COVID-19

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.

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 Unfortunately, there were no comments or guidance issued when the announcement was originally made leaving the 42,000 impacted borrowers with more questions than answers.

U.S. independent auto dealerships started 2020 with a measured and slightly positive outlook and will be ending the year like most other industries: down. The coronavirus pandemic has shattered and reshaped outlooks for practically every sector, including auto dealerships. That is not to say that 2020 has not been without its opportunities, however, as there are several positive forward-looking trends that spell opportunity.

2020 has been a year of unique events and unexpected outcomes. For many, the pandemic has forced them to take things one day at a time. This is especially true for Atlanta businesses that have taken a loan through the Paycheck Protection Program (PPP). Since the PPP was launched as part of the CARES Act in March, there have numerous changes and updates including 2 separate frequently asked questions (FAQs) documents published and 26 interim final rules.

The popular Paycheck Protection Program (PPP) is back in the news again as the Small Business Administration (SBA) is seeking formal approval from the Office of Management and Budget (OMB) to collect loan necessity information. The questionnaires include SBA Form 3509 (nonprofit organizations) and 3510 (for businesses) are designed to obtain more detailed information about loan necessity from borrowers who received loans greater than $2M.

It appears the Paycheck Protection Program (PPP) is back in the spotlight as the Small Business Administration (SBA) continues to issue guidance and updates on loan forgiveness. The shift breaks months of silence about forgiveness, the application process, and when borrowers should start applying. Many Atlanta businesses have been in a holding pattern on forgiveness because it was expected more changes would come.

he COVID-19 pandemic has created disruption across the economy impacting businesses in every industry. It started in March with forced business closures and stay at home orders and has continued with modified operating rules issued by the state and Centers for Disease Control (CDC). While necessary to protect public health, it has resulted in one of the most challenging business climates in decades. Although each industry has been impacted differently, construction has not been immune to the fallout.

The attempts by Congress to negotiate another round of Coronavirus relief for individuals, businesses, and local government agencies have failed to move forward. The inability to come to agreement left many relying on expected relief frustrated and concerned about the future.

The fast and furious updates around the Paycheck Protection Program (PPP) and the loan forgiveness process have come to a screeching halt recently. Since the Small Business Administration (SBA) opened the loan forgiveness portal, officially forgiveness applications from borrowers, there has been very little guidance or updates issued.