PPP Loan Forgiveness Impact on Governement Contracts

I stayed quiet about this because I hoped that Congress would address the obviously problem with the PayCheck Protection Program (PPP) and government cost type contracts, but DCAA has now come out and taken the obvious position: there will be no eating your cake and having it too.

Any monies charged to a government contract and later forgiven via the PPP must be credited back to the government as discussed on DCAA’s website: https://www.dcaa.mil/Agency-News/Article-View/Article/2295550/frequently-asked-questions-about-the-cares-act-now-available/.

What is not clear is if the guidance applies only to cost type contracts or extends to Time and Materials and even Firm Fixed Price.

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