COVID-19

As reported cases of COVID-19 continue to reach new highs in Georgia, with an average of 3,394 per day, there is an increasing concern in the business community that restrictions and forced closures will again be implemented.

Last month it was announced the Paycheck Protection Program (PPP) loan forgiveness application had received a major overhaul. The updates were required to comply with the changes set forth in the PPP Flexibility Act of 2020. Prior to passage, there was feedback that aspects of the program needed to be changed to avoid confusion and make it easier for borrowers to apply. The approved updates include an extended covered period, a 5-year term for new applicants, new FTE Safe Harbor, FTE exceptions, and several modifications to the overall process. One important change was the publication of the new EZ and long-form forgiveness applications.

The COVID-19 pandemic has significantly impacted both individuals and businesses. The various regulations designed to curb the spread of the coronavirus has impacted nonprofits in ways that were impossible to predict. Over the past few months, statewide restrictions on large gatherings combined with stay at home orders have left many cut off from essential fundraising activities.

The impact of the COVID-19 emergency including containment efforts have created challenging situations for many Atlanta businesses, both initially and through reopening. During the first weeks of forced business closures and shelter in place orders, individuals and businesses were required to significantly change everyday patterns. Not only were local stores, restaurants and gathering places closed, but many did not want to risk going out for fear of infection.

The impact of COVID-19 protection measures including the stay at home orders, forced business closures, and general uncertainty about prevention, left many businesses and nonprofits in a compromised position.

On June 17th, the Small Business Administration (SBA) released an updated loan forgiveness application including the long-form (SBA Form 3508) and a new abbreviated version (Form 3850 EZ).  It was necessary to update them because of the modifications made by the PPP Flexibility Act of 2020. The EZ version of the application was developed to make it easier for sole proprietors and the self-employed to apply.

The impact of the COVID-19 forced business closure and stay at home orders have created difficult conditions. Almost overnight businesses were forced to endure significant changes to their business model which came with difficult decisions about expenses, employees, and the future. While much of the attention has focused on the retail, restaurant, and hospitality industries the construction industry was also sharply impacted.

The arrival of the COVID-19 pandemic made significant changes to daily life through forced business closures, stay at home orders, and heightened fear of contraction. The convergence of these changes left many businesses forced shut and others with an altered business model and a dwindling demand for products and services.

As the COVID-19 emergency measures phase-out and the state continues to reopen, contractors and construction companies are looking to position themselves for the future. While there are many considerations that need to be made to comply with state and local guidelines, management is also spending time reviewing cash flow strategies.

From the start of the COVID-19 emergency, it was clear the stay at home orders and forced business closures would have a punishing impact. The abrupt changes to operating rules combined with fear of virus transmission left many with dwindling demand for their products and services. Without a consistent source of revenue to pay employees and offset other expenses, very difficult decisions had to be made to ensure the business could survive