Real Estate

Since the start of the COVID-19 pandemic, there have been over 6,311 reported cases of fraud perpetrated against Atlanta individuals, families, and businesses. The primary communication method used to identify, manipulate, and extract financial information was email. The tactic, commonly referred to as a phishing attack, occurs when scammers (bad actors) attempt to solicit personal financial or other information by posing as a trustworthy organization or individual.

Over the past year, Atlanta businesses have endured new and unexpected financial, operational, and safety challenges. The COVID-19 pandemic created unpredictable conditions which forced many to make difficult expense-cutting decisions while seeking assistance from one of the many Small Business Administration (SBA) relief programs. Given these challenges, it is unthinkable that employees, customers, or vendors would be engaged in a fraud scheme draining precious funds so desperately needed.

With the news of increased vaccinations and a drop in the number of reported new COVID-19 cases, it is easy to understand the optimism around the expected economic recovery. However, for many Atlanta area businesses, the financial challenges continue as activity has yet to return to pre-pandemic levels. The reality is that local unemployment is hovering at 4.5% and overall Atlanta is still down over 160,000 jobs from last year.

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.

As the COVID-19 pandemic persists, Atlanta individuals, families, and businesses are feeling the impact of restrictive government orders and health mandates in schools, at work, and other public places. While the arrival of the vaccine has helped to curb the number of new infections, there is still much work to be done as Georgia has only distributed 67% of received doses. Over the coming weeks, many will line up to receive either the first or second inoculation and manage with the side effects.

For businesses substantially affected by COVID-19, the employee retention credit (ERC) has been one of the more valuable incentives to keep workers on the payroll. Since its inception in March 2020, the ERC has undergone several modifications and extensions which has increased the credit’s value. There was an initial extension for the first half of the year in the Consolidated Appropriations Act, 2021, (CAA) and then another through the end of the year in the American Rescue Plan Act. The changes are meant to provide additional relief to businesses challenged by the pandemic.

In a time when businesses are struggling financially from the persistent COVID-19 pandemic, many continue to find new paths to profitability when managing government orders. For some this has meant a transition to a remote work environment while others have had to make more significant changes to operating hours, location layout, and employee/customer safety practices. Although the impact varies, it is no secret that the pandemic is exacting a toll on many companies.

Extended as part of the Consolidated Appropriations Act, 2021, the Small Business Administration (SBA) now offers an additional dimension of support to those that previously received a PPP loan. While many of the broad program details have been covered in previous blogs, the Small Business Administration (SBA) recently released additional guidance that provides further insight. The Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts, offers new details potential applicants need to consider.

The Consolidated Appropriations Act, 2021, passed in late December provided many Atlanta businesses and nonprofit organizations with much needed financial and tax relief. While helpful, the new Biden Administration believes more is needed and is proposing a new $1.9 Trillion package to broaden the scope of assistance. The continued focus on economic relief makes it clear just how devastating the pandemic has been on the economy. While Congress and the White House work out the details of another rescue package, the IRS has also been making changes to provide relief to taxpayers. On January 19th, the IRS issued Notice 2021-10 which extends several deadlines originally outlined in IRS Notice 2020-39 governing Qualified Opportunity Zone (QOZ) investments.

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.