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Josh Crisp

Forgiveness can be challenging for many individuals, but it turns out the Small Business Administration (SBA) is also having a difficult time with it too. It has been reported by many lenders there have been challenges encountered managing the hundreds of Paycheck Protection Program (PPP) loan forgiveness applications received resulting in delays. Concurrently, borrowers have also been challenged by trying to work through an overly burdened forgiveness process. To address these issues, the SBA recently issued a new Interim Final Rule (IFR) which makes several changes designed to simplify and speed up the process.

For Atlanta businesses hit hard by the COVID-19 pandemic, the relief programs offered by the Small Business Administration (SBA) including the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF) provided needed funding. However, as the pandemic subsides and programs close, options appear to be dwindling. Despite this fact, there are still ways to receive assistance from the federal government including the Employee Retention Tax Credit (ERC). This federal payroll tax credit provides a credit equal to 70% of up to $10,000 in qualified wages per eligible employee.

The economic conditions created by the COVID-19 pandemic have been easing in recent months due to the widespread distribution of the vaccine. Rolled-back restrictions have restored consumer confidence and increased demand. It was reported that the state unemployment rate for June had fallen to 4%, sharply lower than the 5.9% national average. Despite this, many Atlanta businesses are still struggling to overcome a year of lost sales and lackluster financials. Unfortunately, the recent closure of the Paycheck Protection Program (PPP) and Restaurant Revitalization Fund (RRF) has made it even more difficult. Although it may seem options are running out, it is important not to forget about the Employee Retention Tax Credit (ERC).

Since the Paycheck Protection Program (PPP) officially closed on May 31, 2021, there have been very few updates issued by the Small Business Administration (SBA). Most Atlanta borrowers have been focused on assessing loan forgiveness requirements, classifying expenses, making needed calculations, compiling documentation, and completing certifications.

Since the start of the pandemic, many Atlanta area businesses and organizations have relied on the Paycheck Protection Program (PPP) as a source of needed working capital. Originally implemented as part of the CARES Act, it has become one of the most popular Small Business Administration (SBA) offerings likely due to the forgiveness feature.

Since the start of the pandemic, Atlanta businesses have endured an action-packed lineup of government orders which have changed how businesses operate. For some this has meant modified hours, reduced capacity limits, and more restrictions on how to interact with customers. No one has been hit harder than the restaurant industry as many have had to transition to pick up or delivery service.

Since the Paycheck Protection Program (PPP) was created as part of the CARES Act in March 2020, there have been 274,303 loans issued to Georgia companies totaling $8.5B.  Since the start of the pandemic, PPP loans have become increasingly popular, in part, because of the possibility of full loan forgiveness.

The American Jobs Plan is a $2.3 trillion piece of legislation designed to improve America’s physical and digital infrastructure while enhancing advanced manufacturing capabilities. Atlanta construction companies stand to benefit from the proposed investment through targeted projects such as new roads and bridges, airports, rail, seaports, and even additional workforce training.

For businesses substantially affected by COVID-19, the employee retention credit (ERC) has been one of the more valuable incentives to keep workers on the payroll. Since its inception in March 2020, the ERC has undergone several modifications and extensions which has increased the credit’s value. There was an initial extension for the first half of the year in the Consolidated Appropriations Act, 2021, (CAA) and then another through the end of the year in the American Rescue Plan Act. The changes are meant to provide additional relief to businesses challenged by the pandemic.

In recent weeks, the Biden Administration has focused on expanding COVID-19 relief opportunities for small businesses through the Paycheck Protection Program (PPP). It was announced on February 22nd the Small Business Administration (SBA) would be initiating several changes including an exclusive 2-week application period for small businesses and a new loan calculation formula. On March 3rd, the SBA issued Interim Final Rule (IFR), Paycheck Protection Program Revisions to Loan Amount Calculation & Eligibility, that modifies the formula for determining the maximum loan amount using gross income rather than net profit.