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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.

Many Atlanta businesses understand the complex challenges associated with managing a 401(k), 403(b), or other employee benefit plan. Maintaining compliance with the requirements set forth in the Employee Retirement Income Security Act (ERISA), ongoing DOL guidance, and IRS regulations is complicated often requiring the assistance of one, or more, outside consultants. The purpose of these regulations is to provide comprehensive protection of participant interests in several areas from plan communications and amendments to investments and loan procedures. Although Atlanta plan sponsors never intend to make a mistake, it is more than likely that at some point one will happen.

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).

How is the IRS doing? According to key leaders on the inside, not so good. The Treasury Inspector General for Taxpayer Administration’s (TIGTA) interim report combined with the National Taxpayer Advocate's midyear report highlighted a federal agency that was already struggling to keep up … and then COVID-19 hit. Subsequent rounds of stimulus legislation and changing tax laws created what Erin Collins, National Taxpayer Advocate, called a “perfect storm.”

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.

The financial and economic conditions created for Atlanta families, individuals, and businesses, by the COVID-19 pandemic have been very challenging. For many businesses, initial stay-at-home and forced business closures meant a steep drop in revenue almost overnight. Faced with this reality, difficult decisions about employee furloughs and terminations were made. The result was a sharp increase in unemployment.

Managing a benefit plan can be a challenging task. There are multiple rules and regulations which must be followed including those mandated by both the IRS and the Department of Labor (DOL). Many of these originated with the Employee Retirement Income Security Act of 1974 (ERISA) which was designed to provide a broad framework for how plans should function including rules on plan administration, participant access, annual audits, and more.

The COVID-19 pandemic presented several and significant challenges for many Atlanta nonprofit organizations. The stay-at-home orders combined with social distancing rules not only impacted daily operations, the ability to deliver programs and services, but also had a devastating impact on revenue generation. In-person fundraisers, annual events, award programs, and more, which generate needed funds were scrapped requiring many to heavily rely on online efforts.

Since the start of the COVID-19 pandemic, there have been over 6,311 reported cases of fraud perpetrated against Atlanta individuals, families, and businesses. The primary communication method used to identify, manipulate, and extract financial information was email. The tactic, commonly referred to as a phishing attack, occurs when scammers (bad actors) attempt to solicit personal financial or other information by posing as a trustworthy organization or individual.