The much-needed fix to the Payroll Protection Program (PPP)/Federal Acquisition Regulation (FAR) Credits clause issue that has plagued consulting engineering firms for over a year was dealt another blow by the Senate. The House version of the National Defense Authorization Act (NDAA) was passed a number of weeks ago and included an amendment that would exclude PPP funds spent on payroll costs from the FAR Credits clause. This was seen as a light at the end of the tunnel for engineering firms who were going to be put in a position to “pay back” the loans they rightfully qualified for through reduced future billings. Unfortunately, the Senate version of the bill will be moving forward to final passage without this waiver language despite strong bipartisan support in both the House and the Senate.
Somerset continues to be a vital part of the national process to help correct this issue for our clients and will keep you informed of any further significant updates as they become available.
In the meantime, contact your Somerset Advisor at 317.472.2200 or to discuss next steps and strategies despite this unfortunate news.