COVID-19 Funding

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.

Since the start of the pandemic, Atlanta businesses have endured an action-packed lineup of government orders which have changed how businesses operate. For some this has meant modified hours, reduced capacity limits, and more restrictions on how to interact with customers. No one has been hit harder than the restaurant industry as many have had to transition to pick up or delivery service.

Since the Paycheck Protection Program (PPP) was created as part of the CARES Act in March 2020, there have been 274,303 loans issued to Georgia companies totaling $8.5B.  Since the start of the pandemic, PPP loans have become increasingly popular, in part, because of the possibility of full loan forgiveness.

On March 11th, President Biden signed the American Rescue Plan Act (ARPA) into law, providing significant funding and other economic relief to Atlanta families, individuals, organizations, and businesses. Not only is there another round of economic impact payments, unemployment extension, and expanded tax credits, but important changes to the Paycheck Protection Program (PPP) and Employee Retention Tax Credit were also made. Specific funding provisions were included for local government agencies, vaccine distribution, school reopening, and more. Although not widely reported there were also important relief provisions for both Single (SEPP) and Multiemployer Pension Plans (MEPPs).

On Saturday, March 6, 2021, the U.S. Senate passed the American Rescue Plan Act of 2021, (the Act) the latest in a series of COVID-19 relief legislation. The package, which includes $1.9 trillion in aid, is set to be signed into law by President Biden within days. While much of the Plan is focused on relief for individuals and families as well as vaccine distribution, a substantial portion is aimed at supporting Atlanta businesses still impacted by the ongoing pandemic.

Over the past few weeks, the Paycheck Protection Program (PPP) has undergone significant changes as outlined in the Consolidated Appropriations Act, 2021. The Small Business Administration (SBA) has made several updates including the introduction of SBA Form 3508S, forgiveness application for loans less than $150,000, and updated both SBA Form 3508 and Form 3508EZ. In addition, Procedural Guidance was also issued outlining how PPP borrowers can apply for loan increases. For Atlanta businesses considering a first time PPP loan, the SBA released guidance on how to calculate loan maximums and required documentation. The guidance provides important information to review prior to applying because the calculation formula and documentation requirements vary based on the entity type.

The persistence of the COVID-19 pandemic has created financial challenges for businesses and organizations in a variety of industries. The restrictive government orders designed to minimize virus transmission have been difficult for some to navigate. It has been somewhat easier for those who can shift to a remote work format, but for live theatres, musical productions, concerts, zoos, cinemas, and others, the impact has been devastating. Ticket sales flat-lined overnight and while some have turned to modified programs to captivate the audience, the financial stress is overwhelming. The good news is that Congress delivered desperately needed relief through the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act in the form of a new $15B grant program. The Shuttered Venue Operators Grant (SVO) program provides immediate assistance to the hardest-hit venues.

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.

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.