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The Consolidated Appropriations Act, 2021, provided Atlanta businesses with new economic relief opportunities through business tax incentives, expanded Economic Injury Disaster Loan (EIDL) advances, and a newly extended Paycheck Protection Program (PPP) for first- and second-time borrowers. The Small Business Administration (SBA) recently released both new Interim Final Rules (IFR)and PPP loan applications. The information contained provided important details on loan eligibility, loan amount calculations, terms, and required certifications

The persistence of the COVID-19 pandemic has left many Atlanta businesses in a challenging situation. Restrictive government orders to curb virus transmission have forced many to make significant changes resulting in diminished revenue. Facing this reality has further exacerbated the financial challenges plaguing many business owners. The Consolidated Appropriation Act, 2021, was greeted with a sigh of relief as needed assistance in the form of new tax incentives, new EIDL advances, and an extension of the Paycheck Protection Program (PPP). Not only will the Small Business Administration reopen for first time applicants, but second draw loans are also available. Last week the SBA issued a new Interim Final Rule (IFR) which outlines important and new program details. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details.

As the second wave of the COVID-19 pandemic intensifies many Atlanta businesses continue to be limited by government orders. This has left many unable to stay open or are doing so under drastically different conditions. The result has been a series of ongoing challenges that have left many businesses and individuals eagerly waiting for relief. It is against this backdrop that Congress and the White House passed another round of COVID-19 relief. The Consolidated Appropriations Act, 2021, (the Act) provides economic stimulus payments, expanded unemployment benefits, expanded tax savings for businesses, and changes to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

In the new year, many Atlanta individuals, families, and businesses will benefit from the recently passed COVID-19 Relief Bill. There is something for everyone including tax incentives for businesses, stimulus payments, expanded individual tax savings, and favorable changes for Paycheck Protection Program (PPP)  borrowers. The comprehensive relief is designed to provide individuals with an economic boost while providing businesses additional resources for dealing with the uncertainty of the pandemic. The Consolidated Appropriations Act, 2021 (the Act) which provides over $900B in assistance also brought back a popular program that had run out of funding in July 2020, Economic Injury Disaster Loan (EIDL) advances.

The challenges of managing through the COVID-19 pandemic have impacted each Atlanta individual and family differently. While some have been able to tolerate the changes with little difficulty, others have been required to make tough decisions about expenses and finances. As the pandemic has persisted the related challenges continue to grow. Earlier this week President Trump signed the Consolidated Appropriations Act, 2021, which included the COVID Related Tax Relief Act of 2020 (the Act) that provides the comprehensive relief many have been awaiting. This includes economic impact payments, extended unemployment benefits, and an expansion of penalty-free plan withdrawals.

Businesses in Atlanta and across Georgia breathed a collective sigh of relief when it was announced yesterday afternoon President Trump signed the COVID-19 Relief Bill. It had been over 9 months since the last round of economic stimulus had been passed by Congress despite several failed attempts during the summer and fall. Significant differences in the amount of relief, which incentives and benefits to extend, and the introduction of new programs kept sides apart. The Continuing Appropriations Act, 2021 and Other Extensions (the Act) provide relief for businesses through an expanded PPP (known as PPP2), modifications to Economic Injury Disaster Loans (EIDLs), and changes to several COVID-19 business tax provisions. Given the breadth of changes, the focus of this post will be on business tax opportunities.

Atlanta businesses looking for last-minute options to increase cash flow before the end of the year may be in luck. The CARES Act, passed earlier this year, contained several tax benefits and incentives to help struggling businesses create a capital infusion. While the list is comprehensive there was one change that offers significant savings benefit, the temporary expansion of Net Operating Losses (NOLs).

Late last night Congress approved a long-awaited second COVID-19 economic stimulus package that provides over $900B in needed relief to individuals and support for businesses. While the most reported aspect is the $600 stimulus checks for individual taxpayers, it is important not to overlook the expansion and changes to the popular Paycheck Protection Program (PPP). Many Atlanta businesses that received a loan have been eagerly awaiting an update.

When the Small Business Administration (SBA) announced in late October that it will introduce a new Loan Necessity Questionnaire it created concerns about loan forgiveness eligibility. Borrowers with loans of $2M or greater are required to complete either SBA Form 3509 or 3510 depending on whether the borrower is a for-profit business or a nonprofit organization. The purpose is to help the SBA determine, for loan forgiveness purposes, whether the good faith certification about economic necessity made the loan necessary to support ongoing operations. Unfortunately, there were no comments or guidance issued when the announcement was originally made leaving the 42,000 impacted borrowers with more questions than answers.

Cash-strapped businesses looking at different options to stretch every dollar may be overlooking a valuable tax benefit: the Work Opportunity Tax Credit (WOTC). Atlanta businesses that hired eligible workers in 2020 might be able to claim between $1,200 and $9,600 for each new hire – if certain conditions are met.