Many types of welding have been proven performers for a long time. Welding is, at its core, simply a way of joining two materials. While there are other ways to join metal (e.g., riveting, brazing, or soldering), welding has become the method of choice for its availability, high performance, and high strength. NIBCO INC. highlights the benefits of laser welding, including strength and efficiency. NIBCO INC. is an MCAA major sponsor.
Visit the Smart Solutions Case Studies area of our website! You’ll see how other mechanical contractors found their win-win with productivity-enhancing and cost-saving applications from members of MCAA’s Manufacturer/Supplier Council.
Plus, you’ll find tips and ideas on other ways you and your company can save money and enhance your productivity.
In this month’s Beyond the Classroom video, hear about the power of networking from former Wentworth Institute of Technology student, Nolan Rochler.
Nolan is now a Project Engineer at J.C. Higgins and credits his learning and growth in the industry to those he had met at networking events through his student chapter. Upon graduating, he found this network to be quite useful. “You have people who are there to help you. They help you find endless opportunities. By coming to these events, you are able to build such a strong network and basically go anywhere,” Nolan shared.
Participating in MCAA’s Annual Student Chapter Competition was also an invaluable experience for Nolan. He says really learning, understanding and dissecting a real-life project, is unlike any other learning process. Nolan reminds current students to take these learning and networking opportunities and “make it whatever you want to make it.” People in this industry welcome you in, respect you, and give you the opportunity to learn and grow. Use them to help set you up for success–Nolan certainly has!
Upcoming Beyond the Classroom videos will continue to showcase opportunities available to MCAA student chapter members and MCAA members alike who choose careers in the mechanical industry.
Yesterday, Women in the Mechanical Industry (WiMI) Chair, Kori Gormley-Huppert led a lively discussion with mentor and mentees who are currently participating in the initiative’s Mentor/Mentee Program. Pattie Krippendorf, Vice President of the Service Division at Helm Group and a mentor in the program, shared her industry and life experiences, as well as offered her best advice to those newly navigating the industry. Mentees, Ali Brown, a student at the University of Nebraska at Omaha, Madelyn Conway, a project engineer at BMWC Constructors, Inc. and Michelle Mays, a Sales Operations Coordinator at Crockett Facilities Services, spoke to the value of being involved in this program, and how invaluable they have found the assistance from their mentors, women with years of experience in the mechanical industry, in career planning, networking and goal setting.
The WiMI initiative was created to enable women in the mechanical industry to further enrich their careers through networking, educational, mentoring and career development opportunities. Interested and want to get involved?
What might have been seen as a niche market opportunity for JPG was actually a continuation of their service business operations.
Outlaying the money for an expenditure like a Vac-Con Titan vactor truck might have been seen as a risky purchase for a service contractor like JPG Plumbing and Mechanical. They had no existing business in that line of operations, but hated giving up work when the job called for bigger equipment. Many contractors use a variety of equipment to clean and pump areas.
In the upcoming seventh module of the PCA’s Virtual Education Series on Plumbing Service, attendees will get a first-hand look at how the host company, JPG Plumbing and Mechanical Services, use a variety of heavy trucks together to coordinate the inspection, cleaning, pumping and removal of waste in large projects. A video, taken from their headquarters will showcase their low profile pumper trucks, their liquid vacuum pump trucks, their motorized inspection crawler camera trucks and their Vac Con Titan vactor trucks.
Following the video, the PCA’s Sean McGuire will lead a virtual discussion with JPG’s John Geiling, Marc Gluck and John Davis on how JPG approaches pumping, cleaning, hydro excavation and inspection around commercial vac service.
With the webinar, attendees will receive a handout that contains information and links to all of the products that JPG uses in their operations for vac services. This will include pricing so that contractors can help determine through their own business analysis the potential for their company.
The PCA Virtual Education Series is a seven-module case study with weekly sessions focusing on JPG Plumbing & Mechanical Services. Each module includes a video, an online discussion and handouts. The series is limited to MCAA, PCA and MSCA members and costs $400. Prior sessions can still be accessed after their live broadcast.
MCAA has recently made the difficult decision to cancel our 2021 Annual Convention and hold MCAA’s first ever Virtual Education Conference. This conference will feature all traditional, highly anticipated MCAA events including, top notch education seminars, our virtual trade show/exhibit, and of course, the impressive Annual Student Chapter Competition. While this will be a new format, MCAA is committed to setting each of the Final Four teams up for success as they prepare to present their projects. Below is a timeline that provides an overview of how the Annual Student Competition will run for 2021.
Monday, December 7th, all student chapter competition projects are due in Procore. All student chapters will be provided with their project results on Friday, January 15th. MCAA will then work with each of the Final Four teams to prepare for the Final Four presentations, including a technology requirement review and a thorough rehearsal. Final Four presentations will follow the standard time, twelve minutes per presentation, with ten minutes for Q&A. These presentations will be recorded then released to MCAA’s membership on Monday, March 22nd to kick-off MCAA’s Virtual Education Conference.
We understand this is new, but MCAA’s Career Development Committee will be there every step of the way. Stay tuned for more information and registration details. If you have any questions, please reach out to MCAA’s Director of Career Development, Megan Walsh at mwalsh@mcaa.org.
MSCA has been honoring our industry’s very own everyday heroes for the past five years at the annual education conference. Our expectations were blown away by just how many heroes we have within our industry – we received nineteen nominations this year! We are so proud of the many peers among us who do extraordinary things every day, simply out of the kindness of their hearts with a passion to make a difference for the better.
Erik Miles, EMCOR Services Nevada, Las Vegas, NV
Erik Miles, known as “Miles” to his coworkers, is a shining example of a true team player. He possess an outstanding drive to make sure everyone around him grows and feels supported. His reputation for going above and beyond for every one of his customers and team members makes him a beloved part of EMCOR Services Nevada. Miles has frequently taken younger technicians under his wing, teaching them best practices so that they may excel in the industry. In addition to his passion for others, he continually strives to grow both personally and professionally.
Mile’s supervisor, Randy Alvarado shared, “This gentleman’s customer service has exceeded any I have experienced. His customers are raving fans and his peers feel the same way. This gentleman truly cares about everything he does.”
Josh Reith, Warwick Mechanical Group, Newport News, VA
A team of Warwick Mechanical Group’s technicians, including Josh Reith, traveled to North Carolina during the peak of the COVID-19 pandemic to assist local residents who had been displaced due to Hurricane Florence. Josh left his family in Virginia to help other families get back into their homes. The team spent a week doing rebuild and repair work related to their trade but also installed insulation, exterior sheathing, gas piping, flooring, drywall, and framing. They painted, hung cabinets and performed any other repair work needed.
Josh’s colleague and 2019 Everyday Hero Award Winner Michelle Collier commented, “They all came back talking about all the nice people they met and how satisfying it was to help these families get back into their homes.”
During this time, Josh and his wife were also in the process of adopting a little girl from China. The adoption was almost finalized when COVID-19 hit and all travel was canceled, leaving them unsure when they can bring their daughter home.
Debbie Sells, American Combustion Service, Mokena, IL
Debbie is described as a dedicated, hardworking employee who always puts in extra time, without extra pay. In her dispatcher roll with American Combustion Service, she balances the wellbeing of the customer, technicians and company to provide the best service for all. This year has been extra difficult for Debbie, her husband of 30 years was diagnosed with terminal cancer and his health steadily declined just as the pandemic started. While staying home to take care of her husband, she continued to work from home with the same dedication. After the passing of her husband, Debbie became the caretaker of her mother-in-law, who no longer has any family left.
She has recently returned to work and her colleague, Niki White says, “She is MY hero, as I would not be sure I could endure as much as she has and still be as effective at her job as our dispatcher.”
MSCA is proud to recognize these heroes in our industry and distinguish them as an MSCA Extraordinary Everyday Hero. We will be spotlighting each of these heroes over the next few months. For a full list of 2020 Extraordinary Everyday Hero Awardees, please click here.
Over 450 attendees tuned in this week for MSCA’s Sales Reboot virtual program, Strategies for Navigating Change and Elevating Performance in the New Economy. Presenter Seth Mattison, internationally renowned author and expert on workforce trends and business performance, helped attendees understand how to better prepare for a world they will not recognize. Using data gathered from members in a pre-webinar survey, which included the fact that COVID has made building relationship more difficult, Mattison discussed the need for developing the proper mindset. He also emphasized the need for elevated performance through a growth audit, process discipline and future ready skills and attributes. As one viewer commented, “I think this was a thought-provoking webinar that presented some excellent ideas to research/develop.” Mattison has been a popular presenter at previous MSCA educational conferences.
The GreatFutures Virtual Fall Program has completed the sixth week with two presentations on safety and project risks. We have also covered a variety of topics including estimating, which highlighted MCAA’s WebLEM+Plus resource; project management, that covered how to properly staff and schedule projects; and fabrication, which emphasized the importance of how and why fabrication is used. All presentations are easily accessible on the GreatFutures Virtual Fall Program website for registered students to watch anytime if they are unable to attend the live presentations.
Next week, we will learn about Building Information Modeling (BIM) and why more and more mechanical contractors are utilizing the process. To understand why, we will look at the difference between Computer Assisted Design (CAD) and Virtual Design Construction (VDC). On Thursday, October 29, we have a special panel presentation highlighting MCAA’s Women in the Mechanical Industry (WiMI) Mentor/Mentee Program. Join us to hear from current mentors and mentees about why and how they got involved with the program and learn how you can get involved too. Mentees will speak to how valuable they have found the assistance from their mentors, women with years of experience in the mechanical industry, in career planning, networking and goal setting. Our mentors will share their experiences and offer their best advice as you navigate through studying and working in the industry!
Register for access to any of these upcoming sessions or to check out any of the previous presentations in the GreatFutures Virtual Fall Program. View the full schedule and register today!
In the inaugural episode of MCAA’s Sponsor Spotlight series, MCAA CEO, Tim Brink, welcomes Bill Hughes, Executive Vice President, End User Solutions for MILWAUKEE TOOL and Chair of the Manufacturer/Supplier Council. The Sponsor Spotlight Series is a new way for MCAA contractor members to learn more about the Manufacturer/Supplier Council (M/SC) Governing Board members, their products, their relationship with MCAA, and what being a member means to them.
Hughes started with Milwaukee Tool in May 2007 and was appointed Executive Vice President of the company in February 2020. He is responsible for Milwaukee’s Jobsite Solutions team, Service Operations and Customer Experience groups. As such, Hughes oversees Milwaukee Tools end user commercial strategy and execution for the company. He has over 22 years of experience in the management and development of the residential, commercial, electrical, plumbing, power utility and general construction end user verticals along with industrial distribution and retail channels. He has held key management positions with BLACK & DECKER®, and MASCO®. Hughes contributes an extensive knowledge of leadership, business development, team development and commercialization of sales and marketing activities.
The MCA of Eastern Missouri (MCA-EMO) has partnered with UA Plumbers and Pipefitters Local 562 and the Plumbing Industry Council (PIC) for CHAMPIONS, an innovative program designed to expand membership diversity in the city of St. Louis while also strengthening the Local 562 workforce.
The first class of CHAMPIONS, an acronym for Creating Hometown Advantages through Minority Participation in Our Neighborhood, recently completed an initial six weeks of intensive classroom training and technical introduction to the trades. Classes were held at Local 562’s new state-of-the-art training facility in Earth City, MO.
As part of the program, the 14 students committed to a multi-faceted course curriculum and engaged in weekly mentorship and evaluation sessions. By completing the requirements, the graduates were guaranteed a full year of employment with a CHAMPIONS Initiative contractor.
MCAA members Corrigan Company; Haberberger, Inc.; icon Mechanical; Integrated Facility Services; Murphy Company; and Charles E. Jarrell Contracting Company are among those that have committed to hiring the graduates. During their year with the contractors, graduates will continue their training as pre-Apprentices in the field, while fulfilling program requirements related to mentorship and performance evaluation.
“The CHAMPIONS pilot program was carefully designed and implemented in the best interest of the participants and our hiring contractors’ long-term success. The ongoing collaboration with our labor partners, and everyone involved, is unprecedented.” said Kristy Stephens, MCA-EMO executive director.
Steve Faust, business development and diversity coordinator for icon Mechanical, worked with Local 562, MCA-EMO and PIC to help develop the new program. “As we looked ahead at our industry’s work in the city of St. Louis over the next few years, we realized that we needed a continuing and larger diverse workforce,” said Faust. “We examined other apprenticeship training programs ‘out there’ and tried to adopt best practices that would ensure that enough craftspersons would be trained and available. In addition to the soft-skills and hard-skills training, we are excited that each person has two mentors — a seasoned journeyman as well as Fred Searcy, director of minority recruitment for Local 562.”
The participants went through a rigorous competitive interview and application process. “The initial cohort demonstrated an outstanding commitment to program terms and to Local 562; and formally agreed to be fully engaged in all facets of the program,” said Carly Carmosino, program manager for MCA-EMO, who helped to design and deliver the CHAMPIONS professional development classes as enrichment to the technical training.
She noted that, “We collaborated with several area not-for-profits, Mission STL and Prosperity Connection, as well as the St. Louis Community College Workforce Solutions Group and Dale Carnegie to provide essential tools and advice to our mentors and program participants.” She added that, “We focused on developing the whole person, so that throughout the program, participants strengthened both their technical and soft-skills aptitude.”
Scenes from Graduation
CHAMPIONS graduate and elected class speaker Desiree Baldwin delivers a heartfelt message to the graduates and their families.St. Louis County Executive Sam Page congratulates the CHAMPIONS for embarking on a new career.Missouri Governor Mike Parson and Plumbers & Pipefitters Local Union 562 Business Manager John O’Mara look on as CHAMPIONS participant Malik Johnson accepts his graduation certificate and a hard hat from his new employers, icon Mechanical Business Development and Diversity Coordinator Steve Faust and President Jeff Rush. Jeff is also President of MCA-EMO.
While sewer and drain cleaning are the main stays of plumbing service, making investments in hydro jetters opens up larger business opportunities.
Sewer and Drain cleaning are the fundamental operations for any plumbing service contractor. They are also seen as the dirtiest and least enjoyed processes to perform for service technicians. Although the work might be undesirable, its distasteful nature is the biggest factor in making it profitable. To perform it properly, it takes not only the right tools and training, it takes proper motivation and balance to your operations.
In the sixth module of the PCA’s Virtual Education Series on Plumbing Service, attendees will get a first-hand look at how the host company, JPG Plumbing and Mechanical Services, expanded their sewer and drain cleaning operations to include hydro jetting and hydro excavation. A video, taken from their headquarters will demonstrate all of the tools that they are using as well as some as they are beta testing.
Following the video, the PCA’s Sean McGuire will lead a virtual discussion with JPG’s John Geiling, and Marc Gluck on how JPG approaches drain cleaning, jetting, training and operations around commercial plumbing service.
With the webinar, attendees will receive a handout that contains information and links to all of the products that JPG uses in their operations for drain cleaning and jetting. This will include pricing so that contractors can help determine through their own business analysis the potential for their company.
The PCA Virtual Education Series is a seven-module case study with weekly sessions focusing on JPG Plumbing & Mechanical Services. Each module includes a video, an online discussion and handouts. The series is limited to MCAA, PCA and MSCA members and costs $400. Prior sessions can still be accessed after their live broadcast.
MCAA and CNA are pleased to announce that Postler & Jaeckle Corporation earned the association’s top safety award for 2019 in Size Category 4, 450,001 – 1 Million Work Hours. Postler & Jaeckle’s successful Service Specific Safety Committee set the company apart.
Recognizing that its long-standing safety committee could not adequately address both construction and service safety issues, Postler & Jaeckle established a service specific committee to fully understand and address service-specific safety issues. The new committee expands employee ownership of the safety program, with representatives from each service group location attending quarterly committee meetings. These meetings allow the group to collaboratively determine the most urgent service safety issues, prioritize them, and establish effective plans to address them. The initiative has been very successful and continues to help protect mechanical service technicians from workplace hazards.
The MCAA/CNA Safety Excellence Awards Program began in the 1990s when MCAA partnered with CNA Insurance. It is a fiercely competitive program in which only the best of the best compete for the awards.
Participants are required to describe their safety programs in detail, including how they achieved safety excellence and why they believe they deserve the award. The Safety Awards Selection Taskforce, which is led by CNA, carefully evaluates each submission looking for safety leadership, an advanced safety culture, effective leading indicators of safety performance, and innovative safety initiatives that helped the company achieve an exceptionally high degree of safety excellence.
MCAA and CNA congratulate Postler & Jaeckle Corporation for earning such a high degree of safety excellence in 2019.
MCAA’s Virtual Trade Show connects our contractor members with the members of MCAA’s Manufacturer/Supplier Council.
Participating companies highlight and link to new products, product lines, services, solutions or web pages of particular interest. Here are just a few of the recent additions:
Uponor, Inc. New Uponor ProPEX® Copper Press Adapters are the industry’s first PEX expansion to copper press transitions for ½” to 3″ sizes.
Appion Inc. A longtime leader in refrigerant recovery, the Appion G5Twin is more reliable than ever, and has received several significant internal design changes, plus an all new fan, resulting in huge performance increases (verified by UL to AHRI 740). Once again the fastest, lightest, most reliable recovery machine on the market.
Visit the Smart Solutions Case Studies area of our website to learn how other mechanical contractors found their win-win with cost-saving and productivity-enhancing applications from members of MCAA’s Manufacturer/Supplier Council.
This section of our website also includes tips and ideas to help your company save money and enhance your productivity. Don’t miss it!
MCAA, in conjunction with the UA, recently led the development of a new American National Standards Institute (ANSI) industry consensus standard on pressure testing safety. The new standard, ANSI/ASSP A10.35 Safety Requirements for Pressure Testing Steel and Copper Piping Systems, was published on October 16, 2020. The voluntary industry consensus standard is based largely on the MCAA Guide to Steel and Copper Piping System Pressure Testing Safety. The standard’s safety requirements address planning, procedures, checklists, and other items for both hydrostatic and pneumatic pressure testing on steel and copper piping systems.
PCA’s fifth module in their Virtual Education Series on Plumbing Service focuses on how JPG Plumbing committed to a big investment on video inspection services, but only after thorough analysis and proper timing.
Growing a business takes an incredible amount of patience and grit. Trying to grow too fast is one of the most common ways that construction businesses fail. Taking on a project that is too big or investing in resources before there is the workload to justify it can cripple a company quickly. Conversely, in order to grow, thoughtful steps have to be made and calculated risks have to be taken.
In the fifth module of the PCA’s Virtual Education Series on Plumbing Service, attendees will get a first-hand look at how the host company, JPG Plumbing and Mechanical Services, expanded their operations with large investments in video inspection services. The module will feature a video taken with JPG President John Geiling discussing their business evolution into video inspection and vac services, which led them to the decision to invest heavily into a Rausch robotic crawler unit. The video continues with a demonstration of the vehicle’s capabilities and the operations by the certified staff that operate it. JPG Vice President Marc Gluck also provides an overview of their standard push cameras that are used by service technicians for small and medium sized pipe inspections.
Following the video, the PCA’s Sean McGuire will lead a virtual discussion with JPG’s John Geiling, John Davis and Kevin Droter on plumbing video inspection. They will walk attendees through how to make their own business analysis, the investments that are required and the potential markets that are open to them through this service.
With the webinar, attendees will receive a handout that contains information and links to all of the video inspection products that JPG uses in their operations. This will include pricing so that contractors can help determine through their own business analysis the potential for their company.
The PCA Virtual Education Series is a seven-module case study with weekly sessions focusing on JPG Plumbing & Mechanical Services. Each module includes a video, an online discussion and handouts. The series is limited to MCAA, PCA and MSCA members and costs $400. Prior sessions can still be accessed after their live broadcast.
The CDC recently reported that airborne transmission of SARS-CoV-2 can occur in rare cases under just the right circumstances. In most cases, the virus is transmitted from one person to another in droplet form, and occurs when affected individuals are less than six feet away from the source for 15 minutes or more. That’s because the “droplets” are heavy enough to fall to the ground, and do not stay suspended in air. However, new research indicates that when exposure occurs in enclosed spaces, exposure time is greater than 30 minutes, and some kind of expiratory exertion is taking place, such as shouting, singing, or exercising, the virus can be transmitted in aerosol form (smaller particles suspended in air). Social distancing, use of masks, hand hygiene, surface cleaning and disinfection, ventilation, and avoidance of crowded indoor spaces are effective protective measures for both forms of transmission. However, adequate ventilation and avoidance of crowded indoor spaces are especially important when work is being performed in enclosed spaces where circumstances can increase the concentration of suspended small particles carrying the infectious virus. If you believe your workers could be exposed to airborne transmission of the virus, MCAA recommends that you revise your COVID-19 Exposure Control Plan to ensure adequate ventilation and avoidance of crowded indoor spaces in affected work areas.
Meet Marie. California State University, Chico Faculty Advisor and MCAA Career Development Committee member, Marie Patterson, shares how she got her start in the Mechanical Contracting Industry and what excites her about still working in the industry today, in this month’s Beyond the Classroom video.
Marie emphasizes there are endless opportunities for students who hope to work in the Mechanical Contracting industry, highlighting fun, cool, everyday venues and structures such as wineries and breweries, as mechanical construction. Marie likes to put her efforts to working on a pharmaceutical product, or a mechanical contracting project, that she knows at the end of the day will save or improve people’s lives.
Upcoming Beyond the Classroom videos will continue to showcase opportunities available to MCAA student chapter members and MCAA members alike who choose careers in the mechanical industry.
MCAA and CNA are pleased to announce that P1 Group, Inc. earned the association’s top safety award for 2019 in Size Category 5, More Than 1 Million Work Hours. P1’s successful “Why Not Zero” campaign set the company apart.
P1 presented employees with a single small goal: going accident free as a company one day at a time. Each morning started with the same small goal presented during a Daily Safety Checklist. The goal was further reinforced in safety training sessions and on employee T-shirts with the Why Not Zero logo.
The MCAA/CNA Safety Excellence Awards Program began in the 1990s when MCAA partnered with CNA Insurance. It is a fiercely competitive program in which only the best of the best compete for the awards.
Participants are required to describe their safety programs in detail, including how they achieved safety excellence and why they believe they deserve the award. The Safety Awards Selection Taskforce, which is led by CNA, carefully evaluates each submission looking for safety leadership, an advanced safety culture, effective leading indicators of safety performance, and innovative safety initiatives that helped the company achieve an exceptionally high degree of safety excellence.
MCAA and CNA congratulate P1 Group for earning such a high degree of safety excellence in 2019.
MSCA has been honoring our industry’s very own everyday heroes for the past five years at the annual education conference. Our expectations were blown away by just how many heroes we have within our industry – we received nineteen nominations this year! We are so proud of the many peers among us who do extraordinary things every day, simply out of the kindness of their hearts with a passion to make a difference for the better.
Leigh Smith, UMCI, Mukilteo, WA
“I would put Leigh up as one of the sharpest minds in the HVAC industry; UMC is fortunate to have him on their team,” is what Nels Keith had to say about UMCI colleague, Leigh Smith.
Whether on a service call, project, or tech training, Leigh portrays the skills to exceed expectations. He is a person that others often turn to for advice and guidance. His ability to work through challenging site logistics and meet customer deadlines amongst unthinkable constraints is nothing short of miraculous. One such project was a critical retrofit on an AHU at Seattle Children’s Research Institute. With a limited weather window, Leigh lead the project to retrofit an AHU with two Turbocor compressors, an evaporative condenser, a large evaporator, and controls integration within a span of approximately five weeks. Thanks to Leigh, the customer’s research was able to continue without any negative impacts. Throughout the project, the importance of the service Seattle Children’s Research Institute provides was the number one priority. Leigh has mentored many UMCI apprentices and journeyman alike through the challenges of learning a very complex trade and through personal issues.
Leeann Reece, Welch and Rushe, Inc., Upper Marlboro, MD
Welch and Rushe’s president and owner, David Welch, says “Leeann truly exemplifies the Latin origin of the word extraordinary, which is “outside the normal course of events.”
For many of us, our ordinary course of events is to be with and care for loved ones, work, and connect with friends when possible. For Leeann, every step and every breath she takes is in her service to others. Her constant ongoing activities reveal the many ways she dedicates her skills, talents, and compassion for people. For the past nine years, Leeann has served as Welch and Rushe’s HR Manager. For the past twelve years she has been an EMT and, for six of those years, an active Anne Arundel County Firefighter. Remarkably Leeann doesn’t stop there because she selflessly also serves as an emergency first responder to those who may have contracted COVID-19. We all are presented with choices to either be selfish or selfless, courageous or fearful, to remain comfortable or to take a risk to help someone else. Heroes step out, step up, and make things happen for the betterment of all. Leann is an “Extraordinary Hero” every single day.
Bob Warren, Standard Plumbing and Heating, Canton, OH
According to Chadd Cline, Bob’s manager at Standard Plumbing and Heating, “If you could “create a tech” using special software, Bob Warren would be your end result every time.”
Bob has served Standard Plumbing and Heating and the local community for 20 years. Even the best technicians know they can reach out to Bob if they ever get stumped by a service call, whether the equipment is old or new. Bob does whatever is asked of him and has embraced change every step of the way. Bob will work tirelessly until the customer is up and running. It doesn’t matter the conditions, weather, or even if he hasn’t slept in 24 hours – he is there to see the project through. With COVID-19, he was given even more of a chance to shine. While many techs did not want to enter hospitals and nursing homes, Bob worked with those customers daily. One day he even told the dispatcher he needed to get back to a site because the previous day there was a COVID-19 patient in the room he needed to work on and now that the patient is no longer in that room he wanted to finish the job. A situation that would give the best of us pause and reason to not go back did not deter Bob.
MSCA is proud to recognize these heroes in our industry and distinguish them as an MSCA Extraordinary Everyday Hero. We will be spotlighting each of these heroes over the next few months. For a full list of 2020 Extraordinary Everyday Hero Awardees, please click here.
As the very public debate in Congress regarding another stimulus bill rolls on, Withum wanted to share an update issued late last week by the SBA, in conjunction with the Department of Treasury. With lobbying groups, lenders, and borrowers long-since advocating for a more simple forgiveness process, specifically for smaller loans, the SBA took this into their own hands late last week, as they released a new interim final rule (“IFR”). Because they are required to work within the confines of the current statutes, the consequences of this interim final rule are not as far reaching as proponents for a simpler forgiveness process would like, but it’s certainly a movement in the right direction. Here are the highlights:
New Application Form and Simplification for Loans under $50,000: In the release of the IFR, the SBA granted a de minimus exemption that all borrowers who have loans under $50,000 (provided that they do not, with affiliates, exceed $2M) would be exempt from any reductions in the loan forgiveness amount based on reductions in full-time equivalents or reductions in salaries/wages. This is welcomed news to these borrowers. The SBA also released the Form 3508S, a much more simple version of the Form EZ previously issued, which just asks the borrower for the bare minimum of requirements – loan information, forgiveness amount, and for the borrower to sign the certifications. While this is welcomed news to borrowers, the statutes of the CARES Act still require that forgiveness is not to be issued unless supporting documentation supporting the expenditures is provided, and there was no change to this rule offered by the SBA. Borrowers who utilize this form are still required to submit the supporting documentation for their expenditures, ultimately supporting the amount claimed for forgiveness. Further, the IFR clarifies that lenders are required to complete the following when in receipt of such application: 1) confirm receipt of the certifications, 2) confirm receipt of the documentation required to be submitted. It clearly indicates that the borrower is responsible to provide an accurate calculation of the loan forgiveness amount.
With 3.57 million outstanding PPP loans totaling $62 billion in funds, this is set to simplify the process for about 12% of the PPP funds distributed. Withum expects that lending institutions will need some time to update their systems to allow for these applications, so borrowers who fit this mold will likely need to wait a couple more weeks to apply for forgiveness if they desire to use the new form.
Changes to the Lender Review Process for All Loans: In addition to the above, the IFR also amended lender responsibility with respect to reviewing documentation from submitted borrowers. In response to what appears to be an overwhelming number of borrowers submitting applications with documentation of eligible payroll and non-payroll costs in excess of the loan amount, lenders responsibilities are now adjusted such that they are only required to confirm the borrower’s calculation and review the required documentation up to the amount of the request forgiveness amount. Although we cannot be sure how each lender will approach/implement this guidance, it stands to increase the speed with which loans are being processed if utilized.
What Else is Going on in Congress? Since the IRS published Notice 2020-32, disallowing deductions for expenses that were forgiven under the PPP, Congress members have spoken publicly about how this notice was not in line with the intentions of the CARES Act. On October 1, the House passed an updated Heroes Act which contained language allowing such deductions, marking the first time we have seen any legislation overturning the IRS notice make any headway. Based on what has transpired since that date, we know that the Heroes Act, in it’s current form, is very unlikely to be signed into law, however inclusion of language in this regard is encouraging nonetheless.
Also at the forefront of these discussions are additional appropriations for the PPP funds. At the very least, the White House has signaled that they would be amenable to redeploying the nearly $130B of unused appropriations for the PPP, and Congress members on both sides of the aisle have indicated they are favor of a PPP v2. The most solid proposal we have seen to date is within the updated Heroes Act, which includes a second round of loans, utilizing the same formula as the first round, to eligible ‘smaller businesses’ of 200 employees or less who can also demonstrate a 25% reduction in revenues in either Q1, Q2 or Q3 as compared to last year. The maximum size loan under this proposal would be $2M. Eligibility under alternative size standards and how the affiliation rules would be applied are not clear at this time.
