in the process of launching a new initiative to deepen its relationships with lenders. This model will increase the opportunity for lenders to provide recommendations and ask questions about the PPP and drive the resolution of open questions and concerns in a more streamlined way. The latest PPP, which began on January 11 and runs through the end of March, has already paid out $133.5 billion in loans — about half of the $284 billion allocated by Congress — with an average loan under $74,000.

Do you have questions about your construction company and the new changes we mentioned above? To learn if previous restrictions were preventing you from accessing the funds you need, contact our team today before time runs out. If you want streamlined construction accounting in Mid-Hudson Valley, NY, RBT has the essential services you’re looking for.

Sources: Whitehouse, Forbes

Green-tech.

Depending on which side of the grass you’re standing on, it’s a term you either love or hate. For years, the misconception that going green is too costly for small and medium-sized contractors has prevented companies from getting a piece of the sustainable construction market action. A market which, I might add, is projected to top $523 billion by 2026. As customers have become increasingly aware of environmental concerns, research and development of sustainable materials have exploded. What does that mean for you? More building options, more growth opportunity, and a wider pool of potential clients if you’re willing to shift with the changing times. There are several innovative ways to go green. Some may be more relevant than others in your daily operation. Here are a few examples to get your creativity flowing:

• Use of RMC (Ready Mixed Concrete) instead of bricks to reduces wastage
• Radiant-cooling technology
• Rainwater harvesting
• Biodegradable or recycled construction material usage
• IoT Integrated Automated Building Systems
• DGU Windows to reduce sound and heat from coming in
• Shadow concept construction

Off-site fabrication, improved on-site maintenance, lean practices, and landfill avoidance – the list truly goes on.

The reality is, as state and local governments get serious about going green, the opportunity for your business to integrate innovations is there for the taking. Consider that 77% of millennial consumers agree they will pay more for products from sustainable sources, according to Nielsen. Now more than ever, environmentally conscious clients are willing to trade off a slightly higher upfront investment for ongoing savings, especially when a contractor can prove their suggested design will perform as desired with advanced energy use modeling.

If you’re just breaking into this arena, it’s best to follow New York’s green building requirements, you can reference guidelines here. For starters, you should know financial solutions exist to make going green more affordable and cost-efficient for your operation. The Environmental Protection Agency (EPA) provides grants for qualified, environmentally responsible programs and The Small Business Administration (SBA) offers still more options for green solution construction. The New York State Energy Research and Development Authority offers financial and technical assistance programs and the New York Financial Incentives for Renewables and Energy Efficiency finds state and local financial incentives that promote renewable energy upgrades. Your organization can even achieve a Leadership in Energy and Environmental Design (LEED) rating by adhering to guidelines outlined and advocated by U.S. Green Building Council (USGBC). LEED-certified buildings qualify for tax benefits and incentives from tax credits, grants, and expedited building permits to reductions or waivers in fees. When you consider the federal tax credits for building energy efficient projects, you can start to see the true value of incorporating green practices.

Around the globe, countries are continuing to build incentives for going green.

The UK recently introduced the Green Homes Grant and similar structures are likely to be introduced in the states. The New York State Department of Environmental Conservation has already rolled out an aggressive plan to reduce greenhouse gas emissions to 40% of 1990 levels by 2030. They’ll no doubt need to further incentivize, support, and partner with contractors to accomplish that hefty goal. This could mean huge financial motivations for your client pool down the road, all the more reason to be progressive and familiarize your team with green practices now. In many instances, reducing energy consumption has gone from being a “good idea” to a business necessity. The more you explore adopting environmentally-friendly technology and materials, the more we think you will find building green is good for public health, the environment, and your bottom line. Have questions about your business plan? RBT’s dedicated team is here to answer your pressing questions. Contact us here, today.