COVID-19 Update: FAQ on Construction Shutdown, Update on Federal Programs & Resources for CRE

Shutdown of Non-Essential Construction – FAQ Updated As we shared on Tuesday, the Baker-Polito Administration updated the construction related guidance in response to the COVID-19 pandemic. The new guidance limits “essential” construction to housing and critical infrastructure activities. Under the revised list, private nonresidential construction is not considered essential (unless it falls within one of the specified exemptions). As of noon, April 1, only housing projects (including mixed use with housing), infrastructure, public works projects and construction related to COVID-19 can proceed. The state understands the need to wind down and provide security at an uncompleted project. A minimal crew for security is permissible under the following categories of essential service: 1) Security staff to maintain building access control and physical security measures and 2) Workers to ensure continuity of building functions, including but not limited to security and environmental controls (e.g., HVAC). The state has updated the FAQ page to answer questions on this issue.
Legislative Update – Municipal Permit Tolling Bill Expected to be Passed in House & Senate Today H. 4598, An Act to address challenges faced by municipalities and state authorities resulting from COVID-19, which includes language that addresses the tolling of local permits and is supported by the Mass Municipal Association, NAIOP MA, and the Home Builders & Remodelers Association, is expected to be passed in the House and Senate today and, hopefully, signed by the Governor as soon as this weekend. When it is signed into law we will let you know. 
SJC Postpones Trials in MA Until May 4 Yesterday, the Supreme Judicial Court issued an order postponing all state trials to May 4, at the earliest. All civil and criminal trials which were scheduled to begin on or before May 1 will be delayed “unless the trial is a bench trial in a civil matter and may be conducted otherwise than in-person by agreement of the parties and of the court.” The offices of court clerks, registers, and recorders will continue to work. These duties include scheduling and facilitating hearings, issuing orders, answering questions from legal professionals and the public, and performing other necessary tasks. All business except the filing of pleadings and other documents will be done virtually.
CARES ACT – Resources for Small Businesses  The Paycheck Protection Program (PPP) is a loan program designed to provide a direct incentive for small businesses to keep workers on the payroll. Loans are up to $10M, with a 0.5% interest rate and a 2-year maturity; there are no payments for the first six months.  

Who can apply? Businesses, non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees.

When can I apply? The Paycheck Protection Program will be available beginning on Friday, April 3rd. Applications must be submitted by June 30, 2020.

How do I apply? You can apply for the Paycheck Protection Program through any existing SBA 7(a) lender or through any participating federally insured depository institution, federally insured credit union, or Farm Credit institution. Ask your local lender if it is participating in the program.

What else should I know? The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020. Read more here.  

The Economic Injury Disaster Loan Advance is a Loan Advance of $10,000 that is available to applicants who have been approved for an Economic Injury Disaster Loan; it does not need to be repaid, so you can think of the Advance as a grant for business expenses.  

Who can apply? If you have applied or intend to apply to the Economic Injury Disaster Loan program, you can also apply for a Loan Advance.

When can I apply? The Loan Advance is available now.

How do I apply? Visit the SBA’s website to submit an application for the Economic Disaster Injury Loan and Loan Advance.

What else should I know? Please note that you should submit an application at the above link, even if you’ve previously submitted an EIDL application prior to the Loan Advance being available. Read more here.  

The SBA is also offering Debt Relief to small businesses. Under this relief, the SBA will pay the principal and interest for six months beginning March 27th, 2020 for qualifying new and current holders of 7(a) loans.

Who can apply? Businesses who already have a covered 7(a) SBA loan or receive a 7(a) SBA loan prior to September 27, 2020.

When can I apply? This relief is applied for covered loans beginning with payments due after March 27, 2020.

How do I apply? Reach out to your SBA lender to discuss how this debt relief applies to your SBA loan.

What else should I know? This debt relief is available only to 7(a) loans and not to loans made under the Paycheck Protection Program, 504 loans, or microloans. Read more here.   Two other Small Business Administration loan programs are also open: Economic Injury Disaster Loans are available through the SBA website; apply here. EIDL loans can be up to $2M, with interest rates of 3.75%, and are for businesses whose revenues were adversely impacted by the coronavirus outbreak. The Express Bridge Loan Program is available to businesses that have an existing business relationship with an SBA-approved lender; speak to your lender about accessing this option while you await a decision on long-term financing. 
Statement from Eversource on Services During COVID-19 Eversource wants to reassure the development community that we are currently well prepared to continue providing safe, reliable energy and essential services while also safeguarding the health and well-being of our employees and the communities we serve. Connecting new customers is considered an essential service, therefore, here at Eversource: Our Customer Service and Engineering teams are working remotely, taking orders and designing and engineering your project. In an effort to maximize safety, joint site meetings are suspended and replaced with conference calls and virtual meetings. Individual site visits will continue where necessary.Construction will continue where permitted by local cities and towns, and Eversource field crews will continue working on projects. However, outage requests are being evaluated on a case by case basis.Outdoor meter installs will continue. Indoor meter installs will be evaluated on a case by case basis.Eversource will continue to require any and all State and Municipal Inspection requirements to move forward with energizing your facility.   For more information Eversource’s response to the COVID-19 pandemic, please visit the Eversource website
Ongoing Blood Product Shortage & Need for Blood Donation Sites As you are aware, the COVID-19 virus has caused the cancellation of blood drives across the Commonwealth. There is an urgent need now for patients with chronic conditions and trauma, as well as ensuring an adequate blood and blood product supply going forward. The Governor has deemed “Blood and plasma donors and the employees of the organizations that operate and manage related activities” as an essential service. Donating is a necessity to supply the hospitals with the blood our neighbors require. Donating blood is safe and people should not hesitate to give. In addition, there is a need for community blood drive sites in the eastern part of the state. Identifying donation sites is vital to meet the demand as we go forward. Your local knowledge, suggestions of sites, and potential partners are crucial to meeting the needs of our neighbors who need blood and blood products. To schedule a new blood drive contact Bill Forsyth at (617) 699-3808 or at email William.Forsyth@redcross.org. Those who are healthy, feeling well and eligible to give blood or platelets, are urged to make an appointment to donate as soon as possible by using the Red Cross Blood Donor App, visiting RedCrossBlood.org or calling 1-800-RED CROSS (1-800-733-2767).

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