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Josh Crisp

Now that the pandemic has passed almost all these programs are no longer available. In fact, the recently enacted Infrastructure Investment and Jobs Act called for an early end to the Employee Retention Credit. The only remaining program is the Economic Injury Disaster Loan (EIDL) which is set to expire at year-end. Earlier today, the SBA announced new guidance to help small businesses that are considering applying for a new loan, targeted advance, or supplemental advance.

Atlanta businesses required to undergo an annual financial statement audit will notice several new changes to the auditor’s report. Outlined in the Statement on Auditing Standards (SAS) 134 – Auditor Reporting, the modifications are designed to increase the value of the report to management. The changes have been years in the making – going back to 2011 when the Accounting Standards Board began the path to more consistent auditing standards for all entities. In 2015, the Public Company Accounting Oversight Board (PCAOB) and the International Accounting Standards Board (IASB) made changes to auditor report requirements, which paved the way for SAS 134. Much like other standards updates, the changes outlined in SAS 134 will help to make the auditor’s report more useful and transparent to financial statement users.

After two years of implementation delays, construction contractors, other private companies, and certain not-for-profits must now implement a new accounting framework for revenue recognition. The comprehensive changes outlined in Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, Topic 606, is designed to improve the consistency of financial reporting of businesses across different industries. The standardization is meant to help external stakeholders better understand a company’s financial position and compare data across industries.

The arrival of the pandemic was so unexpected and jarring that many were caught off guard when restrictive government orders were issued. Many Atlanta businesses were forced to shut down while others could only operate in a limited capacity. Financial conditions for many business owners were dire, but desperately need help came in the form of federal COVID-19 relief programs through the Small Business Administration (SBA). One of the most popular has been the Employee Retention Tax Credit (ERC) which has provided both tax relief and refund payments throughout the pandemic. In other words, it has been an essential lifeline for those struggling to survive. In fact, in 2021 alone, more than 30,000 small businesses claimed more than $1 billion in credits.

As the economy barrels into recovery many Georgia businesses are welcoming the change with open arms. The increased demand for products and services means many will soon return to pre-pandemic profitability. Despite the optimism, the reality is the aftereffects of COVID-19 are creating new challenges for many, including Atlanta construction companies and contractors. The confluence of supply chain issues, increasing material costs, and project delays have made recovery a challenging endeavor. Matters are further complicated by the news that worker shortages are once again a growing concern.

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.

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).

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.

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.