The knowledge you need

During the pandemic, many Atlanta businesses became familiar with the COVID-19 relief options offered through the Small Business Administration (SBA). This included the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and the Employee Retention Tax Credit (ERC). As the recovery continues and these programs end, many are looking for new ways to jump-start growth through new business opportunities. While the dynamics have changed, the SBA offers other programs such as the SBA 8(a) Business Development Program which can help qualifying businesses compete for federal contracts.

Organizations that spent $750,000 or more in federal funds with fiscal year-ends beginning after June 30, 2021, may need to abide by updated requirements from the Office of Management and Budget (OMB). The agency’s recently issued guidelines, the 2021 Compliance Supplement, supersede previously issued guidelines from November 2020. Given the increase in the number of organizations that have accepted funding from federal programs, an update was needed to ensure the proper reporting, testing, and compliance is occurring.

Unfortunately, the automobile industry has been unable to recover as quickly. Manufacturing has slowed due to a chip shortage and has left auto dealers with inventory imbalances. According to the COX Dealer Sentiment Index, Second Quarter 2021, many are still struggling to find inventory to keep up with demand. In fact, 55% of respondents indicated inventory acquisition is a top priority, while 63% indicated lack of inventory is preventing growth. Despite these complications, profitability continues to rise to allow dealers to recover to pre-pandemic levels.

The COVID-19 pandemic created significant financial challenges for many businesses, individuals, and families. In January 2020, the unemployment rate in Atlanta was 3.2% but by June it had more than doubled to 7.6%.  These numbers reflect how the fear of virus transmission and new government orders conspired to create adverse circumstances. While companies were busy adapting operations to find new ways to serve customers, individuals and families were re-assessing financial priorities to weather the storm.

For Atlanta businesses hit hard by the pandemic, the COVID-19 relief programs available through the Small Business Administration (SBA) have provided a desperately needed lifeline. This reality is reflected in the data which shows just how many businesses and organizations received financial assistance. Since the Paycheck Protection Program and Restaurant Revitalization Fund are now closed, many are looking towards the Employee Retention Tax Credit (ERTC) for additional relief.

The unwelcome news that the delta variant has caused an unexpected increase in the number of new COVID-19 infections in Atlanta has stirred up concern amongst business owners. Many are wondering if the restrictive government orders which wreaked havoc on so many last year will make a return. There is a concern about how businesses will manage without the benefit of the Small Business Administration’s (SBA) most popular COVID-19 program, the Paycheck Protection Program (PPP). Since recent updates to the forgiveness process reveal the SBA is looking to shut down the program, it is clear additional funding will not be allocated.

Continuation of Health Coverage (COBRA) benefits are available to individuals who lose health insurance after being laid off, furloughed, have hours reduced, or other qualifying events. During and after the pandemic, it's estimated that as many as 16 million U.S. workers lost employer-sponsored health coverage. Even though COBRA is an option for 18 to 36 months or longer for some plans, the cost of premiums can prove too much for many to afford. The result is that many will simply have to go without healthcare coverage due to the high cost. To address this issue, there is a temporary and fully subsidized COBRA premium available for certain individuals throughout the summer.

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.