h digitalfootprint web 728x90

Associated General Contractors sue SBA, OMB over PPP questionnaire

/wp-content/uploads/2022/11/BR_web_311x311.jpeg

The Associated General Contractors of America, which represents more than 27,000 construction firms, filed a lawsuit on Tuesday to compel the U.S. Small Business Administration and the Office of Management and Budget to revise the questionnaire being used to reassess whether companies were eligible for Paycheck Protection Program loans. In the complaint filed in U.S. District Court in the District of Columbia, the association noted that the CARES Act, which established the PPP program, only required loan applicants to make a “good faith certification that the uncertainty of current economic conditions makes necessary the loan request. …” The AGC asserts that the form attempts to set a means test, a revenue reduction test and a liquidity test that Congress never contemplated, and it focuses on later events that few companies could have predicted when applying. The AGC is requesting the court to declare that the questionnaire is arbitrary and capricious, and to declare that the SBA cannot lawfully use the information that the form generates to find a company ineligible for a PPP loan or deny a company’s application for forgiveness of its loan.