The knowledge you need

At long last, borrowers now have the information needed to review spending policies and begin preparing the forgiveness application. There were a number of topics addressed including a new Alternative Covered Period, 75%/25% expense allocation update, documentation requirements, and a new FTE Reduce Safe Harbor.

The COVID-19 emergency has forced both businesses and individuals to make difficult decisions. For businesses, it is all about maintaining positive cash flow and reducing expenses until market conditions return to “normal”.

For businesses and nonprofits, the Paycheck Protection Program has been a source of much needed funding to stabilize operations during the COVID-19 emergency. In fact, during the initial round of funding over 48,332 loans totaling $9.4B were approved for Georgia applicants alone. These loans have been essential in helping small businesses manage payroll and other necessary expenses. However, there was also unwelcome news when it was reported that publicly traded companies had received $365M in PPP loans.

Fraud is one of those unpleasant business issues that many would rather not discuss. For those who have fallen victim to fraud, it can be a challenging topic while for others they would rather not give attention to something which has never happened in the business. It is understandable why it is not a popular topic in the boardroom, but it is one that businesses of all sizes need to carefully consider.

Last week, on April 30th, the IRS issued Notice 2020-32 which offers important guidance on related tax issues for PPP borrowers seeking loan forgiveness.

The new round of funding means that businesses not able to previously receive a loan will now have the opportunity to do. However, the timeframe for application preparation is short as the SBA announced applications will start being accepted on Monday, April 27, 2020, at 10 EST.

The announcement that the initial $349B in funds had been exhausted also served as an important reminder to recipients about the loan forgiveness process. The rules require borrowers to spend at least 75% of funds on payroll expenses and no more than 25% on qualifying mortgage interest, rent, and utility expenses. However, many questions have emerged about best practices for managing loan funds to ensure loan forgiveness.

Like many other industries, the real estate industry has been hit hard by the COVID-19 pandemic. When businesses face economic uncertainty, their financial instability trickles down to landlords, builders, and contractors.

In early March, just as the coronavirus was staking its hold in our large metropolitan communities, the Centers for Disease Control and Prevention (CDC) began encouraging non-essential businesses to operate remotely.

The challenges for certain Atlanta business owners continue to grow as the Small Business Administration (SBA) announced on April 16, 2020, the Paycheck Protection Program has exhausted it’s initial funding of $349B for COVID-19 business relief.