The knowledge you need

Many are unaware of this, but Georgia is known as the Hollywood of the South because of all the film productions which choose the state as the location of choice. In fact, according to the Georgia Department of Economic Development, there was a new record set last year with 399 productions filmed representing a $2.9B infusion to the state economy.

The SECURE Act implemented in late 2019 and the CARES Act which passed earlier this year outlined several changes to how retirement plans are required to operate. While adoption of certain changes is optional, others are not, requiring the plan sponsor to make plan document amendments.

The attempts by Congress to negotiate another round of Coronavirus relief for individuals, businesses, and local government agencies have failed to move forward. The inability to come to agreement left many relying on expected relief frustrated and concerned about the future.

The fast and furious updates around the Paycheck Protection Program (PPP) and the loan forgiveness process have come to a screeching halt recently. Since the Small Business Administration (SBA) opened the loan forgiveness portal, officially forgiveness applications from borrowers, there has been very little guidance or updates issued.

The COVID-19 pandemic has had a significant impact on Atlanta area businesses. The forced business closures which triggered an immediate and unexpected drop in revenue to the challenges of reopening while cases surged across Georgia. New terms such as social distancing and personal protective equipment have become part of the daily conversation. Benefit plan sponsors have also had to react to the various changes implemented by the CARES Act such as increased participant loan limits, Coronavirus Related Distributions, and a waiver of Required Minimum Distributions (RMD) in 2020. Although helpful, the changes have required plans to modify how they operate, and in some cases, adopt new plan amendments to maintain ERISA compliance.

Since the CARES Act was introduced at the end of March 2020 and the Paycheck Protection Program (PPP) offered small businesses a lifeline, there have been more questions than answers at different times. One question that has remained top of taxpayers’ minds concerns how – and whether – PPP loan funds are taxed.

The impact of the COVID-19 pandemic has resulted in many changes for Atlanta area businesses. It started with the abrupt government orders around business closures and stay at home orders and transitioned to re-opening guidelines that mandate both employee and customer safeguards (facemasks, social distancing, and sanitizers). There are several well-documented loan programs such as the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) designed to help businesses financially thrive.

The good news for DeKalb County businesses is there is a new business loan program, with a loan forgiveness feature, which will soon begin accepting applications. The DeKalb Better Business Loan Program offers qualifying businesses experiencing financial difficulties due to the COVID-19 pandemic access to low-interest loans. Like the PPP, borrowers are required to use loan proceeds to pay certain business expenses including payroll, business interest, rent, utility, and other business-related debts.

The Paycheck Protection Program (PPP) has been an essential source of funding and capital for Atlanta businesses working through the COVID-19 pandemic. Although the program’s popularity seemed to dwindle in recent weeks, the Small Business Administration reported that over 174,000 loans totaling $14.6B have been issued to Georgia companies.

The Paycheck Protection Program (PPP) has been a valuable tool for Atlanta businesses impacted by the COVID-19 pandemic. When originally initiated as part of the CARES Act it was rolled out very quickly in order to disburse funds to applicants. The drawback to this approach is the need for ongoing program updates necessary to provide clarification and guidance.