This article was originally published on April 17, 2020. Last updated: May 22, 2020. The coronavirus (COVID-19) pandemic has turned everyday life upside down. New cases are being identified every day and the death toll continues to rise. Almost every state currently has a shelter in place or stay at home order in place with many businesses and activities are closed in order to help flatten the curve.
As a result of the coronavirus (COVID-19) pandemic and its impact on the global economy, the construction industry is facing extreme challenges caused by some state and local shutdowns which have closed construction sites, decreases in funding for public projects that rely on tax revenues, owners putting projects on hold or canceling projects due to economic uncertainty, and supply chain shortages both nationally and globally.
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The current health crisis caused by COVID-19 is having a significant impact on the construction industry. State-ordered work stoppages in some states as well as delayed and canceled projects are starting to take a toll on contractors as they are forced to lay off workers and develop plans to weather the storm.
This article was originally published on April 9, 2020. Last updated on April 22, 2020. April 22, 2020 Update: Less than a week after the Paycheck Protection Program ran out of funds, Congress has approved an additional $320 billion that could be available as early as next week. The Senate passed the bill on Tuesday and the House is expected to vote on the bill on Thursday. This is great news for small businesses that applied and didn't receive funds and for independent contractors and self-employed individuals who weren't even allowed to apply for the loans until April 10. The new funding also allocates $60 billion to the Economic Injury Disaster Loan program which is intended to be used for working capital. April 17, 2020 Update: The Paycheck Protection Program, which was part of the CARES Act, has run out of the $349 billion available for small businesses to be able to keep their workers employed for eight weeks during the pandemic. Companies that qualified were able to start applying on April 3, 2020 and it was expected to run through June 30, 2020. The Small Business Administration said that they are no longer accepting applications while the Treasury Department and Congress work to approve more funding. The CARES (Coronavirus Aid, Relief, and Economic Security) Act includes many potential relief opportunities for the nation’s construction industry, which has been hit hard with disrupted supply demand, delayed projects, closed sites, and labor shortages. The Paycheck Protection Program (PPP), a provision in the CARES Act, will help construction companies keep their workforce employed during the coronavirus crisis.
The coronavirus pandemic is putting a strain on the nation’s healthcare system as hospitals try and keep pace with the growing number of confirmed cases of COVID-19. In order to treat the growing number of coronavirus patients, states and healthcare providers are looking for ways to add more hospitals beds in some unconventional ways. Everything from moving in naval ships to opening up recently shuttered hospitals to converting currently unused spaces like dormitories, hotels, and convention centers are being considered.
This article was originally published on April 6, 2020. While lawmakers plan another round of stimulus legislation to combat rampant unemployment and help struggling businesses, there is still a lot to unpack for the construction industry around the last one—the $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act).