COVID-19 Funding

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.

Atlanta businesses seeking a cash flow infusion due to the COVID-19 emergency have federal, state and local loan options. Since not every loan features the same terms and benefits it’s important to closely review terms to determine the best opportunity.

To help Congress initiated the Paycheck Protection Program (PPP) a forgivable loan available to businesses to support employee compensation and payroll expenses. The quick rollout of the program has created some issues and confusion leaving many Atlanta business owners with important questions. Although Treasury has issued interim final guidance, there are still questions about loan and employee calculations and the need for application resubmission.

The challenges faced during the COVID-19 emergency are far-reaching and have impacted virtually every business. Not only have stay at home and business closures drastically impacted revenue, but the expansion of employee paid leave and emergency benefits have added another dimension to the problem.

President Trump recently signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, (the Act) that created $2T in relief including tax modifications and updates, new rules for benefit plans and new financing opportunities.

The Coronavirus Aid, Relief and Economic Security (CARES) Act,(the Act) offers comprehensive relief to Atlanta businesses and individuals during this unprecedented emergency. It comes on the heels of the Families First Coronavirus Response Act, which solidified new and existing paid sick leave policies and created tax credits for impacted companies.

It’s obvious there are many businesses which currently, or soon will need help with payroll, leases and employee expenses. Matters have been made worse because many don’t know where to turn for help. The good news is companies absorbing COVID-19 losses can now apply for an SBA Economic Injury Disaster Loan (EIDL) to help.