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. In Georgia alone, over 316,968 loans have been approved totaling over $9.2B. Concurrently, there have been dozens of changes to processes and procedures impacting applicants, recipients, and lending institutions. The most recent came through the American Rescue Plan which expanded eligibility, increased funding, and extended the application deadline to May 31st. Given the changes, it was widely expected that funding would lapse before the extended filing deadline passed. On May 4, 2021, this was proven correct, when it was discovered no new PPP loans were being accepted.
Many Atlanta banks found that when attempting to originate new loans within the SBA portal they were denied. The news was confirmed in a member alert issued by the National Association of Government Guaranteed Lenders. This means that Atlanta businesses seeking to start a new application will not be permitted to do so. However, those businesses which are women-owned, minority-owned, or located in an economically depressed area can still access the $8B set aside for community lenders. Those with pending applications are not expected to be impacted.
The SBA has not yet made a public announcement, but it is expected they will do so shortly. If you are looking for relief options, the Economic Injury Disaster Loan (EIDL) and the Employee Retention Credit (ERC) are viable options to consider. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to assisting you soon.
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